Did This Owner Make The Right Call After His Staff Dropped the Ball on Inventory?

Dr. Milton had a problem on his hands and thought to call a fellow community business owner that he had become friends with through their local Chamber of Commerce.

“Hey Winnie, I have a problem that has never happened in the history of running my own practice — I was hoping you could offer me some advice,” Dr. Milton asked.

Winnie responded, “Sure, I’d love to — you’ve helped me so many times — what’s going on?”

“My accountant told me that we’re going to have to file an extension on my taxes because I have not yet provided them with last year’s final inventory — they can’t complete my taxes without it,” Dr. Milton answered.

“I’m familiar with the process — I have to provide my inventory to my accountant, too.” Winnie continued, “Go on…”

“My staff has always completed inventory on December 31 or January 1 so I can provide true year-end numbers. This year, for the first time ever, it’s April and inventory is still not done.” Dr Milton added, “I prepared them by bringing this up in early December, and I’ve reminded them several times since then.”

With an uncertain tone, Winnie replied, “That is kind of abnormal. It’s been three whole months — what’s the problem?”

Dr. Milton sighed, “Every time I ask, the answer is different — I’ve heard every excuse under the sun.”

“It sounds like the why is a whole separate issue.” Winnie continued, “The issue is that you need the inventory done — can you do it?”

“They could do inventory in the same amount of time it would take me to figure out how to do it.” Dr. Milton complained, “I’m only familiar with the exam part of the EHR — the back end. The inventory is in the front end of the system, which is where the staff works.”

Winnie asked, “Can you not report the current inventory? It can’t be that far off…”

Dr. Milton replied, “Last year when inventory was done, it was around net 50 frames off. That’s too far off for my comfort.”

“Oh wow, why do you think it’s off so much?” Winnie responded.

“Throughout the year all the errors add up — but I suppose it could even be theft,” said Dr. Milton.

“Why don’t you take the current inventory numbers and just deduct 50?” Winnie questioned, “That would take your current number and apply the same margin of error from a previous year, likely to get you pretty close!”

“It’s too late to do anything else. I do not want to file an extension — that would keep dragging this out and increase the bill I’ll get from my accountant.” Dr. Milton continued, “Your idea is the closest I’m going to get.”

“I’m so glad I could help you and finally return the favor!” Winnie concluded.

Dr. Milton replied, “Thanks so much — I’ve got some numbers to get my accountant! Then, I will have to get to the bottom of why the inventory never got done … I’ll see you at the next Chamber meeting.”

Michael D.
Eldersburg, MD

No, it’s not too much to ask. Yes, the presented solution is the best for now. Next year stay more on top of the staff until this is done. I mean every day and, as it gets closer, every few hours of the day making yourself so annoying they will do it or “heads will roll.” If the inventory is truly on a program, it literally should only take a few keystrokes to get done for the date it is needed. Perhaps next year create consequences for inaction (suspension, loss of paid time off, whatever) and be sure to put that in the employee handbook ahead of time.

Deborah T.
Austin, TX

Dr. Milton is not asking too much of his staff. This is something that must be completed every year, at the end of the year. He should remind his staff in early December, select a date that will work for his staff to stay after hours to complete and offer to have a quick dinner brought in since they’re staying late. He should have a go-to person that he can assign to make sure they will be ready to do inventory when the day comes. Since he uses some type of electronic system, he should try to run an inventory report for the last day of December. This would at least give him some type of idea. To prevent this from happening again, he needs to motivate his staff to get it done and explain the importance of getting it done. NO EXCUSES!!

Rick R.
Girard, PA

First, Dr. Milton didn’t ask too much since they’ve been doing the inventory since the very beginning of the business. The red flag here, “I have a problem that has never happened in the history of running my own practice,” is what’s concerning. What’s up with the staff that the inventory never got done?

Other than file an extension, which he doesn’t want to do, then it’s the only solution.

To ensure this doesn’t happen again Dr. Milton needs to find out why the inventory never got done in the first place. Waiting three months for it seems a huge mistake on his part. It is, after all, his business.

Amy F.
East Brunswick, NJ

Inventory is one of those things that I think the doctor should be aware of and understand but not execute. The doctor should be a doctor. It’s the optical’s responsibility to do the inventory. If it’s done consistently throughout the year, it shouldn’t be so much of a burden. My OCD allows me to look at the boards and tell immediately if anything is amiss. If you’re not like that, do it monthly. The doctor’s final solution is kind of a cop out. Hold your staff accountable. You’re paying them to do these things. Keep on top of your staff. Reminders, deadlines, threats if necessary.

Whitney H.
Missoula, MT

Firstly, since Dr. Milton asked his staff several times to do inventory, there really is no excuse that it wasn’t done. He mentions that he heard every excuse from them, but did not mention whether he issued a deadline for the project to be done. Had he issued a deadline for inventory, this problem could have been avoided. By providing staff a task that is clear and has a definitive deadline, providers can avoid the excuses that come along with open-ended requests. His final solution, while not perfect, would suit his needs for the tax year; however, implementing a plan and deadline for the next year would save time and decrease owner stress.

Jill C.
Port Orchard, WA

I find it completely unacceptable that your staff has totally disregarded your request to complete a task that they are fully aware is a necessity at year end. For you to even consider doing this yourself because of their failure is incomprehensible! You are paying your staff to complete tasks such as this, and they appear to be fully aware that “inventory” has to be done annually. The fact that they have just “blown this off” for three months is very concerning. If I were in such a position as this, I would call a mandatory staff meeting — select a date and time that inventory would be completed and delegate this task to the appropriate staff. I would address the importance of completing year-end inventory in the future, giving a specific date that it will be completed by every year. As a practice owner, you set the expectations for your staff. If they can disregard something as important as year-end inventory, what else will they view as unimportant?

Amy S.
Port Angeles, WA

No, the doctor is not asking too much of his staff. He should appoint this responsibility to the manager or lead staff member of the business. By making someone responsible it can only fall back on them and there should be no excuses on why it wasn’t done in a timely manner after the end of the year. I do think the doctor should learn all aspects of his business, so if situations like this do arise he is better prepared to handle them.

The doctor could do the year-end inventory himself and ask family or friends to come in and make the job quicker or he could ask at least one staff member to stay late to help out.

One way to make sure he is not losing so much inventory throughout the year is to take inventory of a specific brand before the frame rep comes to the office. This way inventory can be adjusted and missing frames located quicker over a few months instead of a 12 month span.