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P&L Health Check

Works with a yearly P&L (best) or a single month. Copy in a few lines and see each cost next to the typical range, your owner's net, real profit after a market doctor wage, and a rough value. Then save your report as a PDF.

Your P&L numbers

Takes about 5 minutes. Have your P&L (income statement) from your accountant or bookkeeping software open. Every number comes from the same report, for the same dates.

1

Which P&L are you using?

Last fiscal year or the last 12 months gives the truest picture. One month can swing a lot with big frame orders, slow insurance payments, or a holiday.
2

Money in

Use the total at the top of your P&L.

$
Money actually collected, not billed. Often called Total income, Total revenue or Net sales. Include exam fees, eyewear, contacts and other products.
3

Your costs

Copy each line from the same P&L. If a cost doesn't fit a box, put it in All other expenses.

$
Frames, lenses, contacts, lab, other products you resell. Often called COGS or Cost of sales.
$
Opticians, techs, front desk, manager. Not any OD pay.
$
Rent or mortgage interest, utilities, repairs, property tax.
$
Pay for ODs other than you. Leave blank if it's just you.
$
Everything else: marketing, software, insurance, card fees, supplies, accounting, equipment leases. Leave out your own pay, loan principal and depreciation.
4

Your own doctor work

So the clinic's profit is separated from your pay as a doctor.

$
A fair market wage for the exams you do yourself. Example: 180 days × $700 a day = $126,000. Always enter it per year; it's adjusted to your time period for you.
5

Patient numbers (optional)

From your practice software, for the same dates. Adds capture rate and collections per exam.

Runs in your browser. Nothing you type is sent to us or saved.

Your results

Fill in steps 1 to 3 and your results appear here, each next to the typical range. Step 4 adds your real profit and a rough value. Step 5 adds capture rate.

How it works

Monthly or yearly? Percentages work the same for any period, so a one-month P&L gives you the same kind of check. Dollar amounts are shown for your period and as a yearly estimate: one month is multiplied by 12, and year to date is divided by its months and multiplied by 12. A full year is most accurate, because single months swing with big orders, insurance timing and holidays.

Each cost is shown as a share of collections and placed against the ranges in the Clinic Numbers Cheat Sheet. The gold band on each bar is the typical range.

Owner's net is collections − all costs − associate pay, before you pay yourself for clinical work. Real profit then takes off a market wage for the doctor work you do, because a buyer would have to pay someone to do it.

Rough value is yearly real profit × 4 to 7, the multiple range US practice brokers report. Location, payer mix, the lease, and how much depends on you all move it. Treat it as a starting point for a conversation, not a price.

Tip: run it on last year and on this year to date, save both reports, and compare. The trend tells you more than any single number.

Educational estimates only. Not financial, lending, tax or legal advice. Numbers vary by location, clinic type and situation, and most published benchmarks are US. Check any decision with your accountant and lender.

Free

Want the benchmarks behind this?

The Clinic Numbers Cheat Sheet has the P&L ranges, the 7 checks before you buy a clinic, and 8 formulas to run on your own practice.

Send me the cheat sheet

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