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Answer the following: (Use the Excel Sheet attached) What two changes to the budget process you followed would you make to improve the budget management
Answer the following: (Use the Excel Sheet attached)
- What two changes to the budget process you followed would you make to improve the budget management of the clinic?
- Provide two recommendations to the owners to try to improve the financial performance of the clinic.
| Pro Forma | Actual Results | |||||
| Year 2021 | End of 2021 | $ Variance | % Variance | |||
| Revenues | ||||||
| Private Insurance | $ 610,000 | $ 552,750 | $ (57,250) | -9.4% | ||
| Medicare | $ 240,000 | $ 257,040 | $ 17,040 | 7.1% | ||
| Medicaid | $ 30,000 | $ 58,950 | $ 28,950 | 96.5% | ||
| Self-pay | $ 62,500 | $ 32,520 | $ (29,980) | -48.0% | ||
| Total revenue | $ 942,500 | $ 901,260 | $ (41,240) | -4.4% | ||
| Expenses | ||||||
| Salaries and Benefits | $ 702,000 | $ 707,109 | $ (5,109) | -0.7% | ||
| Medical Supplies | $ 140,000 | $ 140,216 | $ (216) | -0.2% | ||
| Administrative Supplies | $ 8,000 | $ 7,526 | $ 474 | 5.9% | ||
| Rent and Utilities | $ 52,000 | $ 52,620 | $ (620) | -1.2% | ||
| Total expenses | $ 902,000 | $ 907,471 | $ (5,471) | -0.6% | ||
| Income/Loss | $ 40,500 | $ (6,211) | $ (35,769) |
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Foundations Of Business
Authors: William M. Pride, Robert J. Hughes, Jack R. Kapoor
7th Edition
0357717945, 978-0357717943
