1039: Metric Mondays: Why Are We Producing Well but Still Feel Tight on Cash? - Carlie Einarson

Are you producing at a high level but still feeling tight on cash? In this episode, Kirk Behrendt brings back Carlie Einarson, ACT Dental coach, to explain why strong production doesn’t automatically mean strong cash flow. You’ll learn the two metrics that reveal what’s really happening—collections percentage and AR days—plus the practical steps to tighten your financial systems so the money you’ve earned actually makes it to the bank. Listen to Episode 1039 of The Best Practices Show!

Main Takeaways:

• Strong production does not guarantee strong cash flow because production does not automatically convert to money in the bank.
• Collections percentage and AR days are two key metrics that reveal why a practice can feel tight on cash even when schedules are full.
• If you are not collecting 100% of net production, profitability is being impacted and the practice is leaving money on the table.
• Over-the-counter collections must be consistent, with confident same-day payment conversations at time of service.
• AR days reflect how long it takes to collect what you’re owed, and the goal is roughly 30 days or less.
• A clear financial policy and an AR management system reduce delays from patient balances and insurance claims.
• Improving collections systems can create a cascading effect, including healthier financial behavior, better compliance, and more consistent processes.

Snippets:

00:00 Producing a lot but still tight on cash—why this happens.

02:20 The two metrics that reveal the story: collections percentage and AR days.

04:40 What “getting it wrong” looks like when cash doesn’t match production.

05:35 Why AR days creep up and how delays compound.

07:40 What “getting it right” looks like inside a healthy practice.

08:35 Why 95% collections is not acceptable in dental practice management.

11:05 Targeting 30 AR days and tightening follow-up systems.

12:00 Moving to deposits and collecting in a more consistent process.

13:10 Action plan: financial policy alignment and AR management systems.

15:00 Where to find BPA resources for financial policies and AR systems.

Guest Bio/Guest Resources:

Carlie Einarson is a lead practice coach who has a passion for helping others succeed in the dental field. She loves helping to create a stable foundation for practices so both professionals and patients have a great experience every time they walk in the door!

Carlie graduated from Utah College of Dental Hygiene. She has ten years of experience in the dental field, including clinical dental hygiene, front office, and leading teams.

In her free time, she enjoys spending quality time with loved ones, traveling, skiing, playing volleyball, and golfing.

Resources mentioned in this episode:

• Best Practices Association (BPA) resources and guides:
• https://www.actdental.com/free-resources/

More Helpful Links for a Better Practice & a Better Life:

• The Best Practices Show: https://www.actdental.com/podcast/
• Best Practices Association: https://www.actdental.com/bpa
• Upcoming Events & Workshops: https://www.actdental.com/events/
• Smile Source: https://www.smilesource.com/
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