“What is the Best Way to do Medical Spa Financials?”
He says, “One thing I dislike is doing my financials, doing my budget, my monthly statements, etc. Do you have some suggestions of what’s the best way to do this so I can take it off my plate?”
I’m so glad Anthony that you have the awareness that this is something that you should not be doing. We all have our own specialties. I do seven-figure business advising to people like you. You are a physician doing the best you can do for your patients or your guests. The people who do their best doing nursing or different things, we all have our specialties. We should stick to our specialties.
The last thing I would want to do is take care of my own financials. I definitely don’t do that. I’m so glad that you have the awareness that this is something that you should take off your plate because you’re going to feel like a big weight was lifted off your shoulders.
Now, of course, you need to monitor your financials. You need to know what’s going on. But the last thing you want to do is you handle your QuickBooks, write your bills, and all those things.
So how I work this out, and how I advise my clients on taking care of their financials, is you should have really a two-part financial situation going on in your place.
One, you should have one person who’s entering all the information into QuickBooks. Then, of course, you need to have your software to be able to communicate with QuickBooks. That’s the first thing one of your team members can really do that for you
The second thing you want to do is you approve all the bills that need to get paid. You should never let somebody just pay the bills to pay them. They should give you a file monthly with all the bills that need to get paid. You approve them first, and then they go to get paid. So you should have a purchase order process in place. No one should be able to order just whatever they want to order, and then you approve it before it goes. That’s the first step of your financial management.
Then all that information should go to a bookkeeper. Your bookkeeper really should be doing all your financials for you. At the end of each month, you should get a file like this that has your P&L statements, your cash statements, reconciliation statements, anything that you need to monitor your business, your cash flow statements, and your budget versus actual. It should have it for the month. It should have it for the month this year versus last year. It should have it year-to-date this year versus last year. That way you have clarity on what needs to happen on a monthly basis.
For example, I have my accountant or bookkeeper who will give me my financials at the end of each month. By the fifth of each month, this file is on my desk, and it tells me exactly what the business financial health is. You have to have that.
The last thing you need to do is you be doing that because I definitely don’t do that. You have people to do what they do best. So whether you have your own bookkeeper or you have an accountant who’s doing that for you, that’s all fine and dandy if you have somebody.
If you don’t have someone, we launched a brand-new service to help you. This was something that I was finding over and over with clients – that they did not take care of their financials properly. I would ask for a P&L statement; they never have it. I would ask for any kind of other statements like actual versus budget; they don’t have it. I can’t help the business unless I see those financial statistics.
If you want to, if you don’t have somebody who’s helping you right now or if you’re looking for a change, you can go to InSPArationManagement.com. Under services, you’ll see the tab for Medical Spa Financial Report.
This is what you would get on a monthly basis if you join this program:
Financial management reporting program. You’ll be able to get your monthly financials every single month. We have a financial analyst on our team who will help set you up properly. There’s a setup.
Then we do monthly reporting for you. We sit down with you and we have a coaching session to see exactly where you are, what you need to adjust, and what you need to change.
It’s going to give you great clarity on what’s going on in your business. When you have that kind of clarity, it makes all the difference in the world. You’ll be able to know what you need to adjust.
Because if you’re not monitoring your financials, that means you’re not really keeping your eye on the ball. When you don’t keep your eye on the ball, you may fumble it. That’s the last thing you want to do.
So check it out. Again, it’s called Financial Management and Reporting Program. It is a monthly membership. It’s up to you how long you want to stay with it or not. You’re going to love it once you try it.
If you have any more questions on that, feel free to set up a strategic planning session with us. We can take a look at what you have going on now and then make the proper recommendations to help you. I look forward to helping you. Hopefully, I answered the question for you, Anthony
If you do have a question, make sure you write me to Dori@InSPArationManagement.com, and I’ll answer it for you as well. Until next time, stay inspired!