Cash Flow Killers For Medical Professionals
Is your medical practice cash flow not as healthy as it should be? It surprising but this can happen even if you’ve got more clients than ever before.
As the saying goes – cash is king in business.
Take back control of your medical practice cash flow by recognizing and changing these cash flow killers.
Not Using Appropriate Accounting and Practice Management Software.
Not using practice management and accounting software is probably holding your practice back from being as efficient as it could be.
You might be missing subtle areas of your business that are bleeding money, or worse, alarming trends in your practice that have been building over months and years.
You may have been running your own medical practice for many years, so it might be tempting to keep on doing things the way you’ve always done them. However, you could be missing important accounting and financial details that are key to your cashflow improvement.
Poor tax strategy and business structure can result in you paying too much tax. This will have a huge impact on your cash flow. But the opposite problem, not paying enough or not understanding your tax obligations could get you in trouble with the ATO and potentially face fines.
As a high-earning medical professional, please remember that the ATO will be expecting to see a return with high income from you. You need to have a plan and ensure you meet your obligations on time. This is where working with a proactive medical accountant is crucial.
Debt is one of those things that hangs over your head. If you don’t start dealing with it now it will spiral out of control.
Your medical practice’s debt can easily blow out when interest and fees are added. Making the minimum monthly payment may not be enough. Small additional payments on your loans can have a huge impact on the time frame of the debt and the total interest paid.
Some medical practice owners also make the mistake of taking on too much debt.
You should also review any loans that you have in place to see if better deals are available. Most medical professionals received concessions from lenders for their loans.
No Risk Management Plan.
Too many medical professionals, and other business owners, say they already know what kind of problems to expect and how to avoid them. Others feel that they won’t be able to do anything should something happen, so why bother. The reality is these are the people who lose the most money when something goes wrong.
Whilst you can’t anticipate and avoid every single bad event that could happen to your medical practice. But having a risk management plan will lower your chances of your business not recovering if something were to go wrong.
Talk with a medical accountant to ensure that you have the right insurance coverage, data security and savings to protect your business in the event of an unexpected problem.
Not Getting Expert Accounting and Financial Advice.
You have sent many, many years studying to excel in your chosen medical profession, but they don’t teach you the fine details about running a business. Being a highly skilled medical professional is awesome, but it won’t guarantee you success maintain a healthy cash flow.
Seek out professional advice to help you structure your finances. You’ll be glad you did!
Get advice today