Jacob Courtright, Author at Whalen & Company, CPAs

Strategies for Business Growth and Expansion

Jacob Courtright on July 5, 2023

Growing your business is a challenging but rewarding endeavor. It takes hard work, dedication, and a clear plan. If you’re ready to take your business to the next level, here are some proven strategies for growth and expansion:

Define your goals. What do you want to achieve with your business? Do you want to increase sales, expand into new markets, or launch new products or services? Once you know your goals, you can develop a plan to achieve them.
Understand your target market. Who are your ideal customers? What are their needs and wants? Once you understand your target market, you can tailor your products or services to meet their needs.
Market your business effectively. Get the word out about your business and your products or services. Use a variety of marketing channels, such as online marketing, social media, and traditional advertising.
Provide excellent customer service. Make sure your customers are happy and satisfied with your products or services. This will help you build loyalty and encourage repeat business.
Invest in your business. Invest in your business by upgrading your equipment, hiring new employees, or expanding into new markets. This will help you grow your business and reach new heights.

In addition to these general strategies, there are a number of specific business development strategies that you can use. Here are a few examples:

Market penetration: This strategy involves increasing your market share in your existing market. You can do this by increasing your marketing efforts, expanding your distribution channels, or offering new products or services.
Market development: This strategy involves expanding into new markets. You can do this by entering new geographic areas, targeting new customer segments, or selling your products or services online.
Product development: This strategy involves developing new products or services. You can do this by expanding your product line, offering new features or benefits, or creating new products or services that meet the needs of new customer segments.
Diversification: This strategy involves expanding into new lines of business. You can do this by acquiring new businesses, starting new businesses, or entering into joint ventures.

The best growth and expansion strategy for your business will depend on your specific situation. However, by following the strategies outlined above, you can increase your chances of success.

Regardless of the strategies you deploy, we highly encourage you to:

Be patient. Growing your business takes time and effort. Don’t get discouraged if you don’t see results immediately.
Be flexible. Things change, so be prepared to adapt your plans as needed.
Be persistent. Don’t give up on your dreams. Keep working hard, and you will eventually achieve your goals

Accounting Best Practices for Startups

Jacob Courtright on July 5, 2023

Starting a business is an exciting adventure, but it’s also a lot of work. One of the most important things you can do to set your startup up for success is to establish sound financial management practices. This will help you track your income and expenses, make informed financial decisions, and grow your business sustainably.

Here are some accounting best practices for startups:

Use accounting software. This will make it easy to track your finances from anywhere, and it will also help you to stay organized. Many different accounting software options are available, including cloud-based ones, so you can choose one that fits your needs and budget. Need a recommendation? We recommend looking into our favorite one, QuickBooks.
Set up a separate bank account for your business. This will help you to keep your personal and business finances separate, which is important for tax purposes. It will also make it easier to track your business expenses.
Track your income and expenses. This is essential for understanding your financial health and making informed financial decisions. You should track your income and expenses on a regular basis, and you should keep all of your receipts.
Create a budget. A budget will help you to track your spending and make sure that you are not overspending. There are many different budgeting methods available, so you can choose one that works for you.
Get regular financial advice. Connect with your Whalen advisor; they can help you stay compliant and provide you with essential business planning.
Pay attention to cash flow. This is the lifeblood of your business, so it’s important to make sure that you have enough cash on hand to cover your expenses.
Don’t be afraid to ask for help. There are many resources available to help startups with financial management.

Following these accounting best practices will help you to establish sound financial management practices for your startup. This will give you the foundation you need to grow your business sustainably and achieve your financial goals. Don’t be afraid to reach out for help if you need it. Contact Us!

Turning receivables into cash

Jacob Courtright on July 5, 2023

It’s common for high-growth and seasonal businesses to have occasional shortfalls in their checking accounts. The reason relates to the cash conversion cycle — that is, it takes time to collect on customer invoices. In the meantime, of course, employees and suppliers want to get paid. The “cash gap” is currently getting wider for many companies. A recent study by CFO / The Hackett Group shows that the cash conversion cycle increased from 35.2 days in 2021 to 36.4 days in 2022. To add insult to injury, interest rates, and many operational costs are rising.

Fortunately, when cash is tight, small business owners can sometimes turn to receivables for relief. Here are some strategies for converting outstanding invoices into fast cash to pay bills.

Applying for a line of credit

A line of credit can be collateralized by unpaid invoices, just like you pledge equipment and property for conventional term loans. Banks typically charge fees and interest for securitized receivables. Each financial institution sets its own rates and conditions, but these arrangements generally provide immediate loans for up to 90% of the value of an outstanding debt and are typically repaid as customers pay their bills.

For example, a custom manufacturer had difficulty making payroll after two of its large clients delayed payment on outstanding invoices. A local bank gave the company a line of credit for $80,000. To secure the loan, the company was required to put up $100,000 in unpaid invoices as collateral and then repay the loan, plus fees and interest, once customers remitted payments.

Factoring receivables

Factoring is another option for companies that want to monetize uncollected receivables. Here, receivables are sold to a third-party factoring company for immediate cash.

Beware: Costs associated with receivables factoring can be much higher than those for collateral-based loans. And factoring companies are likely to scrutinize the creditworthiness of your customers. But selling receivables for upfront cash may be advantageous, especially for smaller businesses, because it reduces the burden on accounting staff and saves time.

