Q How do we help our practice owner see our revenue is increasing even though practice traffic seems slower?
Lorraine Monheiser List
"Most likely, your practice is increasing its average transaction charge by capturing charges and payment for services rendered
and by keeping up with fee increases," says Lorraine Monheiser List, CPA, a certified valuation analyst and a consultant with
Summit Veterinary Advisors in Littleton, Colo. But your owner seems to view success parallel to practice traffic rather than
profit, she says. That method may be flawed since you can't continuously monitor traffic and the appointment calendar doesn't
"Your practice management software should be able to produce reports that reveal the number of transactions your practice
completes each day, week, or month, which paints a more accurate picture," List says. "The software also should compute an
average transaction charge for each doctor and for the practice overall." You can also compare actual practice revenue for
this year to date with the same period last year, she says. These reports will help your owner focus on accurate and meaningful
"If the number of transactions drops, suggest ways to increase practice traffic and fill empty time slots," she says. "For
example, consider follow-up calls to remind clients to schedule recommended procedures and exams."