• Accurate bookkeeping with full accrual accounting on a monthly basis
Accrual accounting is one of two accounting methods, the other being cash accounting. Accrual accounting measures the performance and position of a clinic by recognizing economic events regardless of when cash transactions occur. This method allows the current cash in & out to be combined with future expected cash inflows & outflows to give a more accurate picture of a clinics current financial position.
• P & L reports
The profit and loss (P&L) report is a financial statement that summarizes the revenues, costs, and expenses incurred during a specified period, usually a July 1st to June 30th financial year. These reports provide information about a clinics ability or inability to generate profit by increasing patient consultations & other services, reducing costs, or both. Budget, balance sheet & cash flow.
• KPI monitoring
KPI monitoring refers to all the tools and methods clinics use to monitor their performance metrics. Measuring key performance indicators (KPIs) involves capturing the specific data produced by processes and converting them into useful metrics that can be measured and reported. An example of a KPI would be tracking the new patient inquiries per week, then tracking how many of these convert to making a new patient appointment, then tracking how many of these show up. Going one step further you would track the average amount each new patient would spend in your practice.
• Monthly meetings to assess all the above
I cannot stress how important these monthly meetings are to assess where the clinic is at. Make sure you set an agenda for the meeting & have clear action steps post meeting to make sure what has been discussed to be implemented gets done. Also, make sure you allocate each of these action steps to a staff member who is then responsible for that action step/task & keep them accountable.