{"id":75094,"date":"2023-10-01T00:00:36","date_gmt":"2023-10-01T00:00:36","guid":{"rendered":"https:\/\/todaysveterinarybusiness.com\/?p=75094"},"modified":"2023-09-30T18:33:05","modified_gmt":"2023-09-30T18:33:05","slug":"budget-for-success-in-2024","status":"publish","type":"post","link":"https:\/\/navc.sitepreview.app\/todaysveterinarybusiness.com\/budget-for-success-in-2024\/","title":{"rendered":"Budget for Success in 2024"},"content":{"rendered":"<p style=\"font-weight: 400;\">A wise man once said a goal without a plan is just a wish. That\u2019s why every veterinary practice should have a budget. How else will you know if you\u2019re headed in the right direction financially? Or what you will need to change to get there? Many hospital owners find change intimidating. But please give it a try. Here are five ways to prepare a 2024 budget.<\/p>\n<h3 style=\"font-weight: 400;\"><strong>1. Use Technology<\/strong><\/h3>\n<p style=\"font-weight: 400;\">Looking at past transactions, cyclical changes (mountains and valleys) and growth trends to identify solid budget numbers is time-consuming. The solution: apps, not spreadsheets. Check out Budgyt (<a href=\"http:\/\/budgyt.com\">budgyt.com<\/a>), Fathom (<a href=\"http:\/\/fathomhq.com\">fathomhq.com<\/a>), Jirav (<a href=\"http:\/\/jirav.com\">jirav.com<\/a>) or PlanGuru (<a href=\"http:\/\/planguru.com\">planguru.com<\/a>) to get started. When selecting an app, confirm that it integrates with your accounting software so the data is pulled in automatically. You should have to do little or no data entry.<\/p>\n<h3 style=\"font-weight: 400;\"><strong>2. Establish Goals<\/strong><\/h3>\n<p style=\"font-weight: 400;\">Do you hope to retire or sell your practice within five years? Are you trying to hire another doctor, or do you want to move to a bigger building, remodel your hospital or buy a new digital X-ray unit? How about becoming the go-to dentistry specialist in your town? Whatever your goals are, write them down alongside a number. For example:<\/p>\n<ul>\n<li style=\"font-weight: 400;\">Hope to sell the practice soon \u2014 increase profitability by 4%.<\/li>\n<li style=\"font-weight: 400;\">Remodel \u2014 save $65,000.<\/li>\n<li style=\"font-weight: 400;\">Open a dentistry hub \u2014 raise dentistry revenue by 8%.<\/li>\n<\/ul>\n<h3 style=\"font-weight: 400;\"><strong>3. Estimate Revenue<\/strong><\/h3>\n<p style=\"font-weight: 400;\">Revenue uses a simple formula. To increase revenue, you must see more patients, or the <a href=\"https:\/\/todaysveterinarybusiness.com\/a-balancing-act\/\">average client transaction<\/a> needs to go up. If you have days of waiting for the phone to ring, focus on the number of patients. If that\u2019s not the problem (and before you hire additional staff or extend clinic hours), look at the average client transaction instead of patient intake. In addition, remember to include fee increases.<\/p>\n<h3 style=\"font-weight: 400;\"><strong>4. Estimate Expenses<\/strong><\/h3>\n<p style=\"font-weight: 400;\">Start with the most vital expense when you allocate funds. Then consider the second item on the list, and so on. This approach will help you set aside money for the highest priorities. Remember to distinguish between fixed and variable costs. For example, how much you spend on drugs increases as you sell more of them, so the cost of goods sold is a variable expense. (Good software should adjust those numbers automatically.) On the other hand, rent is a fixed cost that remains the same whether you see 10 patients a month or thousands. Anything that repeats or is cyclical, like insurance and property taxes, should be picked up automatically with good software.<\/p>\n<p style=\"font-weight: 400;\">Finally, when estimating expenses, leave room for profit. Do not budget for negative numbers; those are losses. The only exception to the rule is when you open a new practice and budget for the first few months.<\/p>\n<h3 style=\"font-weight: 400;\"><strong>5. Review the Budget Regularly<\/strong><\/h3>\n<p style=\"font-weight: 400;\">A completed budget shouldn\u2019t remain untouched. You can tweak it as the months pass. Investigate variances to see where you overspend and why. The first budget plan is usually the worst, so get it out of the way. As time goes by, fewer and fewer surprises will pop up. If your results fall short, don\u2019t beat yourself up. Instead, stay committed to a budget and remember it\u2019s merely a tool.<\/p>\n<p style=\"font-weight: 400;\">If you don\u2019t know how to get somewhere while driving, just about any combination of roads will take you there eventually. With a well-thought-out budget, you know exactly where you want to go. Let it serve you like a map.<\/p>\n<p style=\"font-weight: 400;\">If you\u2019re unfamiliar with budgeting, consider contacting a consultant or accountant to get started. A veterinary-specific professional can provide expert guidance and ensure your budget is realistic and aligns with your goals.<\/p>\n<hr \/>\n<h3 style=\"font-weight: 400;\"><span style=\"color: #008000;\"><strong>WORK ON IT<\/strong><\/span><\/h3>\n<p style=\"font-weight: 400;\">Since payroll is the largest expense in most budgets, here are a few tips.<\/p>\n<ul>\n<li style=\"font-weight: 400;\">Include raises in budget projections.<\/li>\n<li style=\"font-weight: 400;\">Consider how employee turnover affects labor costs.<\/li>\n<li style=\"font-weight: 400;\">Revisit employee benefits, especially rising medical and dental insurance costs. Shop around three or four months before the renewal date to ensure you have time to switch.<\/li>\n<li style=\"font-weight: 400;\">Survey team members to discover the benefits they most value and appreciate.<\/li>\n<li style=\"font-weight: 400;\">Eliminate overtime pay. Consider shorter hours if your practice is short-staffed and you cannot hire more team members. Many clinics offer four-day workweeks. Some open only four days a week to support a work-life balance and avoid overtime.<\/li>\n<li style=\"font-weight: 400;\">Are you open on holidays? If you give holiday pay, make sure those days are profitable. Shortening holiday hours or closing might be more economical.<\/li>\n<li style=\"font-weight: 400;\">Remember that thinning staff hours to meet a budgeted number could devastate your income or the quality of medical care provided.<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Projecting revenue and expenses can be daunting, but a measured approach will lead you to profitability.<\/p>\n","protected":false},"author":270,"featured_media":75095,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"iawp_total_views":0,"footnotes":""},"categories":[409],"tags":[],"class_list":["post-75094","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-october-november-2023","clinical_topics-finance","clinical_topics-practice-management"],"acf":{"hide_sidebar":false,"hide_sidebar_ad":false,"hide_all_ads":false},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v24.7 (Yoast SEO v27.3) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Budget for Success in 2024 | Today&#039;s Veterinary Business<\/title>\n<meta name=\"description\" content=\"Every veterinary practice should have a budget. 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