Getting started: five essentials to monitor every month (Proceedings)

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Getting started: five essentials to monitor every month (Proceedings)

May 01, 2011

The monthly statistical analysis report

Consider developing a monthly statistical analysis report for your practice. Take a pulse of your practice by understanding the monthly statistics that are important and track them in a comparative format; month to month, year by year. The information which should be tracked comes from your computer generated monthly reports. The most important statistics are as follows:
     • Monthly gross sales- Just pull from your monthly veterinary software the monthly sales.
     • New clients- how many did you have for the month? You should be looking for 20 per full time equivalent (FTE) doctor in a companion animal hospital.
     • Number of invoices- how may were produced for the month. You should be looking for 450 per month per full time equivalent doctor.
     • Average per invoice (ACT) - This will be either on your veterinary software report or you can compute it by taking your sales for the month and dividing it by the average invoice for the month.
     • Monthly accounts receivable balances- Take this from the monthly accounts receivable aging report that you run every month.
     • Doctor production - share this information with your doctors- For each of the doctors, track their own production with their sales, number of invoices produced and their average invoice. This information is gained from the veterinary software report that tracks individual doctor production by the way the invoice is coded to each doctor. Doctor production should not include income from boarding, grooming, retail or pharmacy items unless you have agreed to pay them these items under a production based system. Typically, prescription refills are not paid for under a production based system unless the doctor is involved in the refill and has to approve it. You should be looking for each full time doctor to produce 300 professional invoices per month in a companion animal practice. They should also produce a professional invoice at 3.2 times your office visit charge.
     • Average daily sales for the month- Take the total sales for the month and divide by the numbers of days you were open for the month.
     • Average daily breakeven sales for the month- Have your accountant calculate a daily breakeven for you based upon your yearend accounting work and provide to you so you can compare it to your average daily sales for the month. This will provide you a quick comparison to daily sales and determine whether you made a profit for the month without have to look at your profit and loss statement.