Time to Take Out the Trash...

I was sitting in Panera this morning enjoying a cup of coffee and a bagel, pondering the world around me. The meetings, the deadlines, the projects...all the stuff we just have to get done.

After awhile I found myself staring at the backrest of the booth across from me for what seemed like several minutes, and after I came to, I realized it was the first time in several weeks that I had just been "in the moment."

It's such a rare occurrence these days to just be present, at least for me...how about you? When you're not thinking about what you should have done or what you could do, but just being silent, just being present and embracing the now.

When was the last time you had total focus on the patient lying in front of you? Not thinking about the next one coming in, or what's going on at the front desk, or the event you're gong to later that night...

Just that one.

Distractions can be so powerful and when we let ourselves get consumed by these distractions, they indeed become a reality.

Get clear today, this week and this month. Be totally present with your patients, your family and loved ones.

I think you'll enjoy this clip from Peaceful Warrior, it brings a nice perspective on our discussion:




By the way, if you like what we've been doing here, let us hear your feedback...

Spring Lyceum 2010 -- April 8-10

Today's blog is all about shameless plugs...

It's about Life University's Power Up weekend to be held April 8-10 and I've gotta tell you, it will be fantastic. Below are descriptions of the events going on that weekend. Join us to be inspired and informed by Chestnut, Burnier, Donka, Riekeman, Will Bowen, Doornick, and Peterson. For more information click here. This is a can't miss event and I look forward to seeing you there!

Lyceum 2010

The world is waiting for you to become extraordinary! Lyceum 2010 will empower you to lead your life with vision, commitment and Lasting Purpose that will transform you and your practice. Come join us for inspiring lectures, an interactive Thursday night opening ceremony, fireworks, fellowship and more that will enhance your personal and professional life. Take back the energy and passion you gain from this weekend to your practice and get ready for explosive growth!

LifeSource Octagon

The first major think tank created by the chiropractic profession which brings together the world’s greatest thinkers to address problems from health care to education to human interaction based on a philosophy of Vitalism. This year’s conference will bring together health care educators, practitioners, economists, philosophers, ethicists, and politicians to write a policy paper on the inclusion of Vitalism as a basis for addressing the health care problems of the nation. They will report on their work at the Power Up weekend.

LIFEforce

This dynamic team of 1000 doctors is committed to building enrollment at Life University. Quarterly, they gather at the University for a weekend to learn from world renowned speakers and participate in practice growth forums. The result is a deep sense of purpose and passion, an exchange of practice growth resources and a chance to affect the lives of prospective students and the profession. You are invited to attend this life changing experience.

Life Leadership Weekend

Doctors…do you have practice members who you believe could be great Chiropractors? If so, send them to Life Leadership Weekend, an experience that will change their lives! Life Leadership Weekend focuses on prospective students and engages them in the vision of themselves in the chiropractic profession and their education at Life University. Do your part to replace yourself in this great profession and create a bigger vision for a healthier world by referring a student to this amazing program.

"Red Hat Day"

Join us to celebrate Dr. William Harris' legacy of giving out of a sense of abundance. This memorial event raises awareness on the importance of philanthropy and will leave you with a stronger belief in the greater good. "Those who believe, achieve!"

Talk The TIC

This is an exciting international competition among Chiropractic students, the primary focus of which is delivering the Chiropractic message. The true reward for entering the competition is the discovery of one’s voice. Come see the next generation of Chiropractors find their voice, hone their message, and emerge as champions who are ready to enter the world.

Who is Your Most Important Customer?

Break down the patients in your practice by age group. Who would you say is the most important? Some would argue that it’s the 68 year old in phase 93 of subluxation degeneration who is on 17 different medications and is suffering on a daily basis. Some would say it’s the next one lying on the table that you give 100% focus and attention too.

And while I’m certain your love, focus and intention is to give the above examples the best care possible, let me argue a minute for children. If there’s an answer to the healthcare dilemma that is plaguing our nation, it’s our children.

