Available Cash
Today’s date: 2024-10-18
Understanding and Improving the ‘Cash Available’ KPI in Dental Practices
The “Cash Available” KPI is calculated by adding up the balances of all accounts marked as “Cash.” This crucial metric helps assess the financial health and liquidity of your dental practice. Below, we breakdown the calculation, importance, and ways to improve this KPI.
Cash Available
The “Cash Available” KPI is designed to provide an overview of the readily accessible funds that the dental office has at its disposal.
Understanding Cash Available
To calculate “Cash Available,” sum up the balances of all accounts marked as “Cash”. These include:
- Checking Accounts: Bank accounts primarily used for everyday transactions.
- Savings Accounts: Accounts earning interest, yet relatively liquid.
- Petty Cash: Small amounts kept for minor expenditures.
Calculation Method
The calculation involves:
- Identify all “Cash” accounts.
- Note the balance in each account.
- Add all balances to get the total “Cash Available.”
Simple Math Calculation
Example:
- Checking Account Balance: $50,000
- Savings Account Balance: $20,000
- Petty Cash Balance: $500
Total Cash Available = $50,000 + $20,000 + $500 = $70,500
Cash Available
Calculated by adding balance of all accounts marked as “Cash”
The Importance of Monitoring Cash Available in Your Dental Practice
In dental practice management, tracking KPIs like “Cash Available” is crucial for financial health and operational efficiency. Here are some key reasons:
- Liquidity Management: Manage operational costs like payroll and supplies without disruptions.
- Financial Planning: Enable better planning for investments, expansion, and unexpected expenses.
- Mitigating Financial Risk: Identify and mitigate potential financial risks swiftly.
- Stress-Free Operations: Ensure consistent cash flow to cover expenses, reducing stress and allowing focus on patient care.
Cash Available
Calculated by adding balance of all accounts marked as “Cash”
Improving Cash Available in Your Dental Practice
Here are strategies to improve this KPI:
- Optimize Billing Processes: Implement efficient billing systems for timely revenue collection.
- Increase Collection Rate: Train staff in collections and use automated payment plans.
- Expense Management: Regularly review and cut unnecessary costs.
- Emergency Fund: Maintain a reserve fund for unexpected expenses.
- Negotiate Supplier Terms: Seek better payment terms or bulk discounts.
- Follow-Up on Insurance Claims: Ensure prompt follow-ups on insurance claims.
How Practice by Numbers Can Help Improve These KPIs
Practice by Numbers (PbN) offers a comprehensive suite of dental business intelligence tools that can significantly enhance your KPI management, including “Cash Available”. Here’s how:
- Real-Time Financial Monitoring: PbN provides real-time visibility into your cash flow, enabling accurate tracking and timely adjustments.
- Automated Billing and Collections: Integrate with PbN to streamline billing processes and improve collection rates with automated follow-ups and reminders.
- Expense Tracking and Management: Utilize PbN’s robust financial tracking features to identify and manage expenses effectively.
- Customized Reporting: Generate detailed, customized reports to gain insights into financial metrics and make data-driven decisions.
- Risk Management Alerts: PbN can set up alerts for potential financial risks, allowing you to act swiftly to mitigate them.
With Practice by Numbers, dental practices can leverage advanced dental business intelligence software to not only track and improve their KPIs but also ensure overall practice growth and efficiency.
Available Detailed Statistics
For a more detailed and monthly breakdown of the “Cash Available” KPI statistics from 2024-01-01 to 2024-06-30, Practice by Numbers users can access comprehensive reports. Below are the high-level statistics:
Percentile | YearToDate | LastYear |
---|---|---|
10th Percentile | -$127,470.74 | -$272,279.80 |
25th Percentile | $103,164.97 | $66,465.21 |
50th Percentile (Median) | $432,904.66 | $468,255.53 |
75th Percentile | $1,085,646.90 | $1,090,005.49 |
90th Percentile | $2,120,365.86 | $2,184,499.29 |