At Dental Accountants Scotland we know that cash is vitally important and your practice needs cash to survive.
Even if your practice is profitable on paper, you can quickly find yourself in a position where you are unable to pay your suppliers or your team potentially with catastrophic results.
Our team will work with you to prepare your cash flow forecast. We can help you assess the commercial viability of the practice or a particular project. We will identify the key ‘drivers’ both financial and non financial. We would perform extensive sensitivity analysis on these projections to provide scope for scenario planning.
Effective cash flow forecasting will allow you to:
- Determine when you can expect to get paid and when you need to pay your own bills
- Assess the potential return on investment of a proposed project
- Carry out ‘what if’ analysis to measure the impact of, say, a 5% dip in fees to help you build some contingency into your plans
- Discover when there are likely to be cash shortages, giving you advanced warning to find suitable finance
- See if there is a likely cash flow surplus so you can plan in advance how to use or invest it.
Your cash flow forecast is a critical business tool.