Concerned about rising expenses in your veterinary practice? In many practices, the increase is often due to inventory costs, says Veterinary Economics Editorial Advisory Board member Denise Tumblin, CPA, owner of Wutchiett Tumblin and Associates. According to Tumblin, high inventory costs are often a result of three factors:
Low markups. Are you charging enough for your products and services? Look at what other practices in your area are charging and adjust your prices accordingly.
Unbilled inventory or services. What looks like an expense problem could actually be a revenue problem if missed charges are slipping through the cracks. Find these missed charges and plug the holes in the bucket.
Low turnover/overstocking. How much inventory do you have just sitting on the shelves? Perhaps you should adjust your ordering schedule, or even cut down the amount of products you carry. For example, if you carry seven antibiotics, could you reduce it to five? Or even three?
A few simple inventory tweaks in these areas can help control these costs and help get your practice's finances back under control.