How to Actually Use Your P&L
Most practice owners either ignore their P&L (Profit & Loss) statement—or they glance at it and move on. But if you’re not using it to make decisions, you’re leaving money on the table or just burning it up into vapor. You can significantly change the financial situation of your practice if you understand how to read a P&L and connect strategic decisions and actions to it. Don't stray from what makes you feel uncomfortable but accept that you need to know every line item and how it affects your bottom line.
Here’s how to make your P&L one of your most powerful tools.
What to Review Weekly
Month-to-date Revenue: Are you on pace to hit your revenue goal?
Expenses: Any unexpected increases or subscriptions piling up?
Profit Margin: Is your profit tracking in the 20–30% range or slipping?
Cash Position: Do you have enough cash in the bank to cover upcoming expenses?
What to Review Monthly
Revenue by Provider & Carrier: Know who's making your practice money and who is actually paying you.
Profit Margin: Did you hit your revenue and profit goals? If not, then focus on why that didn't happen and what is going to be done about it next month.
Marketing ROI: How many new patients did you get last month vs the total marketing and ad spend costs?
Next Months Projects: Forecast next months P&L, set your sales forecast, know your upcoming expenses, and get a clear idea of how much profit your practice will make.
What to Watch For
High payroll but low output
Expenses creeping up or new ones showing their face
Revenue flat or declining despite growth in staff or marketing
How to Build the Habit
Block 30 minutes every week to review your P&L.
Use a simple checklist to guide your review.
Make one small decision each week based on what you see.
Final Thoughts
You don’t need to be a numbers person—you need to be a practice owner who leads with data. MindPractice can help you structure your P&L, understand how to read it, and take action that increases the bottom line.
Take the Next Step: Let’s Talk
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Our Business Coaching services are designed to help practice owners regain control by getting laser focused on the priorities that generate revenue and profits.
Schedule a free 15-minute call to discuss your goals and help you map out your next steps.
