Let's continue the series on KPIs. Last time we discussed dollars of revenue per day.
The next thing I think you should track is not so much a KPI but rather it is a graphical vision of how your practice is going.
Buy a large sheet of graph paper — poster size. Along the horizontal axis put months — January, February and so on. On the vertical axis put dollars.
Now plot two lines. A black line which is the dollars you have collected month by month and a red line which is your expenses month by month. The gap between those two lines is the net revenue your practice has generated.
Do the lines ever cross. If they do, then you just worked for an entire month and lost money. Ouch.
Again, just as in the last article, look for trends. Are the lines getting further apart with time (a good thing) or are they getting closer together (a bad thing)?
Watch for part 4, coming up.