BUDGET REALISTICALLY

Base your practice budget on real dollars. Another way to express that thought: financial planning for your practice should be based on collections, not production. Production for a given day, week or month may be significant, but it must be reduced by fees that cannot be collected, professional courtesy write offs, uncollectable insurance payment write offs, state-scheduled fees allowed on welfare patients, failed treatment that must be delivered a second time, etc. Plan your practice finances using dollars-in-hand rather than dollars charged. This year’s expenses should be planned based on last year’s collections.