vet office mgmt Ch. 20

what is a variable expense

A variable expense is an expense that changes with the volume of clients and business. Examples include medications, supplies, and pet foods

if a practice reports services when they are invoiced, they are said to report by which standard

Accural basis

define benchmarking and describe the difference between internal and external benchmarks

Benchmarking is the process of comparing a practice to others on a local, state, region, or national level. Internal benchmarks look a t the practice's historical figures; external benchmarks are the average numbers or percentages across the industry.

what is the purpose of a client survey

Client surveys should be performed to ensure client satisfaction and determine areas of the practice that need improvement.

staff payroll is considered a ______ expense for benchmarking purposes

variable

in order to maximize revenue, a practice manager may:

analyze fee schedules

define some areas that could cause a cash flow crunch

cash flow crunch could be caused by improper inventory management, fraud or embezzlement, excessive payroll, or higher than profit distributions paid to the owner(s).

current accounts receivable percentages should not exceed

2.5%

appx. what percentage of gross revenue is lost because of missed charges

20%

what is the difference between a CPA and a bookkeeper

A CPA has a degree in accounting and has sat for numerous exams. CPAs must also attend continuing education each year to maintain their professional status. A bookkeeper generally learns by trade

why should a budget be created

A budget should be created to prevent overspending and shortfalls when paying bills. A practice must budget for taxes and expenses and be able to reinvest money back into the practice in order to purchase equipment.

what is a fixed cost

A fixed cost is an expense that does not change regardless of the volume of business Examples include rent, electricity, and property taxes.

how can a manager increase the value of a hospital

A manager can increase the value of the hospital by ensuring medical records are complete, recommendations are made to clients, and that clients accept the recommendations being made. Increased client compliance and retention drive value, along with low turnover of team members. Building maintenance, modern equipment, and good financial records will also help.

what is a key performance indicator and why are they important to track

KPIs are key performance indicators and are used to evaluate the practices performance in several areas that are of interest

define the red flags rule and why it should be implemented by the vet practice

The Red Flags Rule has been established by the Federal Trade Commission to try and decrease fraud, embezzlement, and identify theft in businesses. All three of these factors occur in veterinary medicine, and it is up to every practice to protect the clients and team members.