A FEW IDEAS FOR TRIMMING THE FINANCIAL FAT IN YOUR PRACTICE

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Although financial fees are not necessarily hidden, they can appear in unexpected places, such as small business accounts that have no monthly maintenance fees but do have transaction limits. Medical practices tend to have numerous monthly transactions that can be billed at small rates and could quickly add up to a big expense.
When overdraft, monthly maintenance and transaction fees stack up, it’s a good idea to tackle the nickel-and-diming effect of these fees. Begin by doing some research. Assess your practice’s banking activities and determine which banking institution offers services that are well suited for your practice and its needs.

Ways to Cut Costs

The American Medical Association suggests that if your practice is located in a building with other practitioners, sharing common service expenses, such as a drop box, can help cut costs for all involved. Also, by consolidating your practice’s accounts into one bank, you can reduce fees — and interest from the accounts can be used to pay these fees. Negotiating with your bank may also help reduce some fees if you can’t find a fair fixed rate.
There are multiple benefits of banking online for practitioners looking for lower costs and more convenience. Online banking eliminates running to the bank to order new checks or transfer funds between accounts. You can also monitor the balance of accounts easily with automatic alerts that can protect your practice from overdraft fees. Many financial institutions also offer Remote Capture services for check depositing. Typically, your bank will supply you with a check scanner which connects to your computer and a secure Internet connection. Your staff runs patient checks through the scanner, which digitally deposits the funds to your practice bank account.
Online banking can also make paying bills easier. Instead of sending checks in the mail and remembering multiple due dates, you can pay expenses automatically on a set schedule. In some cases, bills from certain vendors can be sent to your practice electronically. Another benefit of online banking is easy access to your practice’s account history.

Protecting Your Investment

Minimizing your costs keeps your practice financially lean and viable; however, sometimes the unexpected can happen. Natural disasters, such as hurricanes or floods that can damage your office and even your own health, can interrupt your business and can be very expensive if you are not prepared.
Here are some useful ways to support your practice during these difficult economic times:

• Line-of-credit loan. An unsecured line of credit does not require collateral and can be a useful tool for filling in gaps between insurance payments. When money is tight, this loan can help you continue payroll without interruption or pay for necessary but unexpected costs. Because unsecured lines of credit tend to have higher interests rates, it is wise to pay off these loans as soon as possible.
• Insurance. Property, liability, disability and business interruption insurance coverage may be another monthly expense; however, when the unexpected occurs, these are invaluable ways to protect everything you’ve worked hard to build.
• Business credit card. For new practices, this card can help establish credit. It can also provide overdraft protection for your business checking account. However, these cards can have high interest rates if the monthly balances are not paid off.

Source: MD News