How Can I Create Consistent Cash Flow in My Practice?
Jul 01, 2024
This is the fifth and final segment in our series on the Core Principles of the Profit First for Dentists method. Let’s focus on the last principle: Enforce a Rhythm.
Dentists often find their cash flow to be like a roller coaster—up one month, down the next. This unpredictability can make it difficult to cover all expenses and payroll. Instead of constantly playing catch-up or stressing out when bills are due, it's important to establish a consistent weekly cash flow routine.
By setting up a reliable cash flow system week by week, you can say goodbye to the stress and enjoy peace of mind. A weekly rhythm allows you to divide and transfer funds to different accounts based on a percentage, ensuring that each account is adequately funded.
When your collections are high, you can use the extra funds to boost each account. And when collections are lower, it's no big deal because you already have a reserve in place. This simple practice of weekly fund allocations will help stabilize your cash flow in no time.
No longer will you need to rely on a profit and loss statement to understand your financial position—and let's be honest, most of us aren't doing that anyway. Understanding your cash flow becomes as easy as checking your bank balances.
Profit First offers you a clear process and a reliable measuring tool to make it happen. With this final principle, you'll be well on your way to creating consistent cash flow in your practice. Don't forget to subscribe to my YouTube channel to learn more about managing the business side of a dental practice.
I assist dentists in achieving this freedom through the Profit First system. If you’re curious to learn more about balancing profit and growth, visit www.profitfirstdentist.com and tap the 'Free Resources' tab to download the first two chapters of my book for FREE! Let’s explore how you can grow your practice!
-Barb Stackhouse, RDH, M.ED.
Mastery Profit First Professional
"I’m Barb Stackhouse, author of Profit First for Dentists. You might recognize me as the professional behind the Profit First approach for dental practices. I’m passionate about helping dentists implement this effective cash flow system, which is why I wrote the book. My goal is for more dentists to read it and integrate this system into their practices because it genuinely works."
-April Stroink, BComm, RHU, EPC, PFP
Advanced Profit First Professional
With over 25 years of financial expertise, April Stroink helps in transforming the financial health of dental practices across Canada. As an experienced Profit First coach, April is committed to helping you increase your profits, optimize your cash flow, and achieve financial peace. She believes that your business should enrich your life—enabling you to create the life and business of your dreams without compromise.
