Session 9

Question 1

Budgeting

Answer 1

Planning expense and revenue and measuring these values against actual financial results

Question 2

What do you need to make a budget

Question 3

Economic cycle (business cycle)

Answer 3

Predictable long term pattern changes in national income.

Question 4

Cycles of the business cycle

Answer 4

1. Expansion
2. Prosperity
3. Contraction
4. Recession

Question 5

Six steps of budgeting

Answer 5

1. Determine the desired financial results
2. Analysis of the financial statements
3. Normalizing revenue and expenses
4. Budgeting revenue
   5.
   6.

Question 6

Determining the desired financial results

Answer 6

Measured by profit (revenue - expenses)
Specify earning percentage to gross revenue (divide profit by revenue)

Question 7

Analysis of the financial statement

Answer 7

Effective budget requires a thorough understanding of the practice’s financial resource.

Revenue

Expenses:
1. Personnel expenses
2. Variable Expenses/CoGS
3. Occupancy/Facility Expenses
4. Fixed/Administrative Expenses

Question 8

Normalizing the Revenue and expenses.

Answer 8

Remove any one-time, non-recurring items from the financials used to create the budget

And

Question 9

Budgeting revenue

Answer 9

Projecting the revenue the practice will generate in the following year.

Patient volume - a key driver of revenue growth. Some factors that influence patient volume include:

Fees scheduled

Question 10

Budgeting expenses

Question 11

Combining budgeted expense, revenue and marketing adjustments