Optometry practice finance, explained
Six guides on the financial mechanics specific to optometry, optical versus clinical margin, vision plan collections, frame inventory, annual supply deferrals, and what consolidators pay.
An optical dispensary and an exam lane are two businesses. Most optometry books report them as one.
Optometry runs retail and clinical economics side by side under one roof, and the accounting decision that matters most is whether they are separated. Add vision plan write-offs, frame inventory as working capital, annual supply orders collected up front, and a consolidation market with a wide multiple spread, and the vertical has a distinct set of financial mechanics that a generic setup will not surface.
Looking for how we work with optometry practices rather than the underlying mechanics? Optometry practices →
The guides
Optometry revenue cycle
Vision plan versus medical billing, materials timing, and the recoverable revenue in coding discipline.
Cash FlowOptometry practice cash flow
The frame board as trapped working capital, lab payables, and the fourth-quarter benefit surge.
ProfitabilityOptometry practice profitability
Category margin, medical mix, and revenue per exam, the four levers that actually move profit.
Deferred RevenueOptometry deferred revenue
Annual supply orders, warranty plans, and in-house vision plans as liabilities rather than income.
Finance RolesOptometry bookkeeper, controller, or CFO
Bookkeeper, controller, or CFO, and the five optometry questions each role can answer.
Growth & Sale ReadinessWhat an optometry practice is worth
2.5x to 4.5x SDE against 6x to 8.5x adjusted EBITDA, and the six things that move you up the range.
The optometry toolkit
The checklists we actually use, what we ask for at intake, and what we check every month. Published in full, downloadable as Word files.
Diagnostics
General information for practice owners, not accounting, tax, legal, valuation or investment advice for your situation. MedPraxis CFO is not a CPA firm, a registered investment adviser, or a business broker. Talk to your own CPA, attorney or adviser before acting on anything here.