12 Week . Challenge
Welcome to the Profit First Assessment!
6 MIN READ
Welcome to the Profit First Assessment! We are excited to join you on your journey to a Purposeful & Profitable Practice!
The Profit First Assessment is your tool to evaluate your practice’s results or your startup strategy and know if your plan will allow you to reach your practice and income goals!
Determine your Assessment Time Frame
For the best results, you should use data for the past 12 months, but if that is not available, you can analyze a period as short as a quarter.
Warning: Be sure to be consistent and use the same period for all the data collected.
What Numbers Do I Need?
The Profit First Chiro Assessment will ask you to gather numbers for crucial aspects of your practice finances. These numbers will be entered into the Profit First Chiro Form and used to generate your personalized roadmap to profitability. You will collect these numbers from your Profit and Loss statement (P&L). You will want to start by running your P&L for the period you wish to analyze. Remember that depending on your tax structure, you might have to check your Balance Sheet’s Equity Section for Owner Draws or distributions that would be considered Owner’s Compensation.
You should have received a link to access the form shortly after your purchase.
Service & Product Revenue
Service and product revenue is the total revenue generated in your practice, specifically from selling your products and services over the period you selected to analyze.
Paid to Associate DCs or Other Providers
The total compensation amount that your practice paid to associate DCs or other providers in your practice. Other providers can include providers such as massage therapists or acupuncturists. This compensation is for services provided to your practice over the period you are analyzing.
Owner’s compensation is the money your practice pays you for the services that you provide to your business. To start, you want to find the sum of your complete compensation and add it to the owner’s compensation section. Remember, this is not always just your payroll. Were any expenses that the practice covered for you for your own use? These items can be things like a car, special meals, traveling, etc.
How much did your practice pay in income taxes? Depending on your business structure, your practice may not pay taxes directly; the income may be part of your personal income tax return. For taxes incurred, only enter the amount you have been reimbursed for as a practice owner for taxes paid or checks written directly to taxing agencies.
Operating Expenses are what you paid for all the expenses you incurred to run your practice. It is essential to ensure that this does not include payments included in Owner’s Compensation or Taxed Incurred. Operating expenses include staff payroll, clinic expenses, software expenses, rent, utilities, software subscriptions, etc.
Automatically calculated numbers and what they mean:
The Profit First Assessment will automatically calculate the amount of Profit generated in your practice.
Profit First Chiro Roadmap
Is one of your goals to have a financial system that simple, easy, and allows you to make the best decisions to increase your practice's profitability?
With the Profit First Chiro Roadmap, you'll learn the five key numbers that every chiropractor needs to know to make informed decisions about their practice. You'll also get a personalized roadmap that shows you exactly how to achieve profitability.
Stop struggling and start making a profit with the Profit First Chiro Roadmap. Get started today and see the results for yourself!