Many practices believe the only way to enhance their bottom lines is by increasing patient exams and sales. However, if we analyze the equation Net Income = Total Revenue – Total Expenses, we see reducing ostensibly fixed expenses can be a simpler and more straightforward approach.
1. Merchant Services – You are likely paying too much for merchant services. Losing a few extra cents on every swipe or tap may not seem significant, but it can accumulate to thousands of dollars annually. The solution is a simple switch that takes just a few minutes! Compare your current rates to ODs on Finance Merchant Services (merchant.odsonfinance.com).
2. Lab Costs – An optical lab should not be utilized simply if it is inexpensive. However, lab bills are a major expense for most practices. Compare and leverage different labs to ensure the highest quality and fastest turnaround times at the lowest price.
3. Tax Burden – Employing a skilled tax pro or CPA who specializes in optometry and can review your books may significantly reduce your tax liability. Taxes can be one of the largest expenses a business faces, and investing in an expert can be immensely valuable.
Owners tend to focus on increasing the number of patients and sales to grow a practice’s bottom line, as they should. However, by harnessing the power of cost reduction practices can achieve significant savings. Ultimately, boosting profitability leads to a more robust and financially healthy practice.
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