Veterinary practice finance, explained
Six guides on the financial mechanics specific to veterinary practice, services versus retail, inventory as working capital, wellness plan deferrals, DVM production, and the widest valuation spread in practice healthcare.
A veterinary practice is two businesses in one set of books, and inventory is what separates them.
Veterinary practices run professional services and retail simultaneously, carry more inventory than any other practice vertical, collect at the counter rather than through receivables, and operate in the most consolidated segment of practice healthcare. Each of those changes what the accounting has to do, and the inventory question alone puts the vertical beyond a standard setup.
Looking for how we work with veterinary practices rather than the underlying mechanics? Veterinary practices →
The guides
Veterinary revenue cycle
Missed charges, prescription capture, declined estimates, the leaks with no aging report to point at them.
Cash FlowVeterinary practice cash flow
Inventory as the largest working capital position, wellness plan obligations, and the seasonal shape.
ProfitabilityVeterinary practice profitability
DVM production against compensation, inventory margin by category, ACT, and technician leverage.
Deferred RevenueVeterinary deferred revenue
The monthly-billing trap, front-loaded service delivery, and why buyers examine the unearned balance.
Finance RolesVeterinary bookkeeper, controller, or CFO
Bookkeeper, controller, or CFO, and why inventory handling is the disqualifying question.
Growth & Sale ReadinessWhat a veterinary practice is worth
3.5x to 6x against 12x to 15x, the current demand picture, and the path between them.
The veterinary 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.
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.