Analyzing Your Inventory Management and Budgets to Maximize Profitability

The biggest financial impact of practice management lies in the decisions made from data collection when tracking your inventory spending and usage. “Big picture inventory management” is what Kira calls your role as the doctor or manager and is crucial as it directly effects all aspects of your business. Do you know how your inventory spending compares to others or how it directly effects what you should charge your customers? In this lecture you will learn what “big picture inventory management” entails and how to properly set up budgets to provide staff the information they need to properly manage inventory on a day-to-day basis despite changes in receivables. You will learn how to compare your current spending to industry averages and make adjustments to bring your overhead down. With this knowledge in hand we will explore how an adjustment in your receivables needs to reflect the ever-changing inventory expenses and other costs so you are not left in the dark.

Learning Objectives:

• Create and anaylize inventory budgets.
• Identify your current spending percentages using total net receivables to make comparisons to industry standards.
• Determine what your role as a manager is when it comes to inventory and how to be the most effective with limited time.