---
title: "What Is Cash flow? Dental Practice Glossary | Copeland Consulting Services"
description: "Cash flow is the movement of money into and out of a practice over time, showing whether cash received covers the bills coming due."
url: https://joncopeland.multisites.ai/glossary/cash-flow
publisher: Copeland Consulting Services
email: drcopeland@joncopelanddds.com
contact: https://joncopeland.multisites.ai/contact
---

Finance and valuation

# Cash flow

Cash flow is the movement of money into and out of a practice over time, showing whether cash received covers the bills coming due.

The SEC's building-block guide says a statement of cash flows reflects how cash moves in and out of an entity from cash inflows or receipts and cash outflows or payments. A practice can be profitable on paper and still run short of cash if patients and insurers pay slowly. That is why [accounts receivable](https://joncopeland.multisites.ai/glossary/accounts-receivable) and [days sales outstanding](https://joncopeland.multisites.ai/glossary/days-sales-outstanding) matter. The SBA also lists cash flow projections as part of a business plan. A forecast helps an owner see when payroll, loan payments and taxes will fall due. Owners often keep enough [working capital](https://joncopeland.multisites.ai/glossary/working-capital) to cover the gaps.

[Next stepPractice consulting with Dr. Copeland](https://joncopeland.multisites.ai/contact?topic=consulting)

## Related terms

-   [Accounts receivable](https://joncopeland.multisites.ai/glossary/accounts-receivable)
-   [Days sales outstanding](https://joncopeland.multisites.ai/glossary/days-sales-outstanding)
-   [Working capital](https://joncopeland.multisites.ai/glossary/working-capital)
-   [Practice budget](https://joncopeland.multisites.ai/glossary/practice-budget)

## Sources

1.  [SEC, What is a statement of cash flows?](https://www.sec.gov/files/cash-flow-statement-bblocks.pdf)

## Talk with Dr. Copeland

[Contact Dr. Copeland](https://joncopeland.multisites.ai/contact)[Email](mailto:drcopeland@joncopelanddds.com)