Knowing where your practice stands financially is fundamental to effective decision-making. Where are the numbers today and where should they be in the future? How do you drive your practice to succeed and deliver the outcomes that you are seeking?
Accessing accurate and timely information is not always easy. There is the income, expenses, profit margin, cash position, project performance etc, and once you have all this information, you then need to interpret and understand it.
So, what are the fundamental financial structures, behaviours and understandings that need to be in place for your practice to be successful?
PROFITABILITY AND CASH FLOW
Profit and cash are different. Profit is the practice’s earnings (revenue) minus the expenses (which are the costs that the business incurs to generate the revenue). Profit is
