Dental Financial Forecasting and Planning Services
Running a business is one thing. Accurately forecasting its performance is something else entirely. This involves predicting how a business will grow and is calculated from its current turnover and local market conditions. The more data available, the more accurately you can predict the future financial position of the company and the better you can plan for development.
Why should you use financial forecasting?
One of the biggest concerns when running a business – including a dental practice – is the question of cashflow. More specifically, the question is whether there’s enough of it. You will likely be thinking about your cashflow more right now than ever before – the pandemic has left many practices in a somewhat delicate position.
Accurate financial forecasting can provide some peace of mind. It provides a benchmark to aim for and by which to measure your progress. By analysing your previous and current finances, you can also start to identify trends. This can help you recognise any unexpected outcomes or negative developments and enable you to take action to rectify them early on.
It can also highlight when the practice is outperforming the original plan. Let’s say things are going well and you attract more new patients than you’d expected. While revenue will increase, so too will costs for products, lab fees and possibly also staff pay if individuals are required to work longer hours or the team grows. If you didn’t plan for all this, it could leave the business in a difficult situation, but being able to identity what’s happening will help you adjust.
In essence, financial forecasting means you can better keep your business on track and take a planned approach to growth that encourages long-term stability and success.
Who would benefit most?
Many dental practices should consider a financial forecast given the recent unanticipated cashflow shortages. It may be particularly useful for those who found they had little reserves to fall back on, as planning ahead will help better prepare the business should a similar situation occur in the future.
What should you do?
Effective financial forecasting will help you create realistic business goals and provide guidance on how to achieve them. Working with experts in the field will provide valuable insights into the way your finances are currently organised and how your situation might be improved. When you approach Figurit, for example, you can rest assured that all reports, predictions and guidance will be based on your specific numbers and therefore be entirely tailored to you. The outcome is greater business sustainability and enhanced confidence for you, your staff and your patients that your practice will remain in operation and providing care for many years to come.
To organise a dental expert review of your practice situation and create an accurate financial forecast for your business, just complete the form below.