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1.888.884.1506
Presented by: Karen Osborne, CPA, MBA
Lacher McDonald & Co., CPA’s
Courtesy of: Live Oak Bank
What are KPI’s??
Key Performance Indicators (KPI’s) are quantifiable measurements, agreed to
beforehand, that reflect the critical success factors of an organization
Key Performance Indicator’s
• Financial Statement
• Practice Management Software
• Additional KPI’s
How to Track Your KPI’s
Microsoft Excel
Financial Statement KPI’s
• Revenue
• Cost of Goods Sold
• Salaries & Wages DVM
• Salaries & Wages Staff (non-DVM)
• General & Administrative
• Net Income
Where to get Financial Statement KPI’s
• Properly formatted financial statements
– Use the AAHA Chart of Accounts
– Accrual based financial statements
– Show amounts on Income Statement (Profit & Loss) as a percentage of revenue
Caution
Financial Statement KPI’sMonitor as a dollar
amount• Revenue
Monitor as a percentage of revenue
• Cost of Goods Sold
• Salary & Wages – DVM
• Salary & Wages – Staff (non-DVM)
• General & Administrative
• Net Income
KPI’s - Revenue
Track increases and decreases in revenue
• Monitor changes in total revenue monthly, quarterly, and annually
• Monitor your sources of revenue
KPI’s – Cost of Goods Sold
• Track by type
• Are you adjusting inventory?
• Benchmark 20%-22% of revenue
– Deviations
KPI’s – Salaries & Wages DVM
• Pay should be recorded at gross amounts
– Does not include benefits or payroll taxes
• Benchmark 20%
– Deviations
KPI’s – Salaries & Wage Staff (non-DVM)
• Again, pay should be recorded at gross amounts
– Does not include benefits or payroll taxes
• Benchmark 18%-20%
– Deviations
KPI’s – General & Administrative Expenses
• What is included?
– Utilities, Employee Benefits, Advertising, Repairs & Maintenance, Interest, Depreciation, Amortization, etc.
• Benchmark????
KPI’s – Net Income
• Revenue – Expenses = Net Income
• Profitability
KPI’s – Practice Management Software
• Number of New Clients
• Doctor Productivity
KPI’s – New Clients
• Track monthly to identify trends
• Growth = 25-35 new clients per month per Full Time Equivalent Veterinarian
• AAHA *
– New clients per FTE Veterinarian
• Average = 246/year
• 75th Percentile = 307/year
*Financial & Productivity Pulsepoints, 7th Edition, AAHA
KPI’s – Doctor Production
• Track production by provider
– Examples
• Each individual doctor
• Hospital (for refills, food, etc.)
• Boarding
• Grooming
• Compare ATC’s across doctors
• Compare trends in ATC’s over time
Other Key Performance Indicator’s
Revenue Per FTE Veterinarian
• Calculation:
= 𝐴𝑛𝑛𝑢𝑎𝑙 𝑅𝑒𝑣𝑒𝑛𝑢𝑒
# 𝑜𝑓 𝐹𝑇𝐸 𝑉𝑒𝑡𝑒𝑟𝑖𝑛𝑎𝑟𝑖𝑎𝑛𝑠
• AAHA*
– Average = $516,000
– 75th Percentile = $593,000
*Financial & Productivity Pulsepoints, 7th Edition, AAHA
Other Key Performance Indicator’s
Revenue per Square Foot
• Calculation:
= 𝐴𝑛𝑛𝑢𝑎𝑙 𝑅𝑒𝑣𝑒𝑛𝑢𝑒
𝑇𝑜𝑡𝑎𝑙 𝑃𝑟𝑎𝑐𝑡𝑖𝑐𝑒 𝑆𝑞𝑢𝑎𝑟𝑒 𝐹𝑜𝑜𝑡𝑎𝑔𝑒
• AAHA*
– Average = $338/sq ft
– 75th Percentile = $418/sq ft
*Financial & Productivity Pulsepoints, 7th Edition, AAHA
Other Key Performance Indicator’s
Revenue per Hour of Operation
• Calculation:
= 𝐴𝑛𝑛𝑢𝑎𝑙 𝑅𝑒𝑣𝑒𝑛𝑢𝑒
(𝑇𝑜𝑡𝑎𝑙 𝑊𝑒𝑒𝑘𝑙𝑦 𝐻𝑜𝑢𝑟𝑠 𝑂𝑝𝑒𝑛 ∗52𝑊𝑒𝑒𝑘𝑠)
• AAHA*
– Average = $398/hour
– 75th Percentile = $515/hour
*Financial & Productivity Pulsepoints, 7th Edition, AAHA
Questions
1.888.884.1506
Presented by: Karen Osborne, CPA, MBA
Lacher McDonald & Co., CPA’s
Courtesy of: Live Oak Bank
