How to Compute Net Cash Flow

Managing “by the numbers” is essential to planning, achieving and documenting practice growth. The first number to compute–and the best barometer of the health of a practice–is net cash flow. Here’s how to compute it and why it’s important.

As practice CEO, an optometrist always should have the practice’s net cash flow top of mind. Computing this is simple: Add up collected revenues, subtract operating expenses (before debt service and personal compensation). What’s left—