$18K Practice Profit Wake-Up Call

$18k in losses is something you should know about.

Most accountants will do your books and then dump all the data in an email and send it over.

If your accountant does this, then they’ve done their job.

Who is analyzing through all the data in that email, though?

You’re a vet.

You don’t have years of experience looking over quarterly reports and analyzing financials.

If there are major red flags—what happens if you miss them?

This is what happened to a practice owner I was working with.

They believed their practice was doing well.

But they weren’t analyzing the data from their accountant.

The practice owner got the profit and loss sheets (P&Ls), and I reviewed it for them.

Red flags.

There were $18K in losses in the last year. This was a shock, especially since the past few years were profitable.

The accountant had done their job delivering the data.

But, there was no one looking close enough to see the warning signs...

Don’t miss the red flags. Ask for a second opinion when needed.

One way I track the profitability of practices is with key performance indicators (KPIs).

I list the 5 KPIs I suggest all practices implement in my Guide to Tracking Practice KPIs.