Staying within your physiotherapy clinic's budget can be a challenge. With increased overhead, expanded service offerings, more stringent reimbursement guidelines, and other factors, your expenses can often be enormous and will continue to grow if not monitored.
Cutting costs should never come at the expense of quality patient care. Instead, it would be best to reduce your expenses by increasing efficiency and productivity within your team and cutting back on unnecessary costs.
1. Track your expenses closely
One of the first steps to reducing business expenses is to have complete visibility on all of the costs associated with your business.
Suppose you are not managing your bookkeeping properly and tracking every expense your clinic is incurring. In that case, you won't see where you can trim back or identify tax deductions that you aren't correctly maximizing. You need to have access to reliable historical data to create a budget and forecast as to where you should be spending your money.
2. Gain efficiency through technology
To improve your clinic's bottom line, you want to make sure your physiotherapists and administrative staff are working efficiently and not spending their time on things like manual data entry or unnecessary paperwork.
Instead of using desktop software, move to a comparatively cheaper cloud-based software to purchase and maintain. With advancements in technology, there are numerous different software tools that can streamline your workflow.
For example, the Jane App is excellent for automating your clinic's scheduling, billing, and insurance claims. It makes it easy for therapists to capture patient data and set up billing for both patients and insurance providers using the app.
QuickBooks Online is one of the most popular cloud-based accounting software for small businesses. It has most of the basic accounting features required by your clinic and allows users to collaborate and access financials while on the go.
You can also take advantage of tools like Dext Prepare to extract essential information from invoices and upload transactions to accounting software, saving you a significant amount of time on manual data entry, all while creating an easy-to-follow audit trail.
A program like Plooto can simplify your vendor payment and payables process. You won't need to worry about writing and mailing cheques any longer. Using Plooto, you can authorize and schedule electronic payments to all of your suppliers. This ensures that they are paid on time and even allows you to take advantage of early payment discounts.
3. Outsource non-core business tasks
One of your highest costs will come from your payroll as a physiotherapy clinic. You will have therapists and administration staff who all need to be paid.
There are also other tasks that you will need to manage to keep your clinic afloat. Things like bookkeeping, marketing, and HR must be handled; however, they are not necessarily full-time tasks. Hiring an in-house bookkeeper or marketer might not make financial sense for your clinic.
Outsourcing is an excellent way to reduce business expenses while still having a dedicated resource to manage these tasks. Plus, you won't need to pay CPP, EI, or deal with vacation pay and benefits. You also don't need to worry about recruitment or training costs.
4. Make use of early payment discounts
The amount of supplies that your physiotherapy clinic requires is almost endless. You will need to order supplies like kinesiology tape, heat packs, foam rollers, resistance bands, and equipment to enhance patient recovery. You might have to order supplies from a variety of suppliers, and keeping a good relationship with them is crucial for your business.
Many of these suppliers might offer early payment discounts that could reduce your invoices by one to two percent. If you have sufficient cash to handle these early payments, these discounts can amount to significant savings over time, especially on bulk purchases.
However, you will need to stay updated on your invoices and accounts payable to maximize these discounts. You must also save and reduce your expenses as much as possible.
5. Analyze your fixed costs
Fixed costs are often neglected because they are recurring and stem from long-standing relationships with your suppliers and vendors. However, these costs shouldn't be ignored.
You should re-evaluate these fixed costs at least once a year to determine if you are getting the best possible value from your provider or if there are ways that these costs could be further reduced.
By keeping a close eye on all of your clinic's expenses and evaluating them frequently, you can find many different ways to save without having to cut corners when it comes to patient care. Even a minimal amount of savings each month can mean a significant reduction in your expenses over time.
If you would like to enlist the assistance of a professional bookkeeper to help better manage your clinic's finances, Enkel is here to help. We have a qualified team of skilled and experienced bookkeepers that can help your clinic gain better financial visibility and assist you in meeting all of your future goals.