Cash flow management is essential to the operation of your dental practice. Whether your goal is to create a new cash management workflow or optimize your current operations, dental practice management consultants can help you gain stability and grow your business.
This guide to cash flow management in dental practices aims to help business owners improve their financial workflows. Speak with an experienced Treasury Management consultant to learn how to change your budget, payment, and financing processes to improve your dental practice's cash flow and realize significant benefits.
1. Itemizing the Budget
Treasury Management consultants can itemize your dental practice’s budget and cash flow statements. By delegating this duty to a professional, your in-house team can focus on customer service while benefiting from a more efficient financial workflow.
A professional budgetary overview can help you estimate expenses and income and plan for financial changes. If your business can accurately predict its cash flow, it can become more resistant to market downturns.
Budget itemization starts with listing each expense, including utilities, salaries, rent, supplies, maintenance, and marketing costs, and comparing them to the monthly cash flow. A Treasury Management consultant can help you gather this information and create an actionable plan for budgetary management without taking your teams away from important tasks.
2. Renegotiating Payments and Credits
A dental practice’s credit and payment policies should be communicated clearly to patients. Treasury Management consultants can help your dental practice avoid collection delays and cash deficits by establishing clear and fair policies that meet patients’ needs without disrupting cash flow.
Credit policies commonly need to be renegotiated to improve financial performance. Still, many business owners need professional help to identify the issue and enact a new policy.
3. Deploying New Technologies
Dental practices can use modern technologies to improve their cash flow management. However, many practices are left behind by outdated and inefficient merchant services, billing processes, and cash management tools.
Modern software solutions can automate account receiving, centralize reporting tools, and reconcile balances without wasting manpower. Treasury Management consultants can help deploy the right system for your business and make sure any existing cash flow management software is updated.
4. Managing Reimbursements
Dental practices must stay updated on their insurance and reimbursement policies to ensure that changes are incorporated into their official documentation. Without proper oversight, your practice may not receive the full amount from the insurer, and your in-house team may not know how to adjust reimbursement policies to compensate.
Treasury Management consultants can assess this essential aspect of your cash flow, identify profitability issues and outdated documentation, and secure accurate fee schedules for your insurers. This process can be complex for in-house medical service providers. However, an experienced consultant can make sure your active policies are in your best interest.
5. Offering Financing
Many dental practices know the advantages of offering patient financing options but lack the knowledge to implement them. Treasury Management consultants help practices partner with outside financers to provide patients with more versatile payment options for their expensive treatments.
This benefits the clinic in two ways: first, by allowing patients to pay for treatments they may not have been able to afford otherwise, and second, by ensuring that the practice continuously receives upfront payments. This encourages consistent cash flow while helping patients get the treatments they need.
However, extending lines of credit to patients comes with risks, even with third-party financing. Doing so requires additional processes, such as a more detailed patient credit check. A Treasury Management consultant can help you set up these workflows so your practice can cater to those with financing needs without putting your cash flow at unnecessary risk.
6. Investing in Performance
Your dental practice needs to monitor essential performance indicators (KPIs), track revenue and expenses, and manage accounts payable and receivable continuously. Cash flow management is not a single-time change but a continuous improvement process involving modern performance metrics, trend analyses, and actionable analytics.
Many dental practices hire experienced Treasury Management consultants to avoid becoming overwhelmed by performance data. Consultants can refine your cash flow with modern technology, establish more efficient workflows, and invest in continuous performance improvements without wasting your staff’s valuable time.
Contact an experienced Treasury Management consultant to learn more about how these benefits can address your practice’s exclusive cash flow challenges.
Contact Woodsboro Bank to Speak With an Experienced Treasury Management Consultant About Your Cash Flow
Dental practice management consultants can provide these and other benefits to your dental practice. At Woodsboro Bank, our experienced team of Treasury Management consultants can identify bottlenecks in your financial workflows and help you invest in your future.
We itemize, monitor, and manage cash flow management processes to help businesses optimize their financial workflows. Contact our team today to learn how we can improve your dental practice’s cash flow and keep your processes up to date.