In 2026, running a dental clinic is more rewarding than ever. But one thing hasn't changed: the "Feast or Famine" cycle. One month you are issuing progress claims for three major surgeries; the next month, the projects are stalled at council, and the clinic is silent.
This "lumpy" cash flow is the primary cause of stress—and often clinic failure—in the dentistry sector. If you don't manage the peaks properly, you'll be too vulnerable during the troughs.
Your team is your biggest expense during long clinical phases. Instead of seeing your bank balance as "spending money," view it through the lens of your next payroll.
Many dentistry sit on unbilled hours "just in case" the patient queries the fee. In 2026, the cost of holding capital is high. If you have $50,000 worth of clinical time that takes 6 months to bill, that $50,000 is Work in Progress (WIP)—dead money sitting in your tracker.
💡 Note: Aim for high WIP turns. This means you should bill for work as quickly as possible. Don't wait for a milestone if the work is done and can be claimed as a progress payment.
A cancelled project from a wholesaler isn't just an empty drafting table; it's a cash flow killer. In 2026, every top-tier partner must use a deposit or retainer system.
Fill the "Famine" months with strategic clinical services. Instead of broad discounts (which kill your clinic's brand), offer added value. For example, "Book your master planning in July and receive a complimentary sustainability audit worth $2k." This protects your cash flow without training your clients to wait for a sale.
Our accountants help dental clinics build robust cash flow cushions and transition to more clinical income models. Take control of your firm's finances today.
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