In large health institutions, such as hospitals, it is common for there to be a team especially dedicated to the financial part. In offices, on the other hand, many times it is the doctors themselves who accumulate functions, take care of the bills and do not always know how to do it in the best way.
Given the overload of visits and various management activities, health professionals can end up neglecting this essential task, losing a bit of the notion of what their main expenses are, how much they are producing and if they are making losses. That is when a problem begins to arise, because this type of information is essential for the organization and success of any business, and with a practice it is no different.
A business that does not pay due attention to finances can result in forgetting or ignoring tax payments and even the preparation of projections of expenses and profits, resulting in a great lack of predictability, in addition to possible interest and fines.
How to organize the accounts? finance tips for doctors
Now that you are fully aware of the importance of finances for healthcare professionals, we have selected some tips to help you maintain financial balance in your practice. Visit here for accounting for doctors
- Keep personal and professional expenses separate
Mixing personal accounts with professional ones is a very common mistake, especially for those who are opening a practice and taking their first steps as a self-employed professional. When viewing your accounts, can you differentiate which ones correspond to your expenses and which ones belong to the office?
To have a better notion of your earnings, you need to be able to separate these two types of expenses. This action will be beneficial for both the company accounts and your personal accounts, as this way you will be able to have an idea of your monthly capital without compromising the company accounts.
The first step is to create a bank account with RUT of your office. Later, you can establish a type of monthly “salary” which you can withdraw from time to time.
- Record the cash flow
Recording the sums that enter and leave the box is essential for any company. The cash flow is used to know the assets (profits) and liabilities (expenses) that a business has in a certain period of time.
Through this record of all financial transactions, you will be able to project and calculate the balance of the office, in addition to maintaining the working capital, that is, the difference between the available resources and the sum of the expenses that must be paid.
You should include everything you received and everything you paid for in your cash flow, even if it seems insignificant or small to you.This is also a great way to find out what your main sources of income are and what services or procedures are generating the most profit for you.
Do you know where all the money coming into your practice comes from? Identifying those activities, services or procedures that generate the most income, as well as the profiles of the patients, will allow you to better plan for future investments.
Fixed and variable costs
- Know your fixed and variable costs
To gain more control over his practice’s finances, the physician also needs to understand the difference between fixed and variable costs. Knowing these two concepts will allow you to foresee future expenses of your company and program your next months.
Fixed costs are all those that are not directly related to the number of patients served, but are present every month, such as the rent of the office, and the salary of your work team. On the other hand, variable costs change according to the number of patients and procedures performed, including, for example, disposable materials and medications.
If you notice that you purchased a certain number of materials in the last few months, for example, you can assume that a similar amount will be needed in the following months. In this way, you can schedule to make a larger purchase or choose to do it on a quarterly or semi-annual basis, thus also increasing the chances of getting a discount with suppliers.
- Prevent the unforeseen
The unforeseen happen. And, when it comes to finances for doctors, the best way to prevent them is by having a financial reserve. That is a golden rule, which applies to both your personal and professional life, and is of great importance in both cases. Your financial reserve can be made in a company savings account, although there are also simple investments that yield a little more.