What is Profitdiagnostix - an overview
Historically, reporting accurately in any veterinary business has been very challenging, time consuming and inaccurate. It has been impossible to establish basic performance measures because all practice management systems work differently and produce different reports. The same applies for the accounting software that veterinary practices use, with different charts of accounts and different reports depending on the software used and the accountant that is used.
For example: How many full priced consultations should a single vet be doing per year? Superficially, one would expect that this should be really easy to measure as most practice management systems should be able top produce a report showing the number of consultations charged each year.
However, do you include zero priced consultations, and how do you distinguish between full priced consultations and repeat consultations?
If you were to ask 100 practices for this simple information, about 50% of them would give you the correct value, the other 50% would either include repeat consultations and zero priced consultations.
To make things more difficult, if you were to ask the same question to the same practices a year later, the 50% that gave the correct answer would be just as likely to give the wrong answer a year later - simply because a different staff member collected the information and used different criteria.
With the above example in mind, you can see that when looking at possibly hundreds of business performance parameters, it is in fact impossible to get accurate information about the health and efficiency of a veterinary practice with an acceptable level of accuracy.
To correct this issue, a team of accountants, veterinary surgeons and software developers got together to create a solution that would allow veterinary practices to measure their performance accurately. To do this, an INDEPENDENT system had to be created that could collect data from any practice management system and any accounting system and produce a consistent set of reports. The system had to give the same result regardless of whether a practice was using Rx Works, Vision VPM, Vetspace or any of the many practice management systems available.
Profitdiagnostix is a business reporting tool that collects data (information) from multiple separate software systems and puts it all together in one place. This allows users to analyse their data by looking in one place rather than having to search for information in multiple software systems. At the same time, Profitdiagnostix may 'clean up' some information to make reports more accurate and easy to understand. This also allows the reports that are created to be consistent.
For example, 2 vets may wish to compare their businesses at a conference. One of them may be good at getting vaccinations through the door, the other may be good at performing a lot of cytology procedures. In this way, they could help each other with their strengths. However, the sad truth is that most vets do not even know if they are good or bad at something because the information does not exist in any consistent format. With Profitdiagnostix however, the 2 vets could easily see where they are good and where they perform poorly even though they have different practice management systems, different accounting software and a different accountant.
Where is the original data? Generally data that is collected is from 2 types of systems 1) accounting systems 2) practice management systems.
Why do veterinary practices need Profitdiagnostix
What sort of KPI's are important for veterinary practices and how do they help to keep veterinary businesses profitable
Active clients
Full time vet equivalents - why is is so important to know what this is
Average client spend per year
Cash control - is all the money getting to the bank?
Wages - are they too high or too low
Client facing events and opportunities - how often is a vet in a consulting room with a customer
Average invoice value
Measuring the performance of individuals within a business
Understanding what a 'conversion' is
What is a profit and loss statement?
Why it is important to adjust a profit and loss statement to get accurate reporting
How does it work with accounting software and what are accounting software systems
Is the data safe and confidential
Can it damage my computers and server?
Where is the data stored?
When Profitdiagnostix collects data, it puts it into a web or cloud area, so that the information can be accessed easily using a web browser from anywhere. This is also much better than users being restricted to only viewing information when they are at a specific computer or address. Generally the servers that hold your data are in the same geographical region (country) as the users business.