What Is a Cash Flow Statement in Dental Practices?
A Cash Flow Statement is a financial report that shows the actual cash entering and leaving your practice over a specific period — split by operating, investing, and financing activities.
Unlike the Profit and Loss (P&L), which reflects earnings, the cash flow statement reveals real movement of money in and out of your bank account.
It’s the only report that explains why your practice can be profitable on paper… but still low on cash.
Why the Cash Flow Statement Matters for Dental Practice Owners
If you’ve ever said:
“We made £100K in profit — so where did the money go?”
The answer lives in your cash flow statement.
It shows:
- Why you’re short despite good revenue
- Whether tax payments, equipment buys, or debt repayments drained your cash
- How much money was truly available to draw — after all obligations
Example:
Your P&L shows £86,000 in profit.
But your cash flow statement shows:
- £18,200 in Corporation Tax paid
- £14,600 in loan repayments
- £12,400 in equipment investment
- £9,000 increase in debtors (invoiced, not received)
= Only £31,800 in real bank movement
Without this visibility, you’ll overdraw, underplan, or fear growth.
What Are the Main Sections of a Cash Flow Statement?
| Section | What It Tracks |
| Operating Activities | Cash from day-to-day patient care (collections – expenses) |
| Investing Activities | Equipment purchases, practice refurbishments, asset sales |
| Financing Activities | Loan draws, repayments, owner drawings, capital injections |
This report is a core tool in the Manage phase of the MAP Method™.
How DentPulse Enhances Your Cash Flow Statement
| Feature | Function |
| Real-Time Bank Sync | Automatically categorises inflows/outflows by activity type |
| LIQUIDIQ™ Overlay | Translates cash flow into a liquidity health score |
| PTP™ Alignment | Ensures cash supports personal income targets, not just operations |
| One-Off Tracker | Flags irregular cash events distorting trends |
| CFFP™ Integration | Projects upcoming periods to extend the value of the current report |
DentPulse transforms your cash flow statement from an accounting report into a real-time visibility tool.
DentPulse Tip™
Profit can lie. Cash can’t.
The cash flow statement is your financial truth serum.
DentPulse makes it live, automated, and connected to every smart decision you make.
Related Glossary Terms
- Profit and Loss Statement (P&L) – Reflects revenue and expenses, not cash timing
- MAP Method™ – Manage, Analyse, Project: DentPulse’s cash management engine
- Profit-to-Pocket™ Model – Ensures cash flow supports personal income
- Burn Rate – Measures negative cash movement per month
- Cash Flow Forecasting – Predicts future statements based on current trends
Glossary Summary Table
| Term | Meaning |
| Cash Flow Statement | A financial report showing actual cash inflows and outflows over a period |
| Sections | Operating, Investing, and Financing Activities |
| Key Role | Reveals true cash movement, explains profit-to-cash gaps |
| DentPulse Advantage | Live, bank-fed, action-ready reports integrated with PPP™, LIQUIDIQ™, and forecasts |
