Physical therapists wanting to transition to private practice should brace themselves for the demands of running your own operations, particularly when it comes to managing your finances. Unfortunately, your PT skills are not enough to ensure a smooth-running business. Knowing about the business side of practice management is also crucial if you are to establish a good office that satisfies the needs of your patients and at the same time keeps you a profitable and sustainable business. You might not think much about practice management reporting, but this is something that you should be knowledgeable about as it can greatly impact the proper management of your cash flow as well as your operational costs. Your monthly financial reporting should be so much more than just another thing on your to-do list. It should be treated as an important part of your business strategy.

• End-of-month reporting gives you a clear snapshot as to where your practice stands financially and how well your business is doing on a monthly basis. Properly managing your end-of-month reporting will help you monitor depreciating fixed assets and pinpoint inventory discrepancies. Maintaining good reporting practices will also allow you a better handle on where you stand when it comes to accounts receivable and accounts payable.
• Practice management reporting is also vital because it helps you spot issues as they arise. With a good practice management reporting software, you don’t need to wait until the end of the year or a significant period to recognize issues in your finances or perhaps errors in billing and collection. By doing more frequent and regular reporting, you get to determine problems early on and find ways to fix them before they become bigger and more costly issues. You break down the load of end-of-year reporting, which also helps take away the overwhelming burden of collecting reports during tax season. It allows a more organized system of financial management for your business in the overall.