This article addresses reporting functionality options and how they can better assist the performance of your medical practice – enabling you to take it to the next level!
Many software accounting packages can provide cash flow reports, providing valuable data on bank balances, outstanding invoices, upcoming bills and expense claims. Which is great – if you use these reports and gain efficiencies in your day-to-day operations.
Over the last five years, we have facilitated the adoption of Cloud-based accounting software for many of our medical clients. Through our client set up process we work with clients to identify their specific reporting needs and either tailor the reports for them, or teach them how to customise the reports to suit their purposes. What we have found medical professionals find essential from these reports is gaining an understanding of the revenue performance of their practice, including patient fees generated, percentage of private billings and consultation trends. Extracting this information has been the foundation of sound financial and operational decisions.
It has also been crucial for our medical clients to keep track of the performance of their practice. In addition they have found very useful the customised reports extracted and used for detailed budgets that compare predicted performance against actual results. A through performance oversight can only be developed by extracting data across the information available within the practice, not just from the accounting system data.
Typical measures to track and report include:
- Fees per clinician per hour/day
- Average patient revenue
- Medicare reject rates
- Practice operating costs per hour/day
- Patient breakeven point
- Missed/cancelled appointments
Our medical clients derive significant insights in us meeting with them quarterly to review and analyse these reports. These insights provide our clients with opportunities to be proactive in decision-making and managing cash flow.
Our insights also provide advice on investing cash surplus including superannuation considerations and investment opportunities (building up your nest egg with passive income). We have found that the power of having current information combined with strategic plans results in real benefits.
Cloud based accounting software programs can bring many benefits to your medical practice but like any product or service you purchase you need to maximise your understanding to ensure you utilise its full potential. Our medical clients have had the opportunity to be ahead of the market by leveraging our services and expertise in this area.
Vicki Macdermid is a Private Business and Family Advisory Partner at Pitcher Partners Melbourne.