Track goals. Visualize, compare and monitor metrics and KPIs that drive growth for your practice.
There are two ways to create more profit within your organization. Either you must cut costs or you increase revenue.
“Look everywhere you can to cut a little bit from your expenses. It will all add up to a meaningful sum.” - Suze Orman
We, as dentists, have always approached accounting from a cash basis. This means that we recognize expenses as they are paid out and revenues as they are received. The problem with this method is that we are always tracking “trailing” numbers. The expenses are not realized until weeks, or even months, after the expense has actually occurred.
Example….XYZ Dental spends $12,000 on dental supplies for the month of January. However, they only produced $100,000. XYZ Dental has spent 12% of their revenue on dental supplies (the ideal benchmark is 5-6%). XYZ Dental does not receive the bill from their supplier for 30 days. By the time they receive this bill it is far too late to make any corrections in the practice, thus ensuring that the practice has spent double what it should on supplies while going completely unnoticed until it is too late.
=There is another way!!!! What if you could easily track expenses in real-time? This means that we track our expenses as they happen (essentially this is accrual accounting). Knowing these metrics gives us incredible control of our business.
“If you do not control your business, your business will control you.” - B.C. Forbes
Control your key overhead metrics in real time and compare them to national benchmarks.
This includes staff , marketing, office supply, dental supply, and facility costs.
Watch these numbers adjust in real-time compared to your monthly collections. This allows you to track your total practice overhead and make real-time, in-month adjustments. You now will have TRUE control of your overhead.
Adjust the benchmark percentages to fit your practice and your goals.