What Are Current Liabilities in a Dental Practice?
Current Liabilities are short-term financial obligations your practice is legally required to pay within the next 12 months. These include bills, taxes, loan repayments, and other payables due imminently.
They’re a core part of the working capital equation:
Working Capital = Current Assets – Current Liabilities
Low liabilities = breathing room
High liabilities = pressure, risk, and cash stress
Why Current Liabilities Matter for Dental Practice Owners
You can’t manage cash wisely without knowing what’s due — and when.
Too many dental owners look at the bank balance, forgetting:
- Payroll is due next week
- Corporation Tax hits in January
- NHS clawback is lurking in March
This leads to false confidence, overspending, and unexpected borrowing.
Example:
| Payables | Amount |
| Associate Pay | £18,000 |
| Lab Bills | £7,500 |
| Corporation Tax Due | £22,000 |
| NHS Clawback | £12,000 |
| Total Current Liabilities | £59,500 |
DentPulse syncs these due dates automatically — removing guesswork.
Common Current Liabilities in Dentistry
| Category | Examples |
| Trade Payables | Lab fees, materials, equipment invoices |
| Payroll | Wages, PAYE, pensions, associate payments |
| Tax Liabilities | Corporation Tax, VAT (if applicable), NHS clawback |
| Deferred Income | Patient deposits for incomplete treatments |
| Loan Instalments | Equipment lease payments due within the year |
| Credit Cards & Overdrafts | If repayable within 12 months |
| Utilities & Rent Arrears | Any unpaid bills for practice operations |
Many dentists underreport liabilities — because their accountant doesn’t reconcile payables monthly. DentPulse fixes this.
How DentPulse Tracks and Manages Current Liabilities
| Feature | Function |
| Live Liabilities Feed | Shows exactly what’s due, when |
| CFFP™ Forecasting | Matches upcoming liabilities to expected inflows |
| 12-Week Cash Buffer | Stress-tests whether you can cover liabilities without new revenue |
| PPP™ Drawings Tracker | Blocks unsafe personal withdrawals |
| Red–Amber–Green Zones | Flags when short-term risk exceeds safety margin |
DentPulse gives you clarity over your obligations — before they become a crisis.
DentPulse Tip™
Cash in the bank means nothing
if your liabilities exceed your inflow.A practice can be profitable on paper — and still miss payroll. That’s why DentPulse treats liabilities as live, not accounting-only.
Related Glossary Terms
- Working Capital – The buffer between your assets and liabilities
- Current Assets – Cash, receivables, and other liquid resources
- Deferred Income – A key liability that distorts cash confidence
- CFFP™ – Cash Flow Future Pairing engine to match outflows to inflows
- 12-Week Cash Buffer – Measures how long you can last if income stops
Glossary Summary Table
| Term | Meaning |
| Current Liabilities | Financial obligations due within the next 12 months |
| Purpose | Reveal near-term cash obligations and affect working capital |
| Financial Impact | Affects liquidity, cash flow safety, and PPP™ drawings |
| DentPulse Advantage | Tracks due dates in real time, forecasts pressure, and prevents financial blind spots |
