Evaluating Your Medical Practice’s Operating Costs
You’ve put a lot of work into growing your successful doctor or dental practice, and your financial balance sheet shows your business is making a healthy profit. However, those numbers can sometimes be deceiving. A large number in the profit column may prompt you to think you’re at peak profit. Well, that is until you take a closer look at expense numbers. In addition to providing excellent tax services, CPA Solutions is an Orlando CPA service with years of expertise in finding hidden costs and being an advocate to businesses.
Are Hidden Costs Hurting Your Bottom Line?
Big revenue numbers are impressive, but there are always costs involved in obtaining those numbers. In addition to standard operating and marketing costs, you must go deeper and look at smaller, easily-overlooked costs. These smaller costs are important to look at because they can eat away at your bottom line without you realizing it.
Costs that you should pay attention to are:
- Lab fees
Supply Chain Waste
Chances are that over the course of time, your medical practice has relied on quite a few vendors to provide equipment, tools, furnishings, and supplies to keep your business operating smoothly. By now, it’s become habit to automatically order from these vendors – it’s just the way things are done. When these small orders are examined with the objective, expert eye of an accountant, there are usually lots of unnecessary costs due to a lack of oversight.
Some vendors charge more than others for the same items, and some vendors value customer loyalty more than most. Your practice can reduce these hidden supply costs by sticking with lower cost vendors who are willing to offer volume discounts to long-term, loyal customers.
Lab fees are a necessary cost of operating a successful medical practice. Most likely, you’ve found a lab you’re comfortable with and use them regardless of their level of service quality. There’s no law that says you must use the same lab, regardless of how many mistakes are made. Mistakes cost money, and it may be time to find a new lab partner that delivers what it promises – top-rate quality.
The staff you hire and work with each day is an essential part of your practice. Each staff member brings a certain amount of value to your team. Evaluate your staff and reward those who are the best team players, do great work, and get along wonderfully with patients and co-workers. Give raises and perks to these winners, and let others work towards meeting team goals.
Want to Find Hidden Costs?
CPA Solutions is an Orlando CPA firm that can help you find those hidden costs so you can increase your bottom line. Contact us today to get started.