The statistics are overwhelming aren’t they? Childhood obesity and diabetes are skyrocketing out of control. Prescription drug use levels that are astonishing. Unhealthy diets, lack of regular exercise, poor sleep, and most notably, vertebral subluxation from horrible birth procedures are leading our youth to disaster.

It’s a simple solution really…make it your mission to check every child in your community. Plan marketing events with schools, give lectures to parent groups, participate in programs that are kid-centered, make sure that your parents are bringing in their children.

Not only will your practice grow, you will have contributed positively to the future health of your community and the world. Who knows, there may be some children inspired to become Chiropractors!

In simplest terms….it’s a legacy plan. It’s a gift that you can be proud to have created for your community and the world.

You Can't Do It Anymore...

One of my favorite marketers and authors Seth Godin wrote in his daily blog today about "phoning it in." You know, just doing the minimum necessary to skate through your life not wanting to really make the effort to be remarkable.

I guess it prompted me to ponder whether you Chiropractors and students out there are "phoning it in" to the people you serve.

Here's the thing...I know you are.

All the time? Of course not. But you are some of the time, and you know what? You can't do it anymore. And you know why? Well...you know why. Lost customers, lost revenue, and above all else, the lives of the countless suffering that need you.

Make a commitment right now to be laser focused with every single patient, every single action, every single time, no matter what. It is a difference maker and the magic it creates for you and your practice will be extraordinary.

Understanding Financial Statements

Today's blog gives some more pragmatic information on your business. They can't nor should all cover the soft skills right?

Financial statements are an important management tool. When correctly prepared and properly interpreted, they contribute to an understanding of the current financial condition, problems, and possibilities of a company.

What does the bank look for when processing a credit application?

• Immediate liquidity (cash) and how cash is being used in the business’ operations
• Assets you have available to use as collateral
• Long-term earnings potential (ex. how much profit will this business likely make in the future?)
• The cash available to pay interest on a loan
• Cash you have available to repay the principal of a loan
  

There are three basic financial statements:

• Balance Sheet
• Income Statement
• Statement of Cash Flows

The Balance Sheet

This is sometimes called the Statement of Financial Condition or the Statement of Financial Position. It represents the financial position of the business entity at a moment of time – a snapshot. Most often the balance sheet from one or more preceding years is presented to provide meaningful information on how the company is performing.

The Balance Sheet is so named because it represents the following equation:

Assets (Resources of the business) = Liabilities (Amounts owed) + Equity (Deficit) (net worth (positive or negative)

Assets increase or decreases as resources are bought, disposed of, become more or less valuable, or are used in the course of operations.

• Current Assets are those assets of a company that are expected to be realized in cash, sold or used during the next 12 months. These assets generally include cash, accounts receivable (ex. from patients or insurance companies), inventories (ex. healthcare products and other items you’re selling) and certain costs such as insurance, security deposits, or rent paid in advance.

• Property and Equipment are assets with a life greater than one year like computers, adjusting tables, x-ray equipment, etc. that are used in the regular operations of the business. A good rule of thumb is to expense items less than $1,000 to the income statement instead of recording as an asset.

• Accumulated Depreciation is the aggregate of charges to expense or to write-off the cost of property and equipment over its estimated useful life. It is the result of a bookkeeping entry and does not represent any current cash outlay. Under generally accepted accounting principles (GAAP), we have to expense property and equipment as it is being used. For example, if you expect a computer to last 3 years, you write 1/3 off each year to depreciation expense. Land is never depreciated.

Liabilities increase or decrease as obligations to creditors are incurred or repaid.

