20/20 MONEY Understanding the Financials of Your Practice to Make Smart Business Decisions
On the show today is Amber Banks, co-founder of MW Banks Consulting. What’s awesome and unique about Amber is that she has an incredible depth of knowledge and experience in working with doctors to help them make smart financial decisions in their practice based on the financial metrics of their business. In this episode we “complete the life cycle” of a practice by talking about key financial considerations while still in school depending on whether you’re looking to buy an existing practice or start a practice cold, the key metrics of your practice that you should always understand, the most important financial statements to review on a monthly basis, and how your own “financial IQ” of your practice can actually influence the asking price for your practice when it comes time to sell! We also discuss how much cash you should keep on hand in your practice on a monthly basis and how the amount of cash that you have in the business can be a good litmus test for determining if it’s time to take the next step in your retirement savings strategies in your practice. We wrap up the conversation by talking about which financial metrics you should share with your team…if you choose to share them at all.
As a reminder, you can get all the information discussed in today’s conversation by visiting our website at integratedpwm.com and clicking on the Media Hub. While there, you can also set up a 15min pre-discovery conversation to learn a little bit more about what it means to work with our firm or download our popular ebook called “Five Tips to Financial Freedom.”
And with that introduction, I hope you enjoy my conversation with Amber Banks of MW Banks Consulting.
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