Keane Management Accountants LLC

High collections.

Full schedules.

So why is there never enough cash?

It's the question we hear most from medical practices.

Over the next couple of weeks, we are breaking down the 7 costly accounting mistakes we see practices make, one at a time.

The Bottom Line → You can't fix what you don't measure.

First one lands next week!

“You don't have a revenue problem.”

I had a call with a practice regarding their cash outlook.

I pulled a Q1 budget vs. actuals report from QuickBooks.

Income was 95% on target.

But expenses were WAY beyond budget

The culprits?

Medical supplies cost increase.

Payroll too high.

That's why a budget matters.

It's your early warning system.

We can now adjust the expenses accordingly.

We treat budgets more like forecasts.

This is what you want to happen.

And if it doesn’t track, then we move fast to change things.

Cash is oxygen in a business.

Here's my rule:

- Keep 2 months of expenses in cash.

Above that → do what you want.

Below that → you're treading water.

And you need a line of credit.

Three payroll cycles in one month can sneak up on you.

The best tool?

A 12-month cash flow forecast.

Look ahead. Not behind.

Good accounting isn't data entry.

It's catching problems before they're crises.