Financial literacy and your business health
Financial Literacy Month, which has been designated by the US government for April of each year since 2004, is often used to educate individuals about how to use their money wisely.
However, according to a study from Intuit, 40% of all small business owners, including those who run healthcare organizations, identify themselves as financially illiterate.
That’s why during this special month, it is also important to examine what financial literacy means to your medical practice.
So let’s brush up on some of the most important points of financial education when it comes to your healthcare business or clinic:
- Have a great accountant. Of course, an accountant’s degree and specialty is important, but also look for things like your rapport with the individual, and whether he or she will represent you if you’re audited. Once you decided on the best fit, schedule regular check-ins to stay abreast of where you are headed.
- Understand your cash flow. How is the money moving in your healthcare business? When is income coming in? When do you have expenses? How long does it take for receivables to finally be paid? Is there a way you can safeguard your business while waiting for those payments? (Inspira Financial can help with that.)
- Plan to leave. Another aspect that medical business owners should understand is that of business succession. What will happen to your business when you are ready to retire? You need to have the financial education that allows you to plan out what you want the next phase of your company to look like, as well as the knowledge to implement that plan.
Of course, these are just a few of the issues you need to understand for your business financial literacy.
Once you become a pro in your financial health, it’s time to share the wealth, so-to-speak. Many healthcare organizations are offering financial wellness resources for its employees, which help reduce stress in the workplace and shows a dedication to staff.