Finding overhead savings in your physician practice

Written by Reed Tinsley, CPA | October 26, 2011

 

Here are a few ideas:
Always prepare or have prepared financial statements on a comparative basis. This allows you to spot overhead items that appear to be out of line. Go down every overhead category line by line to spot overhead increases, then investigate.

 

If you review practice overhead, be sure to have access to a year-to-date, detailed general ledger. This type of general ledger lists all financial activity, including journal entries, for each general ledger account for each month of the year to-date. This is an excellent tool to use when analyzing the appropriateness of specific overhead categories. This type of report allows you to see if, in fact, entries to the account are realistic, necessary, or even misposted.

 

About the Author

Reed Tinsley CPA

This article is written by Reed Tinsley, a Houston, TX-based CPA with over 30 years of experience advising physicians and medical practices across Texas and the United States. Reed holds certifications as a Certified Valuation Analyst (CVA), Certified Healthcare Business Consultant (CHBC), and Certified Financial Planner (CFP), specializing exclusively in the healthcare sector. He is a published author, nationally recognized speaker, and trusted advisor to physicians on accounting & tax, practice management, and financial planning. Schedule a Free Consultation.

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