3 Ways to Improve Your Cash Flow Management

Caro cash flow blog

Small businesses often run on a small margin and are always looking for alternative ways to increase their cash flow. Optometry practices have many expenses to take care of, including malpractice insurance, building costs, and keeping up with new technologies and practices in ophthalmology. This past year has also caused many practices extra expenses to implement sufficient virtual technologies while also decreasing revenue as COVID made it unsafe for patients to come into the practice.

One of the best ways to stay on top of your finances is by improving your cash flow management. The more you know about your expenses and income, the better you can control them. Setting up recurring payments, reviewing your books regularly, and outsourcing your accounting can help you better understand your business finances and keep your practice in the black.

1. Set Up Recurring Payments

Every optometry practice has several recurring payments, including rent or mortgage. Set up your account and QuickBooks to autopay these payments at least ten days before they are due. The autopay feature means you won’t need to waste time every month managing these payments while setting up the recurring payment in your QuickBooks accounts makes it easier to see the effect of the payment on your cash flow.

2. Schedule Regular Accounting Meetings

You should schedule regular times to check your books. Work with your accountant to ensure that all your payments have been processed, all your patients have paid their bills, and your books are balanced.

You can also use this time to evaluate your spending. Many small practices run into financial trouble because their rent or mortgage is too high for their business. By regularly checking in with your accountant, you can determine if you need to make changes to balance your books.

Besides your regular meetings, meet with your accountant before making any large financial decisions, like purchasing expensive new equipment or moving to a new location. They can help you understand your past year’s expenses and income and determine whether a large purchase is financially prudent.

3. Use an Outsourced Accountant

You wouldn’t want your office manager to perform eye exams on your patients, so why would you expect an optometrist to manage their accounting? Financial accounting outsourcing gives you more time to focus on your business and your patients and save you money.

Tax deadlines and requirements sometimes change, and it's challenging to keep up with new regulations. A professional accountant ensures that you never miss a deadline and will also get you the maximum deductions possible. An accountant can help you understand your financial statements and examine your books to find places where you’re overspending or areas with a surplus.

They can also help you streamline your accounts payable, saving you valuable time.

Improve Your Cash Flow Management with Caro & Associates

To stay on top of your cash flow, work with an accounting firm with experience handling optometry practice books.

At Caro & Associates, we specialize in helping optometry practices control their finances and know what they need to succeed. Send us an email at info@caroandassociates.com or call us at (206) 497-0671 to set up an appointment and learn more about how we can support your practice.