Spring has officially sprung, which means that it’s time to do some deep cleaning. Just as you would tackle every corner of your home when the new season hits, your finances deserve the same careful attention.
With the first quarter swept under the rug and tax season behind us, here are some ways to help set yourself up for a successful spring season.
- Evaluate receivables. We’re past 90 days into the new year; evaluate your books to see what receivables are past this point of delivery. Adding it all up can give you a clear picture of the income you’re missing. Create and execute a collections plan—whether you do it in-house or contract with an agency—to collect all monies owed.
- Review your budget. Dust off your budget and carefully review how you’re tracking against your plan. Are you hitting your income projections and spending as planned? If not, make the necessary adjustments. If you’re faring better than you budgeted, then consider what you can do to maximize your savings.
- Identify ways to fill the gaps. Ebbs and flows are the nature of any healthcare business. When you’re relying on insurance reimbursements or patients to make monthly payments, cash flow can be unpredictable. Identify ways you can fill the gap, like having access to working capital, when cash is tight so you’re not in a vulnerable position.
- Check your credit profile. Your personal credit profile can impact you professionally. A good credit score can mean access to better limits, terms, and rates on credit cards and loans. If your profile is less than stellar, see how you can make it shine—whether by closing inactive accounts, paying off debt, or something else.
- Create a better filing system. Are all of your important business papers easily accessible and organized? If not, devise a better system for the files you’ll need come next tax season. And consider moving to a digital storage system to free up clutter.
- Shred the non-essentials. Scrub your folders and only keep the papers you need. If you’re not sure what to keep, then opt to scan those questionable documents and save them electronically before getting rid of them.
- Address your debt. Debt can create a heavy burden for small business owners. Pay down what you can or consolidate multiple debts to help make payments more manageable.
- Identify investment opportunities. Technology and product upgrades can help you become more efficient and save you money in the long run.
- Consult an expert. It’s always a good idea to tap an expert when it comes to your finances. As a healthcare professional, you’re busy; lean on a CPA or tax consultant to help you with your financial spring cleaning.
There’s nothing quite as refreshing as spring cleaning after a long winter season, whether it’s your home or your business finances. Practicing healthcare is stressful enough; your business finances (and stress!) can benefit greatly with a little spring sprucing.