When you create a budget, you're simply making an educated guess about the practice's financial situation and planning for
future revenue and spending. You start with what you know (revenue and expenses from this year), then account for any changes
you expect next year to bring.
For instance, if you plan to implement your medical standards of care more consistently, revenue will grow with the improved
compliance. What happens if you don't hit your targets? Simply identify the reason as best you can, update your budget, and
keep up the good work.
Click to enlarge
|
Take a look at these statistics from Benchmarks 2009: A Study of Well-Managed Practices by Wutchiett Tumblin and Associates
and Veterinary Economics to help you budget for the future.
But don't stop there: After setting your budget for the year, take a look at what you must do to implement the changes your
budget requires. Focus on expenses that are considerably higher than Benchmarks targets. Tackle these first, and you'll see
a significant improvement in your bottom line.Keep in mind that the main reason budgets fail is that the bar is set too high. Pick two or three expenses and bring them
down, then move on to two or three more. And be sure to monitor your progress so you can see how far you've come.
Featuring Information from:
