Podcasts

How to Create a Simple Practice Budget

July 11, 2018

This is Podcast #2 in the six-part ROB series “Manage Your Practice Like a Professional” with Michael Kling, OD.

Creating a practice budget and reviewing it every 1-3 months allows you to accurately set earning goals and manage expenses. Adhering to a budget enables you to make data-based decisions on investing in your practice to enhance patient care and increase profitability. Also, a practice that runs by a budget has a higher valuation to potential buyers. Michael Kling, OD, founder and CEO of Impact Leadership, shares his insights, and provides templates to help you get started.

CREATE A SIMPLE BUDGET. Create a simple budget by organizing it into one income source and four basic buckets of expenses: cost of goods, people, places and things.

KNOW WHERE YOU’VE BEEN TO SEE WHERE YOU’RE GOING. Compute your spending and earnings  for the past year, then compare that to your metrics for the past 1-3 months. If needed, make adjustments to meet your growth targets.

INCREASE PRACTICE VALUE. Potential buyers will be leery of a practice with no financial controls in place, that can’t tell prospective buyers exactly how much money was spent and earned over the previous year.

 

DOWNLOAD BUDGET TEMPLATES

Simple budget template for you to fill out

Example: Budget, goals exceeded

Example: Budget, goals not met   

Instructions

 

OTHER PODCASTS IN “MANAGE YOUR PRACTICE LIKE A PROFESSIONAL”  

Click HERE to listen to Podcast#1:   “How to Be the Practice CEO”

 


Michael A. Kling, OD,
owns Invision Optometry in San Diego, Calif., and is founder and CEO of Impact Leadership. To contact: dr.kling@invisioncare.com

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