March 01, 2021
AVMA creates practice management tools for members
The AVMA has released two resources to help simplify financial and back-office operations for veterinarians: a business plan template and a profit and loss calculator.
Matthew J. Salois, the AVMA chief economist, said the AVMA knows providing economic insight and resources to members is helpful.
“We know that practical tools and resources to help practice owners and veterinarians navigate the rough waters of our economy and business environment are needed, now more than ever,” he said. “We are pleased to bring these hands-on and interactive resources to support our veterinary professionals and help drive a more prosperous and economically sustainable practice that delivers the best care to patients.”
The downloadable and customizable business plan template allows veterinarians to analyze a practice’s current plan or to build a new one from scratch. It guides users on how to conduct a market and industry as well as financial analysis, create marketing and operational plans, and do a risk assessment. The resource will also help owners identify opportunities, set measurable goals, and develop a focused strategy for success.
The other tool, a profit and loss calculator, lets practice owners track revenue, expenses, and overall profitability. The calculator helps to create a profit and loss statement, also known as an income statement, that owners can use to compare their business to others of similar size.
Additionally, the calculator can be used to identify areas to change spending habits, develop new revenue opportunities, and optimize staffing.
The profit and loss calculator uses data from the American Animal Hospital Association, mostly from companion animal practices, so comparisons with other practice types may be incorrect.
In addition, the AVMA has several other practice management tools, including pricing strategies, a market share estimator, an industry-standard chart of accounts, and strategies for maintaining cash flow, also on the site. The tools are available only to AVMA members.