Why is the Statement of Cash Flows (SOCF), which is crucial to evaluating the health of a dental practice, seldom used? The SOCF is one of the three financial statements the dentist (or any business owner) should be reviewing, but tends to skip over. The other two statements are the Balance Sheet and the Income Statement (Profit and Loss). Why not rely on the "bottom line" of the Income Statement? Can't this show the health of a dental practice? The "bottom line" or net income on the Income statement is usually one of the first things the dental practitioner will look at. However, this is not the full picture. The income statement is on the accrual basis, not cash basis. This means re
Personality red flags of a person that would steal from a dental office.
