Financial Solutions for Veterinary Practices

Lead Your Veterinary Practice 
to a Successful Future

Veterinary practice ownership and management demand a broad skillset. While compassion, caring, and high-quality care keep clients coming in the door, practice owners also need business acumen, leadership, and team-building skills.

Thriving in veterinary practice means consistently achieving goals and growth. On one hand, it requires flexibility, innovation, and creative thinking. On the other—financial practicality and attention to detail. That is why it’s important to have trusted professionals to help you achieve the best results.

Profitability and economic sustainability are essential in every business. A thriving balance sheet keeps the clinic doors open, and supplies exam rooms and labs with state-of-the-art equipment to enhance patient care. Your clients and patients rely on you to stay in business, and that requires healthy finances.

What role do we play in your success? Our team of experienced and skilled accountants will keep track of your finances, help you manage overhead, increase revenue, and ensure you are utilizing every tax savings opportunity.

The cost of labor is one of the toughest expenses to manage but a significant area of opportunity for increasing profits.

So where should you start? Though it might sound daunting, simply being intentional about how you view and manage labor is the first step. It doesn’t have to be complex but being thoughtful and planning ahead can have a significant impact on profitability.

Steps to Effectively Manage Labor:

1. Have the Right People Doing the Right Jobs. One of the keys to the effective management of labor is making sure you use your human resources wisely, and that means making sure the right team members are doing the right jobs.

2. Schedule Labor and Review It Weekly. In veterinary medicine, labor is often scheduled based on the hours the employees need to work. However, this approach often leads to inefficiency. For example, from noon to 2 p.m., doctors are often catching up from surgery and doing callbacks, but during that time the non-DVM staff is likely not kept busy.

3. Keep Your Existing Talent. The cost to hire and train new talent is staggering. Instead, hospital owners and practice managers should focus on retaining current employees.

4. Budget for Raises. When it comes to giving pay raises, many veterinary hospitals simply go with a gut feeling or determine wages based on historical numbers without any rhyme or reason. Raises can be included in a hospital’s budget. To do so, owners and practice managers should first project their revenue for a given period. The next step is to determine the existing cost of labor and add the percentage of the raise. This method helps ensure that your labor costs are kept in proportion to your revenue.

5. Increase Your Revenue. If you are overstaffed but are reluctant to cut back hours or let anyone go, one option is to grow your way out of the excess labor burden by increasing revenue.

Steps to Increase Revenue:

By ensuring your hospital is capturing its revenue, you are in essence gaining more money with which to pay employees. Between 5 and 10 percent of all veterinary services rendered are not charged. If a hospital was intentional about charging for those services performed, the hospital’s overall revenue would increase.

1. Over 40 percent of pets have at least one past-due exam reminder. This may seem like a small issue, but it can have a significant effect on revenue

2. Before clients leave the office, make sure they schedule the next appointment. Implementing forward-scheduling will promote better overall patient care and lower the expense that comes from following up with past-due patients. Additionally, forward-scheduling will decrease the amount of phone traffic at the front desk, allowing staff to engage with clients and improve the overall client experience.

These are just a few examples of how we can assist your practice to achieve your goals. Our firm’s mission is to help veterinarians like you be successful and profitable. Our consulting, accounting and taxation services are customized to meet the specialized needs of your veterinary practice.  Give us a call or request information by clicking the button below:  407-650-9088.

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