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In this episode of the Inventory Nation Podcast, I am delighted to be joined by Keith VanHoy, CPA. Keith talks about why having a strong financial and accounting system in place is important to the long-term strategy of a veterinarian clinic. He gives examples of some of the benefits of having a CPA and discusses challenges that clinics face when they do not have a solid partner to help with financial analysis.
If you are fearful of seeking professional help or think that hiring a CPA is not for you then this episode will change your mind.
- Keith recognized that veterinarians are a great group of people that are business owners that are forced into a financial role that they probably are not prepared for.
- There is some intimidation factor to working with a CPA to start structuring a new financial system. Communication is the key to progress.
- Many veterinarians are doing the books themselves. They are doing it to get a tax return completed. It is more about compliance and doing the books because they must versus getting value from the process.
- A tax return itself is historical data. It is not doing anything for you in the future. You are filling out forms to talk about what happened in the past. So you’re really not getting value from it there.
- It’s a matter of taking that old model and being able to make it into a financial system to where the client is actually able to get monthly numbers. Then showing them a modern way to start looking at numbers and analyze them to run the business.
- Practices will determine that there is a problem with just a feeling that something is wrong. What we want to do is take that feeling and confirm it by using real numbers and real data.
- Proper accounting systems can impact more than just the business. If you are spending extra time or weekends, then having a better accounting strategy can help.
- A very common practice is that a clinic is not using integrations that their practice management system already has for their financials. There is somebody in the practice that’s put in every single transaction.
- You can have information directly import into QuickBooks, by revenue category, which saves time and it puts your information in by revenue source to help with analysis.
- Having an efficient financial system in place frees up time to work on other areas of the business.
- Do not do payroll within the practice. Payroll companies are efficient and very cost-effective.
- Between four and 6% of revenue should be spent on administrative salaries to make sure that you have somebody dedicated to managing everything in the day to day.
- Feeling organized both financially and in their biggest cost areas is a real stress reliever for veterinarians.
MEET KEITH VANHOY, CPA
Keith VanHoy is a CPA at Stopp & VanHoy CPA firm. He specializes in working with veterinary professionals by giving them advice on the areas of taxation and financials, all with the goal of helping them to be more profitable.