Do You Struggle With Budgeting?

Budgeting is no easy task. It is cumbersome, slow, frustrating and most often wrong by the time you finish with it. Most of us are really bad at budgeting, therefore we avoid it like the plague. But we should all agree that budgeting is very important and quite frankly a must when running a business. The way that I’ve approached budgeting for the practice over the years is by keeping it as simple as possible. And then, once I’ve mastered the simple, or at least feel comfortable, I’ll add another level of complexity. If you are feeling a overwhelmed about this budgeting thing, I’m gonna share my KISS budgeting process. Hopefully, you’ll realize it isn’t that difficult So here we go. EXPENSES Start by determining your expenses for the previous year and write that number down. Some people include only the operational cost (ie rent, employee salaries, advertising, medical supplies), while others include owner’s salaries, malpractice health insurance etc. Because we are keeping it simple, we are not going to debate which one is better than the other. So pick your total yearly expense number – whatever that may be – and don’t worry about which one has more merit than the other. FORECAST Think hard about the year ahead. Do you think you will spend more or the same amount of money in the coming year? Things to consider that will increase cost: moving the practice, adding staff, adding a physician, buying equipment, advertisi...
Source: Pediatric Inc - Category: Pediatricians Authors: Tags: Cost Lessons Revenue The Business of Medicine Budget KISS medical private practice Money Money Management Source Type: blogs