Finance and valuation
Practice budget
A practice budget is a plan for expected income and expenses over a period, such as a month or a year, that the owner compares with actual results.
An ADA new-dentist article says that after an initial acquisition you will need to estimate an operating budget, and that until the practice earns enough to cover it, you will likely rely on other funds such as a line of credit or personal savings. The SBA likewise lists capital expenditure budgets and forecasted financial statements as parts of a plan. A budget lists the main income and expense lines, often from last year's profit and loss statement, and sets an amount for each. Each month the owner compares actual figures with the plan and asks why they differ. A budget supports cash flow planning and a business plan.