Sometimes the way practices analyze their financial health may sound a bit like the way Harry Caray famously called a Cubs homerun – with a bit of uncertainty until you actually see if the ball made it out of the park! With your practice management software, your CPA, and some third-party statistical services, it’s easy to assume your accounting procedures are accurate and your financial figures are relevant. However, if you do not analyze some of the nuances within your practice management software, you may be left saying “Holy cow!” Reviewing your financial health from an accounting perspective will ensure accuracy in figures and practice patient accounting procedures, which will lead to more accurate management decisions for your practice. The goal is to establish policies, benchmarks, and comparisons so you can then determine how to improve upon or maximize your cash flow and ultimately increase profitability.
Learning Objectives:
After this lecture, attendees will be able to:
Define components of the financial fitness that should be monitored on a monthly or quarterly basis.
Calculate ratios used to measure your practice’s financial success.
Explore potential for distortion of financial measurements.
