How Dental Industries Can Control Cash Flow During Busy Times.

How Dental Industries Can Control Cash Flow During Busy Times.

Cash flow is imperative for the growth of any business or industry. But not all professionals are fully aware of the cash flow impact on the bottom line. That is because the importance of cash flow is much easier to identify in some professions than others. Losing control of money has caused more pain for some dentists in the dental industry than temporary red numbers on the bottom line. A practical cash management system, on the other hand, can provide an efficient life-sustaining cushion during the financial ups and down that can be expected at one time or another in most practices.

Once you understand the importance of cash flow control, it will be easier to follow the rules of good cash management. Here’s how to control cash flow during a busy period.

ESTABLISH PATIENT PAYMENT POLICIES UP FRONT

Before any patient come in for their first visit, it is advisable to ensure that schedulers establish expectations, which include:

  • The Payment methods that should be accepted such as credit cards and online payments
  • How to bill the treatments that the patient will pay out of their pocket if insurance won’t cover the full claims.
  • Patient’s responsibility to confirm the extent their insurance provider will cover for simple preventive examinations and additional services that may be necessary during visits such as X-rays

When patients are held responsible for the treatment cost before entering the office, you can reduce the amount of the account (s) that you ultimately turn over to collections, have to charge off entirely or become the past due.

INVEST IN TECHNOLOGY THAT ELIMINATES THE INEFFICIENCY OF CLAIMS PROCESSING.

Your effort to reduce the inefficiencies in billing and claim process during a busy period remains an important aspect of controlling cash flow: invest in an affordable software solution that integrates with your standard EHR software to accelerate application submission.

LEVERAGE INDUSTRY EXPERTISE

It is advisable to engage a certified and professional bookkeeper. If you are currently not working with a bookkeeper specializing in dental industry practice, you’re missing out an opportunity to learn how to optimize your processes.

Also, prepare a regular cadence on cash flow reports. Furthermore, outline the major factors that are the most important contributors to challenges of cash flow. This will enable you to be ready to course-correct and regain cash flow on track.  You may want to consider:

  • Optimizing scheduling process to minimize patient no-shows, and improve the amount of time it takes to schedule patients, handle check-in, and complete cure treatment.
  • Cross training of full-time staff to manage other tasks outside their primary duties.

Problems associated with cash flow can put your dental practice at risk and those that arise unexpectedly tend to be more costly especially in a busy period. It’s best to try these methods to reduce the uncertainty and efficiently control your cash flow. This will also help you develop an action plan when faced with cash flow constraints.


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Controlling Cash Flow During Wedding Season

Controlling Cash Flow During Wedding Season

The month of July is considered the busiest month of the year due to weddings. If you have a salon/spa, then it is evident that you are worried about controlling the cash flow.  It is imperative that you fully understand every aspect of cash flow – it is the amount of money flowing in and out of your business at any given moment. The concept has its complexity which needs to be comprehended fully to have a firm control over your cash flow. As a salon/spa professional, you need to fathom the concept of the major impact cash management has on the bottom line of your business. Here are a few tips that can assist you in controlling the cash flow of your business in the busy month of July:

UTILIZE THE MONEY THAT YOU SAVE

It is significant that you use the cash that you have saved for bad times. In busy times, you can come across cash shortfalls. You can open a Money Market Account (MMA) that offers a decent interest rate and then link the MMA with your business checking account to account for these cash shortages.

SET TARGETS FOR CASHFLOW

The most efficient way of controlling cash flow is the preparation and implementation of ‘cash flow forecast.’ Allowing you can have a close check and balance on the cash flowing in and out of your salon/spa. It will predict the possible outcomes and shortfalls.  Prepare a cash flow forecast before busy wedding months come along, this can assist you in controlling the amount of profit that you make or the losses.

MONITOR YOUR CASH FLOW ON A REGULAR BASIS

Since the month of July will be a hectic daily routine, you need to check the cash flow regularly.  Online accounting software can help you in this aspect.  Accounting software can assist in saving time, and help with all that massive amounts of work in managing the cash flow.  Start relying on technology in today’s age. A perfect control over your cash flow even in the busiest days of the year.

MAKE THE PAYMENT PROCEDURE EASIER FOR THE CUSTOMERS

Making the payment process easier will help you since you won’t have to wait for the payment to arrive in your bank account. You should encourage the customers to pay upfront or use online payment.

HAVE A CUSHION FOR YOUR BUSINESS

Having a cash reserve for your business is crucial since good and bad days can come any time of the year. Your salon/spa might be facing the busiest days of the year in the month of July, but you need to have some cash saved in case you face cash shortfalls. The cash reserves might serve as a cushion for you in case you face harsh times.

You can use the simple tactics mentioned above to control the cash flow most efficiently.  Utilize your resources and do not let the cash shortfalls diminish your high spirits.  If you would like some assistance with your cash flow please call us for a free initial consultation.  Call today at (844) 424-9637 or email us at info@stacbiz.com

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