For instance, a wholesaler faced cash flow issues because customers were paying bills between 60 and 90 days after issuance. As a result, the owner used a high-interest-rate credit card to make payroll and spent at least three days a month chasing down late bills. So, the owner sold off roughly $200,000 of the company’s annual receivables to an online factoring firm. This saved the company hundreds of personnel hours annually and allowed it to stop building up high-rate credit card interest expenses, while considerably easing cash flow concerns.

We can help

Before monetizing receivables, banks and factoring companies will ask for a receivables aging schedule — and most won’t touch any receivable that’s over 90 days outstanding. Before you write off your stale receivables, call customers and ask what’s happening. Sometimes you might be able to negotiate a lower amount — this might be better than nothing if your customer is facing bankruptcy. If all else fails, you might consider a commission-based collection agency or collection attorney.

Contact us to discuss your delinquent accounts receivable and other cash flow concerns. We can help you find creative solutions to convert receivables into fast cash.

The importance of collecting and analyzing patient data

Jacob Courtright on July 5, 2023

In today’s healthcare landscape, data is king. Data is crucial to keeping track of the business aspects of practice and plays a role in improved patient care. By collecting and analyzing data, healthcare providers can gain valuable insights into their practices, improve patient care, and make better decisions about resource allocation.

Here are three reasons why collecting and analyzing patient data is essential:

Improved patient care: By collecting and analyzing patient data, healthcare providers can identify trends and patterns in offering care at their offices. Auditing treatment plans improve patient care plans and ensure patients receive the proper treatment.Audits can assist providers in identifying diagnosis and treatment coding errors. Audits may reveal codes that insurance payers routinely refuse. It is common for providers to diagnose and plan treatments essential to the patient’s well-being; however, patients may inquire about insurance coverage and find they will have to pay for the proposed treatment themselves. This discovery may cause patients to avoid necessary treatment. Data analysis will uncover these discrepancies and help practitioners develop communication skills targeted at counseling patients.
Better decision-making: By analyzing data, healthcare providers can make better decisions about resource allocation and identify areas where resources are needed most. It is not uncommon for technology to advance in medicine. Changes in technology can drive changes in personnel and materials. Watching for opportunities to utilize technology to assist in patient care will assist providers in prioritizing cash allocations in the office. In dentistry, for example, scanners have changed how providers take impressions, which changes the need for impression materials, shipping costs, personnel use, and turn-around time for lab work. Many offices realized cost savings when scanners were purchased. Additionally, providers can run audits on specific codes to determine that fees align with service costs and make appropriate changes.
Increased efficiency: By collecting and analyzing patient data, healthcare providers can streamline their operations and increase efficiency. This information can identify faulty processes and help eliminate waste. Reduced waste helps improve the entire healthcare system.

The importance of collecting and analyzing patient data is evident. By using data to improve patient care, make better decisions, and reduce costs, healthcare providers can improve the overall health of their patients and introduce oversight in the healthcare system by managing their offices more efficiently.

Collecting and analyzing patient data is a powerful tool that can improve healthcare. By using data wisely, healthcare providers can make a real difference in the lives of their patients.

Best practices for managing patient appointments and scheduling

Jacob Courtright on June 30, 2023

Patient appointment scheduling is an essential part of any healthcare practice. It can be a daunting task, but it is crucial to get it right.

Here are five best practices for managing patient appointments and scheduling:

Use patient scheduling software: Patient scheduling software can help you automate the scheduling process. Software products that let people choose from available time slots can help relieve the stress of finding appointment times. These products give the front staff time to think about appointment requests in terms of the overall schedule and ask providers about the appointment timing if there are scheduling conflicts. Self-serve scheduling helps patients feel like they have some autonomy about the appointment instead of feeling pushed into a time slot that is not best for their schedules.
Set clear appointment policies: Ensure your patients know what to expect when they schedule an appointment. Be sure any communication includes the types of appointments you offer, the length, and the cancellation policy. Providers should enforce strict policies that prevent front staff from providing medical advice or quoting fees. Take time to work out wording that redirects the patient to what they can expect, the excellent service they will receive, and the benefits of being a patient at the office.
Be flexible: Sometimes, patients need to reschedule their appointments. Be flexible and work with your patients to find a time that works for them. With this in mind, remember that broken appointments are costly, and the front staff should strategically schedule and look for ways to fill gaps created by no-shows. One creative solution for redeeming broken appointments is to offer patients already in for treatment some additional time to finish other treatments without rescheduling. If a patient is already numb in one quadrant, they may appreciate the doctor being willing to restore a tooth next door if extra time is available. Also, keep a list of people who are able and willing to come for treatment on short notice. Many retirees are flexible, and some patients who live close to the office or work from home may be able to fill in gaps quickly.
Communicate with patients: Keep your patients informed about their appointments. Send them reminders and confirm their appointments.
Track your appointment data: Track your appointment data to see how well your scheduling works. Tracking data will help you to identify areas where you can improve.

Following these best practices can improve your patient appointment scheduling and provide a better patient experience.

Author: Jacob Courtright

News & Tech Tips

Strategies for Business Growth and Expansion

Accounting Best Practices for Startups

Here are some accounting best practices for startups:

Turning receivables into cash

Applying for a line of credit

Factoring receivables

We can help

The importance of collecting and analyzing patient data

Best practices for managing patient appointments and scheduling