Do you ever wonder where your business’ money is going? If not, it’s time to look further. A great way to find out is by using the cash flow statement, or statement of cash flows. Along with the balance sheet and income statement, the cash flow statement will identify where your revenue is coming from and where it’s going.
Dentists have limited control over when insurance companies issue payments, or the speed at which patients pay out-of-pocket amounts. Yet their loan payments for expensive equipment and salaries for their staff are constant. To that end, cash flow is a major priority. There are several things to consider when analyzing cash flow, they are:
