What Is Operating Cash Flow in a Dental Practice?
Operating Cash Flow (OCF) is the net cash your dental practice generates from its core day-to-day operations — treatments delivered, plans received, NHS contracts paid — after subtracting operating expenses like staff wages, associate pay, labs, materials, and rent.
It excludes financing (like loans or overdrafts) and investment activity (like buying equipment).
Why Operating Cash Flow Matters for Dental Practice Owners
OCF tells you whether your business funds itself — or relies on outside support.
If your practice:
- Looks profitable but is cash-starved
- Keeps needing top-ups from director loans or overdrafts
- Has rising income but also rising debt…
…it’s likely your OCF is weak or negative.
Example:
- Net collections: £80,000
- Operating costs: £68,000
→ Operating Cash Flow = £12,000
That’s your true monthly cash surplus — and the starting point for safe reinvestment or drawings.
What’s Included in Operating Cash Flow?
| Included | Excluded |
| ✅ Net patient and NHS collections | |
| ✅ Staff and associate pay | |
| ✅ Labs, materials, and sundries | |
| ✅ Rent, utilities, admin expenses | |
| ✅ Marketing and practice software | |
| ❌ Loan repayments | |
| ❌ Equipment purchases (CapEx) | |
| ❌ Drawings, dividends, taxes | |
| ❌ Director loans or injections |
DentPulse isolates this number so you can see exactly what your clinical business is generating in cash — before external inflows or outflows.
How DentPulse Tracks and Optimises Operating Cash Flow
| Feature | Function |
| LIQUIDIQ™ Dashboard | Tracks OCF in real-time and flags negative trends |
| CFFP™ Engine | Projects OCF vs. fixed commitments over the next 13 weeks |
| PPP™ Overlay | Ensures drawings happen only if OCF supports it |
| CapEx + Loan Filters | Separates true business cash from one-off transactions |
| Scenario Forecasting | Models how changing costs or pricing affects OCF |
DentPulse shows you whether your business is cash-healthy — or cash-hungry.
DentPulse Tip™
Operating cash flow is your financial pulse.
Ignore it, and you’ll make big decisions on false confidence.Strong OCF means you can breathe, plan, and scale without fear.
Related Glossary Terms
- Net Cash Flow – Includes all inflows and outflows, including loans and tax
- CFFP™ – Cash Flow Future Pairing – Forecasts upcoming OCF pressure points
- 12-Week Buffer – Built from strong, consistent OCF
- PTP™ – Profit-to-Pocket – Ensures income is only drawn from true cash
- Overheads – Recurring monthly costs that reduce operating cash
Glossary Summary Table
| Term | Meaning |
| Operating Cash Flow | Net cash generated from core dental operations — after paying costs, before debt or tax |
| Purpose | Tracks cash health of your real business |
| Key Use | Drawing limits, investment timing, growth planning |
| DentPulse Advantage | Separates OCF from one-off cash spikes and shows real-time sustainability |
