5 easy ways to check your finances are on track

By May 24, 2017Uncategorized
Accounting charts and graphs

High quality information is the key to sound financial management. Clear and concise reports, which show the headline figures without too many distracting details, are ideal for controlling your finances on a day to day basis.

Like the dials on a flight deck, they make it easy to check you are on course and spot the early signs of trouble. Displaying figures as charts or graphs helps to highlight underlying trends and can give partners a greater insight into the finances.

With modern accounting software, you can quickly produce customised reports in any format – consider what key indicators you need and how often you need to see them.

In addition to the standard sets of figures, here are five suggestions for reports that can help you keep a tighter grip on the finances:

1. NHS income – comparing your monthly Exeter PMS or GMS statements can help you spot areas where you have underclaimed or where claims have not been paid. This is particularly important as many payments to practices are automated and if the claim is not coded correctly, it will not get paid. While it might not be possible to download the figures directly from the statement, it is worth the trouble to input them by hand in your accounting system. You can also save the reports in the system by attaching them as a pdf file.

2. Site reports – practices operating from different premises can compare income and outgoings for each site which can highlight potential savings.

3. Contract wins – similarly you can distinguish between revenue from different sources and allocate costs against each, which allows you to monitor the profitability of different contracts.

4. Drugs profitability – this is an area where practices often fall down on. Monitor income and outgoings and compare against the original claims to ensure they have been paid in full.

5. Cashflow – setting up regular cashflow reports will not only prevent the practice running out of money but will also help you set GPs’ drawings at the right level.

Hall Liddy is helping clients to move to the cloud-based Xero system. We can set up customised reports to help you monitor the key figures and keep you on track throughout the year. To find out more, call Andy Pow or Lee Simmonett on 0161 832 7571 or email andy@hallliddy.co.uk or lee@hallliddy.co.uk.

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