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Sharing Financial Information With Your Team

July 2024 | admin

We’ve all heard the saying “don’t discuss money, politics or religion in polite company” but I think there’s something to gain by sharing some of your practice’s financial insight with your team. I’m not saying you need to have an open-book policy, but there can be several benefits to divulging a few key numbers.

Communicating financial information goes a long way to building trust between you and your team. By involving them in the process they feel valued, respected and invested. And employees who feel trusted and informed are more likely to be satisfied with their jobs and remain loyal to you and the practice!

When your team understand the financial health of your practice, they tend to be more accountable for their actions and take greater ownership of their roles and responsibilities, as everyone understands the financial targets and works together to achieve them.

Transparency in financial matters can also help cut down on gossip. If your team understands the why behind a delay in hiring or postponing an equipment purchase, they’re more likely to be patient when you tell them “not right now”. A team who understands the financial limitations and goals of the practice are more inclined to make decisions in line with the practice’s financial objectives, leading to more deliberate use of those resources. (I’m looking at those of you who have ever told someone they’re using too many Q-Tips!)

You don’t have to do this alone. Your team can collaborate more effectively to solve financial problems when they have a clear understanding of the practice’s financial situation. Employees who understand the financial goals and challenges may be more likely to propose innovative solutions and improvements. Seeing the direct impact of their work on the practice’s financial performance can be a real moral boost for your team.

Industry benchmarking is a great place way to ease into sharing financial numbers with your team. Start by comparing your practice’s performance against financial benchmarks to monitor if you’re meeting or exceeding those standards.

However, I’d encourage you to share more detailed reports as well, like:

Comparing the practice’s actual financial performance to the budgeted projections may help employees understand differences and work towards achieving budgeted goals.

Profit and Loss Statements which show your practice’s revenues, expenses and profits over a specific period. This information can help employees understand the overall profitability of the practice. This report may shed light on things like vaccine cost vs vaccine revenue. When your tech staff realizes how small the margins are, they might be more considerate/less wasteful when pulling up vaccines.

Sharing your practice’s Expense Reports provides a glimpse of your practice’s expenses and helps your team identify areas where costs could be reduced or better managed. For example, your team feels the crunch when their own electric bill hits $300 in the summer. Imagine if they knew the practice’s electric bill was $1,300! They might be more inclined to be mindful when turning off lights.

Tracking specific metrics, or Key Performance Indicators (KPIs), are crucial to the practice’s success. Monitoring client visits, average transaction value, and client retention rates helps your team focus on key areas that drive growth and can easily be measured month over month.

If sharing exact dollar amounts feels too invasive, consider sharing percentages, but by sharing any sort of financial information with your staff, you can create a more informed, engaged and motivated team.

Written by Meghan Bingham, CVPM