Managing accounts receivable

Managing accounts receivable

source-image
Jan 01, 2007

Q How do the levels of accounts receivable compare in a companion animal practice to an equine practice? What's a reasonable level of accounts receivable for both?


Denise Tumblin
"Ideally, accounts receivable will represent no more than 1.6 percent of annual revenue in a well-managed companion animal practice," says Denise Tumblin, CPA, president of Wutchiett Tumblin and Associates in Columbus, Ohio. "In a well-managed equine practice, accounts receivable typically represent 10 percent to 11 percent of annual revenue." To calculate your percentage, she says, divide your total accounts receivable by your annual revenue.

Hot topics on dvm360

Vetcetera: The complex topic of canine fear-related aggression

A guided tour of resources for addressing this popular and complicated subject, featuring advice from Dr. John Ciribassi.

Reality TV and the veterinarian: Discussing mainstream dog training advice with clients

Your clients may be getting behavior advice from cable TV. Get your opinion in the mix.

Blog: Election results pose obstacles for veterinary prescription law

Flip in U.S. Senate's majority may slow progress of Fairness to Pet Owners Act.

The war between shelters, veterinarians needs to end

Despite practitioners’ legitimate gripes, they’re hurting themselves.

7 steps to a better relationship between veterinarians and rescue groups

A DVM in the city shares his advice to veterinary practices for working with rescues.