Why Your Practice Needs an Operating Budget

This presentation explains why an operating budget is vital for any veterinary practice aiming for profitability within a year and having the financial resources for long-term success. It offers an overview of the three critical financial statements every business needs, with a focus on the income statement. Using a veterinary chart of accounts, the presentation will break down the components of a practice’s Profit & Loss report—where those figures originate and how daily actions on the hospital floor influence those numbers. By defining what an operating budget is and outlining its key parts—revenue projections, fixed and variable costs, operating expenses, and net income or profit margin goals—the practice leadership will better understand how these elements support their strategic business plan. Building on this foundation, we will explore the key steps of creating a budget based on past performance and expected future events.

• Understanding common financial jargon and how it applies to a veterinary practice.
• How to utilize a veterinary Chart of Accounts.
• How to build a budget.
• Why measuring performance to budget is empowering for operational decision-making.