As a trusted financial advisor in many professions, LGT has an educated insight on many ways profits can be tied up or places of profit not being utilized.
In the healthcare field, many issues can arise if the financial information is not correctly billed and managed, causing the clinic to lose money. There are a few things that can help clinics to maintain their profits starting with prescreening patients. By knowing a patient’s health care provider prior to their appointment, the medical office will know if their insurance will cover the visit or not and tell the office the correct coding needed to bill the provider. If this is done ahead of time, the office can avoid accepting patients whose insurance is not accepted or cannot pay, therefore, preventing the office from losing money.
Another common problem arises in the accuracy and timeliness of claims to insurance companies. This problem can be prevented by prescreening patients and by double checking with the patient’s provider on the correct coding numbers. Frequently clinics bill a code and months later receive a notice that it was billed incorrectly and therefore cannot be processed, then they must contact the patient and more conflict arises. Also, it is important for the clinic to code in such a way that ensures they are billing for the level of service they provide.
Missed appointments are often a problem health clinics are faced with. This can be avoided by confirming with patients the day before their appointment, therefore, the clinic can guarantee a full and profitable work day. The clinic can also increase their income by extending hours and by accepting weekend appointments.
There are many ways that health clinics can find new avenues of profit by considering what equipment is worth buying instead of renting. If it is something the clinic is in need of often, it would be better for them just to buy it rather than continuously paying for it. This can also be a consideration for the building space the clinic is in.
In construction, cost control is extremely important. There are certain fixed rates that must be in place to operate, but the variable costs need constant observance and control in order to increase the bottom line.
These are evaluated with a pre and post completion analysis to compare the estimated budget and timeline for accuracy. Some of these costs may be in renting equipment which could possibly be eliminated or lessened by determining which tools are needed on a regular basis and deciding to buy these instead of constantly paying the leasing expense. During tough economic times, employee evaluation becomes imperative. If your cost analysis employee is predicting costs that are far off from the actual cost, he may need to be replaced. It also comes down to whether you want to hold on to some employees that are good workers or do you shorten your pay roll.
In a general business, the rent or buy situation is often something that needs to be considered when managing your expenses. This can also be considered a possible way to increase your profits by buying your building and leasing extra office space. Incorrect billing can also get your business into some difficult situations, so it is always something that your accountant and budget analyzer needs to keep a close eye on, otherwise you could be wasting time and resources. Making the decision to keep or lose employees occasionally becomes an issue companies are faced with, it is tough to say what the right option to make is, but it is never beneficial for the company to keep someone on just because they have seniority. To hold on to employees that no longer bring value to your business will only bring you down and set a bad example for new hires.
New profits can often be found by opening up to new opportunities such as extended work hours. An additional avenue that a business can take in order to increase their profits is to use the best talents and skills your company has to your advantage. For example, if you have a billing manager that always does an excellent job, consider offering this service to other companies. Investing into something you have expert knowledge in can always be a smart way to increase your profits, and you can easily monitor and understand your investment.
Another smart business move is to balance out the debt. When a company has excess cash, it would be more beneficial for them to use this in order to pay off debts rather than carrying it around longer. Some believe they need to keep this debt in order to keep open bank lines, but the superior move is to secure a bank note with the excess cash that has a lower interest rate.
There are many ways that you can lose track of profits or find new ones. Make sure you are taking advantage of every opportunity that presents itself and closely monitoring expenses so that you are being as profitable as possible.
Seek the services of a legal or tax adviser before implementing any ideas contained in this blog. To reach a financial advisor at Lane Gorman Trubitt PLLC, call (214) 871.7500 or email email@example.com.