Financial Managementfor GP Practices

Barry PrendivillePartner

Nolan & PartnersChartered Accountants

www.nolanca.ie

PracticeManager.ie Annual National Meeting

Stillorgan Park Hotel

21 April 2012

Overview - areas covered

Revenue Audits

Practice Finances & Profitability

Banking Facilities

Revenue Audits

Revenue Audits Revenue’s focus on the medical

profession Basis for selection Recent developments – interview Preparation in advance of audit On the day – the audit Risk Areas

Revenue Focus Background – locums “Determining accuracy of a return,

declaration of tax liability or claim to repayment” (Code of Practice for Revenue Audit)

Cash receipts and expenses

Basis for Audit Selection Sector wide Late Returns Unusual features Insufficient drawings Random Third party information / comparisons

Recent Development Revenue interview

Per attached letter

Not a Revenue audit but not to be dismissed

Preparation for audit

On the day - the audit

Risk Areas Spouse & other family members on

payroll Pension contributions One bank account for practice and

personal Maintenance of accurate and complete

books and records

Any questions?

Practice Finances & Profitability

Practice Finances & Profitability Introduction Annual budget Cost base Top line growth – “category

management” Marketing / business development Measurement of revenue generating

initiatives

Introduction

Annual Budget Set your stall out before the beginning of the

financial year

Partner sign-off – psychologically important

Measurement of actual v budget

Management accounts

Cost Base Delegating area of cost base Empowering staff Areas to attack:

Light & heat Telephone audit Insurance Professional fees Etc.

Cost base constantly in focus

Top Line Growth Concept of “Category Management” Patient care Allocation of resources Purge on GMS income Additional income through existing

patients or Take on new patients

Marketing / Business Development Key area Branding – brand values Develop marketing strategy What influences your income? Qualitative market research Corporate account

Measurement of Revenue Generating Initiatives Key area for practice profitability Existing patients Incremental revenue streams Analysis / measurement over several areas,

e.g.: Income from each revenue initiative Income per consultation Income per patient Gross income per partner Etc.

Banking Facilities

Banking Facilities Overdraft

Focus on annual review date Term Loans Mortgages

Commercial – committed or demand Leasing

Tax efficient mechanism of financing surgery fit-out and purchase of equipment

Questions?

Contact DetailsBarry Prendiville

Nolan & PartnersChartered Accountants

301 Q HouseFurze Road

Sandyford Business ParkDublin 18

T: 01-2176510

E: barry@nolanca.ie

W: www.nolanca.ie