Cash Flow

Health Savings Accounts (HSA) have gained popularity as a way to compensate for higher deductibles and out-of-pocket expenses related to Medical Insurance.  Think of an HSA as a medical savings account.  Your contributions are tax deductible, grow tax deferred, and come out tax-free when used for eligible medical expenses. 

Buying a dental practice can be a lot to take on; the new practice owner suddenly has the responsibilities of running the practice stacked on top of doing great dentistry.  The financial realities quickly become an important priority in your practice and personal life. 

People are generally holding more cash than usual right now, having reacted to COVID’s effect on the market and the economy, uncertainty about the election, and the feeling that there’s safety and security in cash.  

Financially, it has been an unusual and stressful year.  We are doing a series of “check up” articles to look at different areas of your finances to see what has changed, and what you might need to check up on to be sure your financial plan is still on track.  The focus of this post is cash flow;  many clients’ cash flow was affected significantly this year

Those who applied for the $10,000 EIDL Advance several months ago are receiving their SBA offers of the official EIDL loan and aren’t sure whether they should take it.

When MFP builds financial plans, we usually create a model that assumes clients maintain their current standard of living throughout their life.  Our models adjust for: kids moving out, loans paying off, post-retirement projects, big purchases, and/or travel.

Recently, our lives have been consumed with helping clients navigate PPP, EIDL, FMLA and PUA – the various government programs available for small businesses affected by Covid-19.

Managing cash flow is key to being a financially healthy business.  Most dentists know their monthly cash flows, with a keen awareness of when payroll, credit cards, rent, labs and the other big bills are due each month.  But managing cash flow is not just about increasing next month’s production or reducing expenses.