Reach veterinary clients how they want to be reached
I was working with a veterinary clinic recently on using marketing to fill in vacancies on their appointment calendar.
We sorted the clients recently contacted by postcard and started making calls to the clients on that list who had been compliant in the past, but seemed to drop off the radar.
We made four appointments in just six calls! Success, but more important than the appointments we made we gained strategic marketing information while talking with the clients. It seemed that the clients we talked with had all set aside the postcard and forgot about it. Three of the clients told us if we sent them an email instead of a postcard, they would be more responsive in the future. Read more
Is it time to cut back on phone book advertising for your veterinary clinic?
Yes. And here’s why…
In the United States during 2010, there were an estimated 1 billion searches of the phone directory, while there were 8 billion searches for businesses through Google.
If you are looking for new, younger clients, a big, expensive phone directory ad is becoming the buggy whip of veterinary marketing. Read more
How much sales tax should you charge for tick dipping a dog?
The answer to that taxing question in a minute, but first, welcome to the crazy world of what is and is not taxable in a veterinary practice.
You’re probably selling food, treats, pet supplies and meds through your practice. Your state, county and city want their share of transaction privilege tax (sales tax) on applicable items. Here are some general guidelines for what is and isn’t taxable: Read more
Exceptions to tax rules that may benefit you (and your staff)!
There are some very stringent rules that must be followed in order to deduct meals and entertainment for business purposes which the IRS strictly enforces. In addition, for tax purposes, actual allowable, legitimate meals and entertainment expenses are only 50% deductible.
I want to tell you about some actual legitimate exceptions to these rules, some which your practice most likely incurs, but may not be taking proper advantage. The IRS tags these exceptions as “De Minimis Fringe Benefits,” and they are 100% deductible!
According to Internal Revenue Service Publication 15-B, a de minis fringe benefits is any property or service you provide to an employee which is excluded from wages, that has so little value (taking into account how frequently you provide similar benefits to your employees) that accounting for it would be unreasonable or administratively impracticable.
What does this really mean? It means that as long as you are reasonable, you can deduct such things as:
- Holiday gifts, other than cash, with a low fair market value
- Occasional parties or picnics for employees and their guests (your holiday party)
- Occasional tickets for theater or sporting events (employee outings or incentives)
- Office snacks (donuts, soda, coffee, candy)
- Meals provided to enable employees to work overtime (not based on hours worked)
- Meals furnished to your employees for your convenience (office meetings)
Be sure to account for these expenses carefully, even though the IRS may consider them de minimis, over the year, they could add up to thousands of dollars in deductions, which could be hundreds or even more in tax savings! Your pocket book will benefit and so will your employees!
The “B” Word: Budgeting for veterinary practice control and profitability
To continue my previous blog topic regarding improving profits by managing expenses, I am going to explain about the importance of a budget in this process.
I ask my veterinary clinic owners, “How can you manage your business without goals?” To me, a budget is a goal, and it’s a bonus that it is written down! Written goals are accomplished more often than those that are abstract or memorized. With all that is going on in the world, the likelihood of forgetting those abstract and memorized goals is much higher than those written and tracked. I’m sure there’s research to back that up too!
Don’t let the prospect of preparing a budget overwhelm you. If you have accurate financial statements, as mentioned previously, you are on your way! What I suggest to clients is to set up a spreadsheet that includes categories for the revenue and expenses as shown on your income statement. Once the spreadsheet is set up, you can review the past twelve months to help schedule out your budget for next twelve months. Take note of such things as the relationship of cost of services to revenue or facility expenses as they relate to seasons. Be sure to look for trends, for example in Arizona, revenues will often decrease in the summer due to the fact a lot of us either leave the state or don’t go anywhere (literally) because it’s so dang HOT!
A budget is truly a living thing; it is created then tweaked as things change! The thing to remember is that you just need to “JUST DO IT!”
Next time I am going to talk about how to utilize your budget to measure and monitor your income and expenses, the next step in our profit improvement plan!
Improving Veterinary Practice Profits
Part of a veterinary economics series by Camala C. Bailey, CPA for veterinary practice owners
As the veterinary animal hospital owner, one of the quickest and easiest ways to increase profits is to manage your expenses. Over the next few weeks I will be blogging about what information you need to gather and how to use it to implement a profit improvement process. I will include what to measure as well as how to understand and utilize the outcomes. In addition, I will share some useful suggestions for reducing your hospital’s overhead. Read more
Even with a sales-tax hike, Arizona taxes would stay among lowest
Regardless of the outcome of the sales-tax hike vote, Arizona’s low-tax reputation seems unlikely to change.
