What Is Net Cash Flow in a Dental Practice?
Net Cash Flow is the difference between all cash inflows and outflows in a given period — usually a month or quarter.
It tells you whether your practice gained or lost cash, regardless of what your profit and loss statement says.
- Positive net cash flow = more cash came in than went out
- Negative net cash flow = more cash went out than came in
Net cash flow is the ultimate “can we afford this?” metric — from drawings to debt repayments.
Why Net Cash Flow Matters for Dental Practice Owners
Most dentists track profit — but cash flow is what pays the bills.
A practice can be highly profitable and still struggle if:
- Patients pay late
- VAT or tax bills land at the wrong time
- You over-invest in CapEx or expansion without cash cover
- Drawings or associate pay exceed inflows
Example:
- Revenue: £90K
- Outflows: £84K
→ Net Cash Flow = +£6K
Even if profit was only £3K, your cash position improved — and you have room to invest or draw.
Net Cash Flow vs. Profit: Key Differences
| Area | Net Cash Flow | Net Profit |
| Timing | Based on when money moves | Based on when income is earned |
| Purpose | Tracks liquidity | Tracks performance |
| Includes CapEx | ✅ Yes | ❌ No |
| Includes Loan Payments | ✅ Yes | ❌ No |
| Affected by Depreciation | ❌ No | ✅ Yes |
DentPulse helps you track both — but prioritises cash visibility so you avoid timing-based mistakes.
How DentPulse Tracks and Improves Net Cash Flow
| Feature | Function |
| CFFP™ – Cash Flow Future Pairing | Pairs upcoming inflows with outflows to protect future net cash |
| LIQUIDIQ™ Score | Ranks your liquidity strength based on current and forecasted cash flow |
| PPP™ Overlay | Ensures drawings only occur when net cash flow supports it |
| Variance Alerts | Flags if actual cash differs sharply from forecast |
| Scenario Simulator | Models how changes to pay, tax, or reinvestment affect cash flow |
DentPulse ensures your net cash flow is visible, manageable, and linked to strategic decisions.
DentPulse Tip™
Profit tells you how well you’re doing.
Net cash flow tells you if you’ll survive to keep doing it.Never draw, expand, or relax based on profit alone.
Always check net cash.
Related Glossary Terms
- Cash Flow Statement – Tracks operating, investing, and financing flows
- CFFP™ – Cash Flow Future Pairing – Projects whether net cash stays positive
- Operating Cash Flow – Cash from core dental operations only
- 12-Week Buffer – Long-term survival metric
- PTP™ – Profit-to-Pocket™ – Blocks drawings unless net cash supports it
Glossary Summary Table
| Term | Meaning |
| Net Cash Flow | The total change in cash over a set period, after all inflows and outflows |
| Purpose | Tracks cash health, not just profit |
| Key Use | Determines ability to invest, pay debt, or draw income |
| DentPulse Advantage | Real-time visibility and forward pairing to prevent hidden risks |
