What Is Cash Position in a Dental Practice?
Cash position refers to the total amount of liquid cash a dental practice has available at a given moment — typically measured by the balance in its bank accounts.
It’s a snapshot of your immediate liquidity and is often the first number a principal dentist checks when making day-to-day financial decisions.
Why Cash Position Matters for Dental Practice Owners
A strong cash position means:
- Bills, payroll, and supplier payments can be made without stress
- You can seize opportunities (e.g., equipment purchase, marketing push)
- You’re less reliant on overdrafts or short-term financing
A weak cash position signals potential trouble:
- You may need to delay investments or growth plans
- Unexpected expenses can cause immediate cash shortages
- Stress and reactive decision-making can increase
Example:
- End-of-month bank balance: £62,000
- Fixed outgoings next month: £58,000
→ Cash position leaves just £4,000 buffer — below DentPulse’s recommended MCBTP™ (Minimum Cash Balance to Protect).
What Cash Position Includes
| Included | Excluded |
| Current account balances | Unused overdraft limits |
| Savings accounts for the practice | Patient prepayments not yet earned (deferred income) |
| Petty cash | Credit facilities (loans, credit cards) |
How DentPulse Tracks Cash Position Automatically
| Feature | Function |
| Live Bank Feeds | Real-time balance updates from linked accounts |
| Cash Categorisation | Separates operational cash from tax savings or reserves |
| Liquidity Alerts | Flags when balance drops below safety threshold |
| Integration with CFFP™ | Predicts future cash position up to 13 weeks ahead |
DentPulse makes cash position more than a number — it’s part of a live liquidity strategy.
DentPulse Tip™
Your cash position is a snapshot, not the whole story.
Combine it with cash flow prediction and 12-week buffer tracking to get a complete picture of financial health.
Related Glossary Terms
- Cash Flow Prediction – Future inflows/outflows forecast
- MCBTP™ – Minimum Cash Balance to Protect – Safety buffer limit
- Cash Reserves – Set-aside funds for emergencies or tax
- Liquidity – Overall ability to meet obligations without financing
- 12-Week Cash Buffer – Resilience measure for fixed costs
Glossary Summary Table
| Term | Meaning |
| Cash Position | The total liquid cash available in a practice at a given time |
| DentPulse Advantage | Live tracking, alerts, and integration with predictive tools |
| Purpose | Ensure immediate obligations can be met and opportunities seized |
