Profit First Method for Optometry

Posted on
March 23, 2019
in
Optometry
Posted by
Ronald B. Allen

Profit First Method for Optometry

Whether you are just opening an optometry practice or have been in your own practice for years, your main focus is taking care of your patients. The skills that you learned in school and those that you have developed along the way help you do a good job and provide a valuable service to your patients and the community. And, because you have your own private optometry practice, you are also running a small business! At the college or the optometry school that you attended, you learned all about diseases of the eye, problems with refraction (and how to correct them) and all of the other important details needed to practice your profession. But, as a matter of fact,they did not include classes in small business administration, accounting, or bookkeeping. The Profit First method for optometry is something that you need to learn on your own. Fortunately for optometrists in the Kansas City area, Exigo Business Solutions is an excellent source of information and assistance.

The Profit First Method and Ensuring a Profit

With an optometry practice, like any small business, you will accept payments from your patients for lenses, frames, exams, and other services. You will pay bills, your staff, and the rent. Then you will,hopefully, have something left over for your salary and for a profit.Unfortunately, in any business, expenses can get out of hand. You may be renting in an expensive location that is not rewarding you with more patients.You may have more office staff than you need. Your bookkeeper may be too expensive and you may need to outsource your bookkeeping. The bottom line is that while you are busy taking excellent care of your patients, your expenses may be mounting behind your back!

Taking Profit First

Creating a Habit of Taking Profit First

Often times the problem of making a profit in any small business can seem insurmountable. But, the answer lies in taking the first step toward a solution and the first step in this case is to adopt the Profit First method. A business that uses Profit First starts by creating separate bank accounts for profit, owner’s pay, and other categories such as routine expenses. Every tenth and twenty-fifth of the month, money from patients is deposited into the various accounts, starting with the profit account!

Putting Your Profit in the Bank

This is the first big step to applying the Profit First method for optometry. And, any smart Doctor of Optometry will ask, how is this possible when I have so many expenses? The answer is that most small businesses, and this certainly includes optometry practices, have too many expenses. But, when you are spending all of your time and energy taking care of your patients and their visual problems, it can be easy to let expenses go up.So, what is the next step?

Getting a Clear View of Your Finances

We mentioned the issue of expensive bookkeeping. The problem with bookkeeping very often is not that it costs money to do it but that you don’t get the information that you need! At Exigo Business Solutions we offer QuickBooks ProAdvisor Services. QuickBooks is far and away the best bookkeeping and accounting software for small and medium-sized businesses. What an optometrist needs from the bookkeeper is a timely listing of income and expenses, broken down so that it is possible to see where money may be being wasted and where changes could be made! With QuickBooks we generate custom reports for our clients. These reports show the good doctor just where the money is being spent and provide insights as to how things could be different.

Profit First Fixes Budgeting and Cash Flow Management

Budgeting and Forecasting are key to Cash Flow Management

A fact of life and business is that expenses tend to keep rising if you do not control them. It is easy to let a project take more and more time until a deadline looms. It is way too easy to use up the entire budget on a job when half of the money would have accomplished the job. With QuickBooks reports and Exigo Business Solutions on your side in the Kansas City area, you will be able to spot the problems and initiate solutions to control your cash flow, budget more effectively, and free up even more money to go into profit and owner’s pay on the tenth and twenty-fifth of each month!

With the Profit First Method for Optometry You Do Need to Wait for a Profit!

When should your optometry practice start realizing a profit? That should happen right away when you use the Profit First method for optometry practices. We know that the main focus of your business, and your life, is taking good care of your patients. You work hard every day, go to continuing education classes, read professional journals, and then have to manage your small business as well. Luckily for optometrists in the Kansas City area, Exigo Business Solutions works with optometrists to maximize their profits and provide not only excellent bookkeeping and accounting services but a range of business services and counsel to make your life easier as your business becomes more profitable.

Contact us for more information.

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