ABSTRACT
In reality, provided the practice maintains a good set of accounting records the preparation of the cash projection – often called a cash flow statement. The starting point for any cash projection is a budget of earnings, and initial efforts at producing one will doubtless be inaccurate although, with some practice, it is possible to become quite efficient at the task. Once the budget has been prepared, it is a simple matter to produce the cash projection by inserting the data on a pro forma, which classifies the income and expenditure by months. The sensible general dental practitioner (GDP) will prepare the budget and cash projection not simply to keep the bank manager quiet, but also for management purposes. In most instances the GDP will fix a fee scale by reference to individual circumstances, on the basis of rates charged by competitors or as recommended by organisations such as the Confederation of Dental Employers.
