A budget can help you reach your goals
A tangible spending plan is your vision for the future and is important for the financial health and success of your practice.
What if I told you that one of the best ways to achieve your goals while maintaining or increasing profit levels is through developing and using an annual budget? To the uninitiated, the mere mention of budgets causes groans and eye rolling. However, power users know that budgets are critical tools for managing their businesses. […]
KPIs leave out the whys
Key performance indicators help monitor the success of your actions, but they don’t explain the reasons for change.
Key performance indicators, or KPIs, are individual business metrics that help veterinarians, managers and consultants evaluate the overall health of the practice, as well as the effectiveness of new programs and any progress toward goals. With the multitude of reports available from practice management information software, plus more that can be customized in hundreds of […]
Using EBITDA can be tricky
The popular financial metric is not the most accurate method for calculating profitability or a veterinary hospital’s value.
You may hear about veterinary practice sales where the purchase price was some multiple of EBITDA. EBITDA (pronounced: ee’ bit dah) is an acronym for earnings before interest, taxes, depreciation and amortization. In other words, EBITDA represents net income with certain accounting expenses, namely depreciation and amortization, income taxes and interest expense, added back in. […]