When it comes to money, you want treats, not tricks, here are a few financial tips to avoid tricks and boost up the treats in your practice’s overall finances:
- Differentiate a “Need” from a ”Want”
- It’s a bad idea to spend more than you’re bringing in. When deciding to make large equipment purchases for the practice, ask around first. Talking with your colleagues to get feedback on equipment performance can save you lots of time and money.
- Accounts Receivable
- Confirm that all employees understand and adhere to financial policies.
- Encourage employees to not be afraid to talk to patients about money.
- Regularly review A/R reports and unpaid insurance.
- Offer convenient ways for patients to make payments.
- Know your cash flow
- Pay close attention especially to things that affect the cash flow such as payroll, payables, daily revenue.
- If you must delegate your checkbook, give the responsibility to someone who you can trust to prepare the checks but still physically approve and sign each check yourself.
- Stay updated on your accounts receivable, accounts payable and the balance of your bank account on a weekly basis.
- Ensure that bills are being released on a timely basis, as delays in billing may have a negative impact on your cash flow.
- Protect your practice from fraud
- Track your daily over-the-counter collections
- Create an accounting manual that details each employee’s responsibility and require each employee to sign off as they complete tasks. It’s important to regularly monitor the manual to ensure that the dates and the numbers match.
- Disperse duties among employees in the office, unless you have a trusted spouse or family member managing on your behalf, no one person should handle multiple steps of one task. Create procedures so that every job function has to be shared by two or more employees before it can be completed. This allows employees to check each other’s work.
As an owner, you should always be aware of all the financial aspects of your practice. Don’t be tricked into losing finances. By paying more attention on a regular basis and establishing strong internal controls, you can keep your practice’s finances on the right track.