To fully understand your numbers means you can use them to make wise decisions and grow a healthier business.
Running a chiropractic business is not just about aligning the spines of your patients, it’s also about aligning the financials of your practice. Understanding the financial aspects of your business is essential for achieving freedom and success in your practice.
As a chiropractor, your primary focus is on the health and well-being of your patients. However, in order to continue providing high-quality care, it’s crucial to have a solid understanding of the financials that keep your practice running. This is where bookkeeping comes in.
Bookkeeping is the process of recording and organizing financial transactions for your business. This includes tracking income and expenses, managing accounts payable and receivable, and preparing financial statements. By keeping accurate and up-to-date records, you can gain insight into the financial health of your practice and make informed decisions that will help your business grow.
A lot of DCs I talk to rely on their CPAs for insight into their numbers. Some CPAs are great about this, but most only maintain the books for tax purposes. As a business owner, you need insight into your data every month, or at the very least quarterly, so that you can make proactive decisions. If you wait until tax time to know your numbers, you’re only able to make reactive decisions for your business.
One of the most important financial aspects of running a chiropractic business is managing cash flow. This is the process of managing the flow of money in and out of your business. By understanding your cash flow, you can ensure that your practice has enough money to meet its financial obligations. This is particularly important for chiropractors, as many insurance companies take several weeks to pay claims.
Bookkeeping can also help you save money on taxes by ensuring that you are taking advantage of all available deductions and credits. By keeping track of all your business expenses, you can make sure that you are not overpaying on taxes.
Another key aspect of running a chiropractic business is forecasting. By creating a money forecast, you can plan for future expenses and make sure that your business has enough money to meet its financial obligations. A money forecast will also help you to identify any areas where you may be overspending and make adjustments accordingly.
In conclusion, understanding the financial aspects of running a chiropractic business is essential for achieving freedom and success in your practice. Bookkeeping can provide you with the tools you need to gain insight into the financial health of your business, manage cash flow, save money on taxes, and plan for the future. By aligning your financials, you can ensure that your practice has the resources it needs to continue providing excellent care to your patients.
If you have any questions about your numbers, you can schedule a freedom call here or simply send an email to firstname.lastname@example.org. I’ll be happy to share all the insights I can!