Trouble signs - How do you know when your practice is in trouble?

Here are some key indicators of practice success (and failure). Although mostly you're focused on your patients, you should be checking these indicators frequently to be sure your practice is doing well.
1. Accounts receivable. Run an accounts receivable "aging" report at least monthly. Check the columns that show amounts outstanding for 60, 90, 120 days. If these amounts are growing, you are working hard but losing money! Take action immediately! (More on this in a later blog.)
2. Increased overtime by staff. If your staff are not able to complete their work during the day, don't give in to the "we need more help" plea. It is more likely that they need to work smarter, not harder. Look at your processes and see if you can find better ways to do things. Use technology wisely; it's your friend.
3. Rising overhead. When you review your financial statements every month (you DO, don't you?), be sure to get a report that shows each expense as a percentage of sales. Compare to the previous month. If miscellaneous expenses, for example, are increasing as a percentage of sales, you may need to monitor more closely.

(More in the next blog....")

For more information on processes, purchase The Practice Manual and start working smarter.