5 ways veterinary hospital owners can maximize their cash flowAs a hospital owner, whether you’re feeling the squeeze of the economy or not, you can protect and grow your cash flow with these tips.
Between conversations regarding a potential recession, student loan repayments, and rising interest rates, many veterinary hospital owners are focused on closely monitoring expenses, increasing revenue, and maintaining a healthy cash flow. When there’s economic uncertainty, it’s always best to make the most of the cash you have on hand.
Access to cash can allow you to make necessary updates to your hospital, provide customers with excellent care, and provide a cushion when demand is less predictable.
Here are five tips for maximizing cash flow for your hospital:
1. Evaluate your operating expenses.
Review all purchases and expense reports associated with your hospital each month. Taking an hour or so at the end of each month to do this will provide you with insight into where there are opportunities for your hospital to become leaner. Cutting out unnecessary expenses will help increase your cash flow. Consulting your veterinary-specific CPA is a great place to start!
2. Consistently assess your fees.
Overhead costs continue to increase. As costs change, it’s important to critically review your fees and adjust accordingly. Determining what your fees should be can be a difficult task. Some consultants specialize in fee schedule reviews. They can help you evaluate your fees and identify potential opportunities for your hospital.
3. Use a credit card to maximize cash-back rewards.
As your hospital grows, so do your expenses. Using a credit card can allow you to make money back on all purchases for your veterinary hospital and serve as a great tool to “get more as you spend more.” You’ll want to look for a credit card with a reward system tailored to the purchases you make most often for your hospital. This will allow you to maximize cash-back rewards, which you can reinvest back into your business (or your personal life – take that dream vacation you’ve been putting off!).
4. Remember that higher interest rates can provide opportunities.
Higher interest rates affect cash flow both ways. Now can be a good time to evaluate institutions that can provide higher rates of return on your savings balances to help offset higher rates on your debt.
5. Secure financing for pivotal moments.
There may be times when you need cash to help expand your business, purchase new equipment, or invest in technology, which is why financing should still be an option. If you have the opportunity to grow or expand your business, securing a loan can help you meet those goals.
Bonus tip: Consult a trusted professional.
No matter where you are on your ownership journey – from opening the doors to your brand new hospital to expanding or remodeling your established hospital – it’s important to surround yourself with experienced professionals you can trust. By building a support network made up of an industry-specific CPA, attorney, insurance agent, lender, etc., you can focus on doing what you do best: caring for your patients and improving the industry standard of care.
Editor’s note: While we hope this information is helpful, you shouldn’t consider it financial advice – consult an appropriate professional related to your individual circumstances.
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