Do you know the cost of doing business? If you don’t, you are the effect of what you don’t know. No, you didn’t go to finance schools, but the finance lines are still the most important division in your practice. By knowing the cost of doing business we mean, the profit margins, the cost per visit, etc…
This week Jon Repka from Paro is joining us to talk about finance lines and about what you don’t know. Paro is a financial services firm that has highly vetted financial professionals in an amazon style fashion with a specific division that works with private practice owners like yourselves.
- Business owners cash in and cash out without understanding the building blocks that help you get there.
- Step one is understanding er unit economics – profitability per service/per hour. If you don’t know this, chances are your financial systems weren’t set up correctly.
- Bookkeeping should also drive the front end of your strategy – the services and marketing of said services and who you market to.
- As a practice owner, you need to know how to slice and dice your business/profit and loss statement by each of these variables: by carrier, by service, by location – so you can see how your practice is performing.
- In bookkeeping – variance, p&L and balance sheet are the three most important reports
- Proper tracking of the P&L is a basic rudiment to give you the raw information, but then it
- It requires diligence to stay on top of the numbers to stay on top of the variance report to reforcast the rest of the year.
- The biggest risk of a shared risk compensation model is not understanding how your business is evolving.
- If you evolve into the hybrid model, you need to have the ability to look at in-network versus out of network business and look at everything on a consolidated basis, a solid bookkeeper can do that in their sleep.
WORTH CHECKING OUT
- Brian’s sessions at PPS 2019 on Thursday, October 31, 2019 and Friday, November 1, 2019
- Paro Website
- Episode 39: It’s all about good bookkeeping
As always, we appreciate your feedback on the podcast, if you have suggestions for topics or questions you would like answered, feel free to reach out to us directly, or if you’re interested in learning about any of our services contact us for a free, no-obligation practice assessment.
Brian Gallagher, PT is the founder and CEO of MEG Business Management, LLC. He has more than 27 years of experience in the field of rehabilitation and 19 years in business and specializes in Physical Therapy practice management and executive coaching nationwide. As a licensed business management consultant, Brian has helped hundreds of business owners nationwide improve their business operations through proper restructuring to achieve improved systems of efficiency and productivity as well as marketing and sales with effective public relations which have proven results for double-digit growth year-over-year with businesses around the country.