Practice Advantage

Focus On Financials Part 1 with Bryan Hoban

Episode Summary

Practices live and die by their financials, yet reviewing a business's finances can be overwhelming or get put off to the side. This episode is Part 1 in fixing that.

Episode Notes

On this episode, we chat with HEA+PECAA's EVP for Member Business Advisors Bryan Hoban on the importance of diving into your practice's finances, what numbers to look at, and how to begin budgeting for 2022. 

Key Takeaways:

1. Avoid the elevator analysis. If some data metrics are up, avoid immediately jumping to things being good. It is critical to ask why and understand what reasons revenue is up or another metric has improved. Data tells a story. Knowing the whole story gives you confidence to make the right decisions for your practice
2. Set aside 30 minutes each month to review your financials monthly. Put the previous months side by side and look for what jumps out. Spend more in depth time quarterly with your numbers.
3. Key Data Points to Review:
4. Any improvement in any of these key metrics hits the bottom line
5. Budgeting is critical. Begin with your P&L and adjust for a set amount of growth. Build in COGS, staffing, administrative expenses and build in as percentage of new revenue. From there, fill in other static expenses. Build in any other known big variable expenses you know will happen in 2022.

What Bryan is reading:

• Make Your Next Shot Your Best Shot by Dr. Bob Rotella

Email Dr. Manning to get ahold of our free budgeting template!