How to Improve Your Dental Practice’s Cashflow Management

Jordon Comstock


Cashflow is important to a successful business. It also can be one of the largest stresses and even more challenging for dental practices. Practices with irregular cashflow see problems in every aspect of their management, from marketing to payroll.If you’re experiencing these issues in your practice, there are many things you can do to fix the problem.

Online Payments

I recently asked some practice owners in Utah what payment options they provide for their patients. Several responded that they send patients a credit card form in the mail with their statement.

Patients fill out the form and mail it back to the practice. Some offices reported that it took 60 to 90 days to collect. Practices were waiting on the client to get around to filling out the form, while admitting that some patients are not comfortable with this process, and then get it into the mail. This method is antiquated and inefficient.

Today’s technology provides a much more viable option that allows patients to pay via your website. Then you have the funds within two to three days instead of two to three months. Start accepting payments on your website today and improve your cashflow.

Start and Grow a Reserve Fund 

Many of the practices admitted that they had no reserve funds. Building a reserve can be a difficult process to tackle, but absolutely worth it. Start small and begin to put money away for a rainy day.

This reserve then can help your practice get through slow revenue periods, help cover employee salaries, order supplies for procedures, or invest in marketing and other growth opportunities. Neglecting any of these things can result in poor service, which will drive patients to other practices. 

Put together a percentage-based budget that will guide your practice to putting funds in your reserve account each month. As you build reserves for your practice, you want to automatically grow revenue too. Look into high interest accounts that provide 2% to 3%.

A high-yield savings account can be a useful middle ground for your money, offering protection of your principal, the safety of federal insurance, and a yield that’s higher than a regular savings account, though less than you could potentially earn from riskier investments.

Just be sure to think through how one or more high-yield accounts can best serve your financial goals and situation. Then do your homework to find an account that will maximize your earnings while avoiding fees or imposing restrictions that don’t fit your needs.

Cut Out the Middle Men—Insurance Companies

Insurance companies can hurt your cashflow and cripple your profit margins. They can be difficult to work with. Plus, more than 180 million Americans don’t even have dental insurance. Many patients I’ve spoken with feel it’s a waste of money with very small benefit. 

While these issues are problems, they also can be opportunities for your practice. Some dental practices I’ve worked with see the flaws in the dental insurance system and have opted to provide an alternative via in-house membership plans.

There are many benefits to creating a membership program for your company. Primarily, it will give your practice recurring revenue every month while helping patients gain access to the dental care they deserve. It also will make patients more likely to say yes to easy and affordable dental care. 

These plans involve some setup and ongoing maintenance. Membership software options are available to help you with this process. Automate collections and collect on the first and fifteenth of each month from all of your membership patients so you have cash infusions before payroll to pay your team and overhead. You can also download this free ebook about creating and growing a dental membership program. 

Utilize Patient Financing Options

Care Credit is a financing tool that patients use to get the financing they need. It is a wonderful option and can really help your practice collect a lump sum of payments as well as help your patients receive the care they need. It should be used as a first solution to patient financing. Care Credit is a great partner and can help your practice increase case acceptance. 


If your practice is experiencing cashflow issues, I hope you’ll consider these suggestions. These ideas may not be the golden ticket to end all your problems, but they can be a great start in improvement. If you are interested in learning more about how BoomCloud can help your practice manage both membership programs and payment plans for treatment, schedule a quick live demo with our team. 

Mr. Comstock is the founder of BoomCloud Apps, a successful software company that allows dental offices to quickly create, organize, track, and automate their in-house membership program. Contact Jordon and his team at (800) 260-9285 or

Related Articles

Your In-House Membership Plan Needs a Medical Retainer Agreement

Five Reasons Why Your In-Office Membership Plan Is Failing

How to Generate Revenue from a Dental Membership Program