Cash Flow Projection for PT Clinics: What It Is, Why It Matters, and How to Build One

A cash flow projection is one of the most important tools a physical therapy clinic owner can use to plan for a strong financial future. While your current cash flow statement gives a snapshot of your financial health, a cash flow projection gives you insight into what’s coming next.

As you’ve heard many times, “Cash is King.” In fact, cash flow—the money moving in and out of your business—is often the difference between a thriving practice and one constantly under stress. A strong cash flow projection helps you stay ahead of the curve.

What Is A Cash Flow Projection?

What is a cash flow projection? Simply put, it’s an estimate of the money you expect to flow in and out of your clinic over a specific period of time—usually monthly or quarterly.

A cash flow projection allows you to anticipate slow periods, plan major expenses, and avoid running out of cash. It gives you the confidence to make decisions based on facts not guesswork.

Why a Cash Flow Projection Is Critical for Your PT Clinic

A cash flow projection gives you a clear picture of:

• When money is coming in

• When bills are due

• Whether you can afford to hire, expand, or invest

Having a cash flow projection in place can help you cut costs, avoid cash crunches, and grow with clarity. A cash flow projection is your financial GPS—it keeps you on track.

How to Create a Cash Flow Projection

1. Determine Your Opening Balance

Start with your current cash on hand. Subtract last period’s expenses from income to calculate this.

2. Forecast Income

Estimate all revenue sources:

• Patient visits

• Insurance payments

• Retail sales

• Other streams

• Use historical trends to predict incoming cash.

3. List Estimated Expenses

Include every expected outgoing payment:

• Rent

• Payroll

• Utilities

• Software

• Marketing

• Insurance

4. Calculate Net Cash Flow

Subtract total projected expenses from projected income.

5. Add to Opening Balance

Add your net cash flow to your opening balance. This becomes your projected closing balance, which also serves as next period’s starting point.

Recap: 5 Steps to Build a Cash Flow Projection

1. Start with your current cash balance

2. Forecast your revenue

3. Estimate your expenses

4. Subtract expenses from revenue

5. Add to your opening balance for a closing total

Make It Visual: Use a Cash Flow Projection Chart

Using a cash flow projection chart helps you visualize cash movement across time. Whether you build one in Excel, Google Sheets, or through accounting software, a chart can help you quickly identify when you may be at risk of going negative—and when you’ll have extra cash to reinvest.

Tips to Improve Cash Flow Projection Accuracy

To create a useful cash flow projection, follow these best practices:

• Stay current with your bookkeeping

• Use historical trends for revenue and expenses

• Factor in seasonal fluctuations

• Keep your cash flow projection updated monthly

• Review it regularly as part of your admin time

A cash flow projection is never “set it and forget it.” You’ll need to adjust it when hiring staff, investing in marketing, or dealing with rising costs.

🙋 FAQs

What is a cash flow projection used for?

A cash flow projection is used to estimate future cash inflows and outflows so you can prepare for financial ups and downs, avoid shortfalls, and plan ahead.

How far out should I project my cash flow?

Most PT clinic owners create a cash flow projection for 30, 60, or 90 days. The further out you go, the less accurate it may be, so start small and adjust.

How can I make my cash flow projection more accurate?

Use historical data, update your numbers monthly, and regularly review your actual vs. projected results. The more you engage with your cash flow projection, the more useful it becomes.

What tools can I use to build a cash flow projection?

You can use a simple spreadsheet or small business accounting tools like QuickBooks. You can also download our free template that includes a cash flow projection chart to get started.

Want Help Making This Easier?

Grab our free Weekly Metrics Sheet and get a jumpstart on understanding the cash flow side of your PT clinic. Start tracking what matters most—and stay in control of your financial future.

➡️ Click here to download it.