Money Monday – the monthly P&L and KPI's

This is the really basic stuff – and some of you may want to skip over this post with a rosy glow of “we are already doing that.”
If so – well done.
Question 1:
“does either your internal financial manager or your external book-keeper/accountant produce a full profit and loss statement on a monthly basis (within 14 days of the month end) – including last month’s figures and year to date?”
Question 2:
“do you read and analyse the key performance indicators (KPI’s)?”
There is no excuse for not having the data available.
Whether it is Quickbooks, Sage or the new cloud-based Xero (and many look-a-likes), we live in an age of real-time financial reporting.
But it’s not enough to print off a P&L, take a look at sales and bottom line profit and then file away.
You have to analyse your KPI’s and, here at 7connections, we have even created an info-graphic to help you measure yourself against industry benchmarks.
If your lab, material, implant component, staff and marketing costs are straying away from the benchmarks – then questions must be asked.
Although we published the info graphic back in October – I’m repeating the link to the post here so that you can remind yourself.
These Money Monday blog posts will, I hope, build into a mini-series that will cover all the basics and more advanced tips on financial management.


Published by

Chris Barrow

Chris Barrow has been active as a consultant, trainer and coach to the UK dental profession for over 20 years. As a writer, his blog enjoys a strong following and he is a regular contributor to the dental press. Naturally direct, assertive and determined, he has the ability to reach conclusions quickly, as well as the sharp reflexes and lightness of touch to innovate, change tack and push boundaries. In 2014 he appeared as a “castaway” in the first season of the popular reality TV show “The Island with Bear Grylls”. His main professional focus is as Coach Barrow, providing coaching and mentorship to independent dentistry.