Often, we think of small business owners only traditional businesses such as service businesses, IT companies and perhaps trade companies like plumbers and pest control firms. We came across this great article on Veterinarian’s Money Digest, published on May 26, 2018, addressing the concerns of a veterinarian practice.
The article, Accounting Tips for the Busy Veterinarian touches upon 4 simple and easy accounting tips that fall squarely within the toolbox of services we provide here at Expex. We found this article to be on point and thought provoking.
Part of the expexted responsibilities of a veterinary practice owner is to learn and understand all aspects of managing a business. To ensure success, it’s in a veterinary practice’s best interest to use in-depth, accurate techniques when it comes to business planning, bookkeeping, tax planning and accounting.
If you’re getting caught up in the numbers, follow these easy accounting tips to help your practice thrive.
TIP #1: Ensure you are knowledgeable about key financial terms.
Do you understand the difference between cash flow and profit? While “profit” refers to the excess cash that remains after all of the practice’s expenses have been met, “cash flow” is the flow of money in and out of your veterinary practice.
Not having appropriate cash flow can result in a deficit in your operating expenses, and the business may not be able to recover from this state. It’s important that veterinary practice owners have a basic understanding of accounting and bookkeeping terms to avoid losses simply due to confusion about terminology. Read more…
These valuable tips as described by the author, Naren Arulrajah, can certainly be applied to all small and medium size businesses in addition to veterinarians. Education is important and can be valuable as you take your business to the next level. Expex can help. Contact us to learn more about managing your cash flow and understanding your company’s financial health.