End of Financial Year for Health Practices
5 Tips to Make the EOFY Easy and Profitable!
The End Of Financial Year doesn’t have to be a frantic period of wishing we’d been more organised! Instead of being dragged through this time kicking and screaming, let’s use it to our advantage! There are actually some great things about the EOFY that can help us grow and improve our practices.
Here are 5 ways to make this End Of Financial Year period beneficial for your health practice.
1. Chase Up Outstanding Accounts
Of course, you want to have your books up-to-date for the EOFY, but did you realise that there is another reason to be on the front foot with your invoicing? If you invoice third parties, you’ll find that many of them are eager to pay before the end of the financial year (so that they can claim the expenses earlier). So use this period to improve your cash flow!
Get your invoices sent early and follow up all of your outstanding invoices. In Power Diary, you can do this by going to Reports > Financial > Invoices and Payments. Use the filters to select the date range you are interested in, and select Unpaid Invoices Only.
To send them simply click on the Cog and select Email Share.
Hint: If you want to view or edit the invoice without leaving the report, right-click the invoice number and select ‘Open in new Tab’.
2. Record Client Payments
The EOFY is a point in time when you want to have your books up-to-date. If you’ve received payments from clients but haven’t yet entered them, do this now so that your accounts are up to date.
Did you know that you can quickly apply a single, bulk payment to multiple invoices? To do this, go to Sales & Payments > New Payment, select the client and then add the payment. You’ll then see any outstanding invoices related to that client. Simply select the invoices you’d like the payment applied to and click Save.
3. Pay Outstanding Invoices & Bring Forward Purchases
Before the financial year ends, it’s a good idea to pay any outstanding invoices so that your accounts more accurately reflect the complete year.
You might also want to bring forward any purchases so that you can claim a deduction in this financial year. Do you need to order more stationery, signage, other supplies or even other services? If you’ll be paying tax this year, it could be smarter to bring these forward. Check with your accountant first, but you may also be able to prepay certain expenses and claim the deduction in the current financial year.
4. Claim All Your Deductions
Make sure you take some time to think through all the deductions you can legitimately claim in your business tax return, as it’s easy to overlook some of them. It can help to go through your bank and credit card statements to see what you’ve spent money on to help jog your memory.
5. Supercharge Your Referrals
The end of the financial year is also the perfect time to re-engage referrers who have not sent you a new referral in a while. Often, we might think of doing this at the end of the calendar year, but really this is not as effective as these practitioners are often distracted with Christmas, their own holidays, and they might even close down for a while. But the financial year gives you an excuse to make contact – while most people are still operating business-as-usual.
To use Power Diary to re-engage referrers, go to Reports > System > Inactive Referrers.
Simply enter your date range and voila – your inactive referrers, and their contact details will appear. You can even use Power Diary to create and send a letter to these referrers.
But whilst we’re naturally advocates for technology, sometimes an old-school approach actually works best. Try sending thank you cards for prior referrals and remind or update them on your availability and areas of speciality.
Making this effort to do this now sets you up for a great start to the new financial year.
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See, the End of Financial year doesn’t have to be so terrible!
With the right systems in place, it’s actually pretty easy to have everything in order.
It can also be a great time to mark a line in the sand, see where your practice is at financially, and use this time of year to your advantage.
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Sarah Sealey, Physiotherapist
Dr. Kristine Kafer, Clinical Psychologist