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Sally McKenzie's

Weekly Management e-Motivator


 

Issue #40

Click here to print this
e-motivator Article.

November 29, 2002

Sally McKenzie,CMC
President
McKenzie Management
SallyMcK@mckenziemgmt.com

1-877-777-6151 Ext. 11

Watch What’s Tossed in the Budget Dumpster

“Oh just stick it under miscellaneous.” How often do you find yourself saying those words when searching for somewhere - anywhere in the budget to assign this or that expense? After all, it can pretty much be tossed and forgotten there, sort of like yesterday’s newspaper.

It’s the landfill of the practice budget. Don’t know where to allocate this charge – stick it under “miscellaneous.” That expenditure really doesn’t fit anywhere specifically, just dump it into miscellaneous. Before you know it, all kinds of questionable expenses have found their way into what has become the budget dumpster, each one cleverly disguised as “miscellaneous.”

It is not unusual to see miscellaneous expenses at 15% of monthly collections, which is well above the 10% benchmark. “Miscellaneous” is typically where you find professional association dues, subscriptions, legal fees, accounting fees, business taxes, equipment purchases as well as maintenance and repair costs, business and malpractice insurance, bank charges, telephone/Internet expenses, and advertising and marketing costs – all worthy and necessary expenditures.

However, because miscellaneous items are often listed separately on a profit and loss statement, they are easy to disregard. Consequently, the impact of each expense on your overall budget is often overlooked.



Sally’s Recommended Actions
  • Monitor miscellaneous expenses
  • Avoid the tendency to just pay the bills as they come in for expenses such as malpractice insurance and accounting services without questioning them
  • Comparison shop for lower insurance premiums
  • Know exactly what you are getting from your accountant and your attorney in exchange for that monthly stipend they are getting from you
  • Ask for itemized invoices
  • Make the miscellaneous items listed above sub categories under "Miscellaneous" in order to view a total amount rather than having them scattered through out the report. As a result, you don't pay any attention to 1.3% or .75% for example.


Pay attention to those small, seemingly insignificant expenses that ultimately chew up a sizeable chunk of your practice budget. It will go a long way in helping you control the overall finances


Technology Tool Box

Mark Dilatush
VP of Professional Relations

for McKenzie Management

Mark@mckenziemgmt.com

1-877-777-6151 Ext. 28

A series of short weekly chores designed to keep the return on investment in technology at its highest level.

 
Top Ten Technology Do's and Don't's #10

This is the last in a series of Top Ten Technology Do's and Don'ts. If you missed any of the previous issues CLICK HERE.
Purpose:
Every week we will publish one of the top ten. Unlike the “Tonight Show”, these are not in any particular order. These are compiled from watching 20 years of mistakes and helping to fix those mistakes. We would rather our clients just avoid the mistakes!
Situation:
We currently store sensitive data on our computer system and are in the process of going paperless? How do we protect ourselves from IRS audits, insurance company audits, or malpractice claims?
What NOT to do:
Do not assume the IRS, an insurance company, or lawyer will believe what is inside your computer.

Do not ignore the problem. The solution is simple.

What TO do:
Install a CD burner on one of the PC’s in your office.

Buy a pack of 24 rewritable CD’s and 24 jewel cases. This is enough for the next two years.

Once a month, burn a CD of your practice management system directories onto the CD.

Send the CD to your home using certified mail with a return receipt requested.

When the CD arrives, do not open it! Place it on a shelf somewhere safe in your home. Tape the receipt to the package.

If any entity ever questions the validity of the data in your computer system, you have month by month non-alterable proof of the validity of the data in your computer system.

Total cost of the solution should be under $150.

 

You have 17 work days to reach your year end GOALS . . .

•Will your production exceed   last year minus fee   increases?
•Will your patient retention   increase to add days of   hygiene?
•Will you take home more   money?

The TOP 4 concerns of 2002
•Staffing •Scheduling
•Hygiene •Cash Flow

Will you make it?
Take this test to find out!

 


What if ...
Your business staff had the training, efficiency, knowledge, expertise and organization of the
Nation's TOP Dental Management consultants?

"I have some GREAT employees and know they could be even better with the proper training, but that's not my area of expertise. HELP!"

How do I know if my staff needs Advanced Business Training?
Find out by clicking here!

The Center for Dental Career Development
Advanced Business Education for Dental Professionals

 


 

Missed any past issues of Sally's
Weekly or Monthly Newsletters or Magazine Articles?
(click an item to view archive)

 


This issue is sponsored in part by:

DentalTown

 

 

Secure Data Express™ (SDX™)

 

 

McKenzie Management

 

 

CareCredit

 

 

The Center for Dental Career Development

 

 

Lares Research




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Copyrights 2002 McKenzie Management - All Rights Reserved.