No better time to make a financial forecast for your practice

  Posted by: Dental Design      19th September 2020

Before the pandemic struck, you may have had big plans for your practice’s growth and development, but you shouldn’t think that these will automatically need to be put on hold. That’s where financial forecasting comes in.

A question of data

Good forecasting is a question of data – gathering as much financial data as possible about your practice(s), as well as local and national market conditions, so you can make predictions that allow you to plan and give you space to make swift decisions should circumstances, either external or internal, change again.

When you have information, this means peace of mind, a benchmark to aim for and a solid basis for analysis. You can pinpoint past trends – was X treatment more profitable than Y? – and act on them, if necessary. Your practice might even outperform existing financial predictions. Perhaps you were too conservative in your estimation of how many patients would come back or commence a certain kind of treatment. If there is more demand than you expect, you will need to ensure you can cover all the related costs – materials, lab fees, clinician’s fees, etc.

Focus on your unique circumstances

Financial forecasting allows you to stay in control. Doing a financial forecast now means you can be better prepared should the unthinkable happen again. The suspension of routine services left some practices more vulnerable than others, which is why it’s important to not only be guided by the wider context, but also consider the individual, unique circumstances of your business. Focus on you, where you are now and where you would like to be, using the data available.

At Lansdell & Rose we can support you in setting realistic financial goals and help you to achieve them. We review how your finances are organised and possibly suggest how to improve cashflow – could you make changes to make your business more tax efficient, for example? Tailored advice is crucial here – not least because the media is fond of making blanket headlines that a) do not tell the whole story and b) do not apply to everyone. As a team of specialist dental accountants with years of experience and insight, any advice we give you will be specific to you, so you can pick up where you left off and continue to thrive.

For more information please visit www.lansdellrose.co.uk
or call Lansdell & Rose on 020 7376 9333.