Arizona’s overall state and local tax burden ranked 41st in the nation in 2008, with 8.5 percent of per capita income going to taxes, according to the nonpartisan, Washington, D.C.-based Tax Foundation. The national average is 9.7 percent. Read more
The List For Tax Season
It seems a day doesn’t go by that there’s not some news regarding law changes/additions/deletions. Especially as they relate to taxes! Many of my clients live in fear that there will be a tax increase. I don’t see that happening, but what I do see is that the few tax advantages we have, such as deducting home mortgage interest or being allowed a capital gains tax rate, may go away. There would be such an outcry regarding raising taxes that would be a tough sell, but I wouldn’t be surprised to see deductions disappear. The billions in stimulus money is going to have to come from somewhere!
As you gather your tax information together this year, whether you prepare your own return or take it to a tax preparer, make sure to gather everything, especially those deductions we’re still allowed to take while we can!
Here is a handy list of items you need to gather:
- W-2s wage forms
- Retirement earning statements
- Social security earning statements
- Forms 1099 for interest and dividends
- Schedule K-1 (income/loss from partnerships, S Corporations, etc.)
- Form 1098 mortgage interest, plus your property tax information
- Real estate purchase or refinance paperwork
- Brokerage statements from stock, bond or other investment transactions (and don’t forget the cost basis for those sales of stock)
- All documents for deductions such as mileage, medical receipts and unreimbursed employee expenses
- One often missed deduction – car registrations if they are considered personal property tax (which in Arizona they are)
- Charitable giving receipts for both cash and non-cash donations, if your donation is over $250, you must have a receipt
- Tuition forms (1099-T)
Also, if you don’t want to bother adding up your medical expenses, consider that in some states, including Arizona, medical expenses are 100% deductible, so take the time, it’s probably worth it!
As we all go through this taxing exercise (ha ha), remember you can always get an extension, but it’s important to realize that an extension is only an extension of time to FILE your taxes, not an extension of time to PAY your taxes. If you owe, you need to include payment with your extension by April 15th. You will incur penalties and interest on any underpaid tax after that date.
Budgeting For Your Business (Don’t navigate without your compass)
Your Ship is Adrift
Running a business without a budget is like navigating a ship without a compass. Especially in this day and age it is important to set aside time (and it’s not too late!) to develop your budget. With this critical information you will have more options when making important decisions about where your company should be going and growing.
Assess Your Finances
The first step in developing an accurate and reliable budget is to take a look at your finances. Review income and expenses. Previous records, financial statements and tax returns can be used for this purpose. If you are just getting started, consider using a budget from a similar business as a model. We can provide you with some samples if you’d like!
List Expenses
Once you have compiled your documents and information, list your expenses. Consider whether you want to develop a budget for 3, 6, or 12 months. Create appropriate categories for all your expenses: rent, wages, inventory. Always remember to set aside money for emergencies and slow business periods. If your business is just getting started, you may decide to create a budget for a short time so that you can start to analyze your spending patterns, cash flow and inventory.
Examine Spending Habits
Analyzing your spending trends and considering your finances will help you project amounts for each category of your budget. Always remember to re-examine your budget periodically. You may want to create benchmarks for shorter periods. Budgets with benchmarks for month-long or 2-week periods can make the whole process easier to manage.
Review the numbers periodically and adjust them if your business conditions change, it’s okay!
Stick to Your Budget
Once you have a working budget, it’s important to stay on course and stick to it, just like the big boys! Sharing it with your team, financial advisors and accountant can help you cruise successfully into the business you’ve envisioned for yourself.
Your Company’s Vision
As we start the new year, do you know where your business is going? It may be stating the obvious but a business that knows where it wants to go is much more likely to get there than one that doesn’t!
Having a clear vision of where you want your company to go, what you want your company to do for customers and team members and how you will assess whether you have made it or not are essential for performing high and achieving your goals.
It’s not enough to manage your business with just the bottom line in mind, as the leader and owner, you have to keep your eyes on the bigger issues like the future direction of your company. Your vision should stretch yours and your team members’ expectations, aspirations and performance. It should also reflect the way you see the world and define what success will look like in your organization.
To get started consider these important questions:
- What do I want my business to look like when it’s finally done?
- What specific things do I want to achieve?
- Why did I start this business to begin with?
- What motivates me and makes me passionate about the business I am in?
- What distinguishes my business from all the rest, or how can I distinguish it?
Creating a strong and formal vision is not an easy task, but it can be fun. After all, this is about defining your dreams and making your business what you want it to be.
As you create your statement, be sure it:
- Conveys what the business will look like
- Is realistic and attainable
- Qualifies and quantifies key elements so they are measurable
- Can be used as a guide in decision making
- Is easily communicated
- Makes sense!
It’s a new year and time for a new start, so isn’t it time to set your company on a course for success?