• Current liabilities are those obligations that are reasonably expected to be paid within one year using current assets. These liabilities generally include bank debt, accounts payable, income taxes payable and accrued expenses such as salaries, retirement plan contributions, and interest. The balance in a liability account at any given time is the amount of money the company owes. For example, the company owes Bank of North Georgia $20,000 for equipment on February 1^st and makes a payment of $1,500 on February 28^th. Of that $1,500 payment, $500 is interest and $1,000 is a reduction to the loan balance. So, the liability on the balance sheet as of 3/1 would be $19,000. If the bank wants to see a balance sheet with the current part shown separately, your accountant could figure out the next 12 months’ principal reductions and show them in a separate liability account. So, you would have two liability accounts that, if you add them up, equal the $19,000. One liability account would show up in “current liabilities” and the other would be in “long term liabilities” (below).

• Long-term liabilities are total debt less current liabilities (above) and include those obligations that are not expected to be paid within one year. Mortgages and capital leases are common long-term liabilities.

Equity increases or decreases as a result of income or loss from operations of the business (the results of the current year income statement). It also increases when owners contribute capital to the business and decreases when the capital is withdrawn from the business.

• Common Stock and Preferred Stock represent the ownership interests in a corporation. Limited liability companies (LLCs) have members’ equity, which is shown instead of stock on the balance sheet.

• Retained Earnings are the portions of all the company’s past earnings that were not distributed to the owners. If the retained earnings are negative, they’re called “accumulated deficit”.

• Total Liabilities and Stockholders’ Equity (Deficit) is always equal to total assets.

The other primary financial statements present a summary or activities over a period of time, usually a fiscal year.

The Income Statement

This is sometimes referred to as the Statement of Operations or the Profit and Loss Statement and presents a summary of activities over a period of time, usually a fiscal year. This example below represents revenues less associated expenses and the resulting net income.

Revenue (or sales) (ex. fees earned from services provided to patients or sales of products to patients)

- Cost of revenue (cost of producing goods for sale) (ex. staff salaries and cost of products actually sold to patients)

= Gross profit (measure of the profit from sales of products or services)

- Administrative expenses (general costs associated with the operation of a business) (ex. rent, office staff salaries, utilities)

= Income from operations

+/- Other income and expense (not directly related to the primary operations of the business) (ex. interest income)

- Business income taxes

= Net income (loss) (measure of the earnings performance of the company after considering all elements of income and expense)

Another term to be familiar with is EBITDA (earnings before the deduction of interest expenses, taxes, depreciation and amortization) is an approximate measure of a company's operating cash flow based on data from the company's income statement. This measure is also of interest to a company's creditors, especially bankers, since EBITDA is essentially the income that a company has free for interest payments.

The Statement of Cash Flows

This provides information about the sources and uses of cash for the period, as analyzed onto three major classifications:

	Cash provided by or used in operations
+/-	Cash provided by or used in investing activities
+/-	Cash provided by or used in financing activities
=	Net increase or decrease in cash

• Operating activities include selling products and providing services. Cash inflows include all receipts from the sale of products or services and from interest and dividend income. Cash outflows for operating activities include cash payments for the purchase of inventory, wages and benefits to employees, etc.

• Investing activities include purchasing and selling property and equipment (ex. computers and exam equipment), buying and selling stocks or bonds, and lending money and collecting on those loans (ex. usually loans to business owners).

• Financing Activities include borrowing and repaying money to owners and lenders as well as money paid to owners out of equity (profits).
  

Standards and Regulations

Generally Accepted Accounting Principles (GAAP) is a set of guidelines that provides the basis for the preparation of most financial statements. In situations where GAAP-basis statements aren’t necessary because the bank or licensing board may require something different, an OCBOA (Other Comprehensive Basis of Accounting) may be used. Common examples of OCBOA statements include income-tax-basis, cash and modified-cash-basis. Generally, OCBOA financials are less expensive than GAAP basis ones a CPA would prepare for you.

Sharon Dunn, CPA, is a financial services and audit professional. She has 25 years’ experience in public and industry accounting. She may be reached at sharondunnwright@yahoo.com.