If your dental practice feels broke, despite decent production or a clean P&L, you’re not alone. At the Dental A Team, we call this problem “Cash Flow Row,” and it’s one of the most frustrating places for a dentist to be.

Kiera Dent and Dental A Team consultant Kristy Treasure break down real client case studies (identifying details removed) and walk through the exact steps we take to diagnose and fix these cash flow issues. Whether your production is high and your bank account is low, or your numbers simply aren’t adding up, this is your go-to guide to figure out what’s actually going on.

Step 1: Find Your Profit Point (a.k.a. Your “BAM”)

Your Bare A$$ Minimum (BAM) is the baseline amount your practice must collect every month to cover core expenses: rent, payroll (including paying yourself), supplies, utilities, and loan payments.

This is your starting point. Without knowing your BAM, you’re flying blind.

Tip: Pay yourself like an associate, even if you’re not profitable yet. Add that amount into your BAM so you’re building a sustainable business model from the start.

Step 2: Know If It’s a Production, Collections, or Spending Issue

Every time we hear a doctor say, “I don’t know where the money is,” we immediately run this checklist:

1. Are you producing enough?

Use your BAM as your production baseline. Ideally, you want to collect 10–20% more than your BAM so you can maintain profit margins, pay yourself, and save for taxes.

If you’re not hitting your production targets, it’s time to:

Check your diagnostic rate (are you diagnosing enough?)
Review your case acceptance (is your team presenting treatment effectively?)
Audit your block schedule (do you even have one?)

2. Are you collecting what you produce?

Your collections rate should be 98%+ of adjusted production. If it’s lower:

Review your AR (if you have more than one month’s production sitting in AR, you’ve got a problem)
Tighten up insurance processes
Improve patient balance follow-up
Train team members with clear verbiage to confidently collect

Kristy shared how one office manager collected over $30K in under a week just by picking up the phone with support from her consultant.

3. Are you spending too much?

If you’re producing and collecting, but your practice feels broke regardless, it’s time to look at expenses.

Common culprits:

Equipment or subscriptions you’re not using
Over-hiring
High lab or supply costs
Loose budgeting habits or lack of tracking

It’s not always fun, but smart CEOs trim the fat BEFORE it becomes a survival issue.

Step 3: Implement a Simple Cash Flow Strategy

Once you’ve identified the issue, here’s how we help clients move forward:

Clarify profit goals (e.g., 20% leftover cash flow after overhead and owner salary)
Create multiple budget tiers (conservative, current, and growth-based)
Plan for taxes — that 20% profit is taxable!
Review unscheduled treatment — your next production boost might already be diagnosed

And if layoffs or cutbacks are necessary, we walk you through that too, with compassion, strategy, and leadership.

Get Your Finances Together

Many dentists are flying blind with their finances, and it doesn’t have to be that way. Our clients have said the moment they finally understood their financial picture was the moment they could breathe again.

Whether your practice feels broke due to a production, collections, or spending issue, the first step is to look at the numbers. The second step? Reach out for help.

Let’s take a look at your practice. Schedule A Free Call today!

For more tips, check out our podcast.

Last updated: August 2025
Written by Jacintha Ham, Dental A Team

Why Your Practice Feels Broke (Even When It Shouldn’t)