Tracking Revenue in Private Practice

As practice owners, we carry a huge amount of financial responsibility on our shoulders.

Not only do we need to make money in order to pay our bills and our team, we also need to provide them with an attractive career pathway whilst offering them financial security.

In addition to looking after our team, we are also in charge of our own financial freedom and security.

And as you know…

None of this is achievable without knowing your numbers, right?

Here’s the thing…

Good - even great private practice owners - can (and will) go broke when they don’t know their numbers… and I don’t say this lightly. If seen this happen and it’s not pretty.

So why do we tend to do this, though?

If you’re anything like me, you didn’t go into psychology, or speech pathology , or occupational therapy, or any other discipline to work with numbers.

You wanted to help people… not to be a bean counter!

So, looking at numbers doesn’t come naturally to many of us.

Regardless of all of that, I’ve learned over the years that we HAVE TO focus on the numbers.

Imagine one day finding out that you don’t have enough money in the bank to pay the bills.

What’s going to happen?

You start to panic…

You can’t sleep…

You wonder how you got to this point….

Knowing your numbers can prevent all these from happening.

One of the first numbers you want to start tracking actively is your monthly Revenue (also known as Sales or Turnover). It sets an important benchmark that you can monitor as your practice grows. It also shows you how much money your practice will have available to cover all wages, operating expenses, liability and profit.

In addition, by tracking Revenue over time, you will start to see important cycles in your practice that you will need to manage from a cash flow perspective, which will allow you to have ‘slower’ months without the stress and anxiety about paying all your bills.

The bottom line is this:

If you want to build a long-term sustainable and financially successful allied or mental health private practice, then tracking your number, including Revenue, is essential.

Here’s to helping you build a private practice you can’t stop smiling about!

Warm regards,

Gerda

PS: I have opened up 5 places within the Private Practice Success Academy for the month of June, so if you know that you need help with tracking your numbers, setting financial KPIs, money mindset, billing and cash flow, then be sure to send in your EOI via this link: https://gerdamuller.typeform.com/to/qy7PgOfa

PSS: The monthly investment into the PPS Academy is significantly increasing on 1 July 2021, so now really is the time to join.

ABOUT THE AUTHOR

After starting her PhD on the topic of "Psychologists as Practice Owners: Current Challenges, Coping & Success Predictors", Gerda was appalled at the lack of support for Allied Health Professionals going into Private Practice and decided to do something about it. This was the start of Private Practice Success Australia.

 E: [email protected] | W: gerdamuller.com.au

WINNER: National Allied Health Private Practice Excellence Award

WINNER: Queensland MENTAL HEALTH Achievement Award for Best Small Business 

WINNER: Logan Business Distinction Award