Therapy Profit and Loss Health Check – Get Yourself a “Sanity Check” on Quick Books

I have looked at enough therapy practice P/L statements over the last 25 years to know that this is a tool that is often not reliable and inaccurate; oftentimes not representing the true profitability of a company or pointing out red flag indicators to a practice owner. Key points like whether you demonstrate shrinking profit margins, and if your labor costs are rising faster than revenue are not obvious. Additionally, in many practices where the owner may have regular personal, discretionary spending on the books, there is no adjustment of that on the P/L, distorting the true figure. Add to that the fact that some practice owners do not take into account whether they overpay, or underpay themselves on the books, and you are left with a P/L statement that does not provide you with accurate picture of your practice, despite the fact that you may rely on it to make important business decisions and at some point down the road, share with potential investors, partners or buyers.

This spreadsheet, designed by a CPA, CA (Canada) with extensive experience in the industry offers you the ability to have a more accurate picture of profitability and how a standard therapy practice income statement should be presented.  Consider it a “sanity check” on Quickbooks where you can have the best of intentions but lack the uniformity and guidance on what should be included and how you should normalize and forecast your financial picture.
This tool is useful if you have never created a P/L statement, or even if you have.  Many times, even your accountant or bookkeeper may be unfamiliar with all of the nuances inherent in our field.  Sample data included so you can see how it works.

$95.00

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