Welcome to today's episode, where we learn the ins and outs of navigating financial reports. For practice managers, understanding the numbers that drive your practice is essential for making informed decisions and ensuring financial success. Most managers have a favorite report, budget, profit and loss statement, KPI, etc. while others just go by a checking balance that “looks good.” Whatever your favorite report is, they are all important and as our guest today says, “Every report has a story to tell.”

Joining us today is Mira Johnson, a certified public accountant (CPA) and CVPM, who brings a wealth of knowledge and expertise in veterinary practice management. She is definitely a “numbers girl” and in our conversation today, she shares the most important things to remember when navigating financial reports.

Mira delves into the importance of weekly reconciliation and ensuring that all data is readily available for assessment. We explore the concept of open-book management and how understanding key financial metrics, such as the break-even point, can empower practice owners and managers to make important decisions. We know that management reports are more than just the financials, but today, let’s hone in on this important data and how we can learn each report’s “story.”

 

Show Notes:

[2:04] - Mira explains that the first step is to make sure that all data is available. To assess success, she looks at everything that a practice considers important.

[4:10] - She recommends weekly reconciliation. One of the basics for your CPA is to have access to the data.

[5:16] - You can look at the same report in different ways.

[7:20] - What is open book management and how is it beneficial? Mira explains what the important numbers are.

[9:40] - A practice is missing out if they don’t know what their break-even point is.Team cannot hit an unknown goal.

[11:34] - Mira explains how to find the break-even point in your practice.

[14:58] - It is a good idea to tie incentives to goals and new training.

[17:14] - Managers and CPAs all have their favorite reports. Debbie and Mira share theirs.

[19:04] - Once you have an explanation behind the performance, you can do something about it. But you can’t find it if you don’t understand the numbers.

[21:00] - We all learn when we implement new things. If you implement a scorecard, make the numbers understandable and achievable.

[22:11] - Look at data regularly. If you have an outside advisor, connect with them on a regular basis.

[23:33] - If you don’t have someone who does bookkeeping correctly, it doesn’t matter what data you look at since it is incorrect.

[24:23] - Every report has a story to tell.

 

Thank you for listening. Remember you are not in this alone. Visit our website for more resources.

 

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