Dental practices typically don't have to think about cash in the way they think about losing a team member or an unhappy patient. But having enough cash on hand can ensure the success and longevity of a practice, Levin said in the latest episode of Dental Practice Made Simple.
"If you have cash, you never have to worry," he said. "That is a wonderful way to live your life. And a wonderful way to live your practice."
When the COVID-19 pandemic hit, the government provided loans that kept many dental practices afloat. Without that support, practices would have had a much harder time weathering the closures.
Levin advised keeping three to four months of cash on hand at all times to help ride out any financial hard times. He also suggested keeping the cash in a separate account so you don't see it in your practice's regular checking information.
"If you never need it, you can always take it as income later," Levin said.
Learn more in the video below.
Dr. Roger P. Levin is CEO of Levin Group, a leading practice management and marketing consulting firm. To contact him or to join the 40,000 dental professionals who receive his Practice Production Tip of the Day, visit LevinGroup.com or email firstname.lastname@example.org.
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