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3 Steps For Using a Budget to Meet Your Practice’s Financial Goals

Skytale Group is the leading healthcare financial consulting company. We provide strategic financial consulting services for dental and med spas.

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3 Steps For Using a Budget to Meet Your Practice’s Financial Goals

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  1. 3 Steps ForUsingaBudgettoMeetYourPractice’s Financial Goals When we say theword “budget”toourclientsforthefirst time,weget oneoftwo reactions.Eithertheireyes glaze over, boredatthemention ofthe word, ortheireyes widen with a sense of impending doom. We know it isn’t everyone’s favorite topic, but if you give budgets a chance, they can be one of the simplest tools you can implement to get yourpractice on itsway tomeeting(andevensurpassing)financialconsultingservices dallas. Let’s discuss three steps to take with a simple month-by-month estimate of your income, expenses,andprofit foraone-year period tohelp youshapethefutureof yourbusiness. Step1:Setrevenue goals Inbudgeting, it’simportanttothink throughtherevenue estimate. In doingso, you’ll inadvertently setrevenuegoals.Todothis, westart by askingquestions. Ifyouwantto generate$100,000in collectionsnextmonth,HOWareyou goingtoget here?Is itrealistic? How manypatientswillwalk throughyourdoor on adaily basis,and howmuch revenue willbe produced onaverage, fromeachpatient? By usingyourownhistoricalrevenuepervisitandvisitsperday figures, youcan plan for your next year’s revenue. Do you plan to see more patients? Increase fees? Open more days?Allof thesedecisions willbeconsideredasyouworkthroughyourrevenue projections.The resultwillbe amonth-by-monthrevenue goal, andhowyouexpect to makethat happen, andmight looksomethinglike this. “Iwillsee250patients,willaverage$400incollectionsforeach, foratotalof $100,000in revenue,permonth.” Remember to plan for holidays and vacation days. If your providers take two weeks off in July,youcan’t expect July’srevenuetolooklikeJune’s.

  2. Step2:Planfor expenses Budgetingforrevenueandexpenseshelpsyouunderstandarguably themostimportant factorstorunningabusiness: DoIhaveenoughmoney? Am Imakingaprofit? Once you’ve determined your revenue, use historical financial assessment dallasto predict your monthly expenses. Some expenses will be the same each month, like rent and payroll. Reviewlast year’sfinancialsmonth-by-monthtosee what coststendtobeconsistent. Others,likesupplies, willvaryasyourrevenue does.Asyourrevenue increases,these costs willgoup. Onceyouhave yourexpenses mapped out,youcan see what’sleftoverand determineifyouhavewhatwebelievetobeoneofthebestphrases infinance:extra money. Withyourextramoney, can youaffordtomake the additionalinvestmentsyou’ve wanted in yourpractice? Perhapsyouhireapracticemanagerorexpandintoanewoperatoryor treatment room. If you don’t have extra money, you have a simple question to answer: do youcutcostsorincreaserevenue?It’salwaysbettertoknownowthan afteryou’ve overspent. Learn moreaboutSkytale.

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