In the healthcare sector, safety in relation to the steps taken can guarantee the success of your business.
Every medical practice, regardless of its specialty, wants to have a good volume of recurring revenue coming into its cash register. And it is from these numbers that the goal of having a market-leading company becomes increasingly closer to reality.
However, it is necessary to be very sure about the steps that will be taken so that the lack of good financial management does not result in the bankruptcy of a business with potential for success.
Due to the rush of everyday life, we know that issues like these are often left aside and finances are treated as just another bureaucratic obligation to be resolved.
This is where many business owners end up getting lost, but in this article, we seek to facilitate this process and give you the first steps in the best way to take care of your practice’s finances.
Understand how money moves
First of all, you need to understand how the financial flow occurs within your business.
Just like any business that is just starting out, your practice will require an initial investment and will have many bills to pay. Therefore, during this period of market entry, partners and investors can be crucial support to help your business take off.
This partnership can guarantee the necessary cash flow for the first steps of your business. With a sufficient amount for a flow that covers your initial costs, after a certain period, possibilities beyond the breakeven point, such as recovery of investment and profit, can lead to reinvestment in innovations for the location.
Furthermore, it is essential to have a good number of loyal patients. By establishing trust between your practice, the professionals working there and the patients, in addition to repeat visits, referrals and word of mouth, you can generate a significant increase in revenue.
Note all inputs and outputs
Good financial management relies on records of all transactions made with your business’ money. For example, do you know how much you spend on materials each month? How much profit do you make from each procedure? How much does it cost to maintain a full-time employee?
It may seem silly or exaggerated, but it is precisely these details that separate companies that drown in debt from successful cases.
It takes discipline and consistency to accurately record each and every income or expense. It doesn’t matter if it was to buy a pack of cotton or if it was for an appointment where the patient had dental insurance to cover the costs.
Everything must be recorded at the time it happened.
Know the exact value of each transaction
It is important to note that there is no point in writing down everything that came in and went out if it is done incorrectly. When recording, do not round numbers or, if you do not have a note, simulate a value.
In the case of clinics, where there are two types of services – those provided through health insurance and those provided privately – it is essential to ensure that consultation fees are being recorded correctly.
For example, imagine that you have a dental practice and two patients want to have their teeth whitened and one of them has dental insurance .
This means that the profit from treating this patient will be different than that of the person who is performing the procedure privately. Do you understand the difference?
There are also other factors that need attention, such as payment methods and fees included. Credit cards, for example, usually charge a fee on top of the amount being paid. And all of this must be considered when recording cash movements.
When we talk about your company’s money, every amount is important to ensure correct control of your cash flow.
Give importance to Financial Planning
Having good planning means mapping out a path for your practice to get out of the situation it is in and achieve its goal.
To do this, you need to not only have a goal, but also know what steps need to be taken. After completing the steps mentioned above, start defining what actions you will take in the future.
Make a forecast of your expenses. It is obvious that unforeseen events can happen, but having control over what is fixed will certainly make it easier to cover unexpected expenses.
At this stage, it’s also worth deciding what you can do differently. Change providers, increase the number of patients who are always looking for “ dental insurance ”, check if there is more space in your schedule… Everything counts!