*Blackwell Part 3 Flashcards
define ATC
average transaction charge = net revenue in timeframe / # transactions in same timeframe
define operating budget
budget that encompasses a 12-month period of operations
define: chart of accounts
listing of all categories used to group payments in a practice’s accounting system
define: common cost
an expense that cannot be traced to individual activity (i.e. tech pay cannot be traced to any individual patients)
Bottom Line =
revenue - COGs - operating expenses - labor - taxes
When it comes to paying veterinary bills, what are the two most common risk management strategies?
Insurance and wellness plans
Define cryptocurrency
lines of computer code that hold monetary value
what are the four reasons cryptocurrency is so popular?
- not regulated by the government
- bypass banks
- gives the power to the people
- transactions are irreversible
define cash payback
the amount of time it takes to recover the cost of an investment
define incremental cash flow (ICF)
change in practice’s net cash flow due to the purchase of an investment
define initial investment outlay
the ICF at the start of an equipment’s life, which includes purchase price, shipping, and install
term for: the proposed capital investment using the present value concepts to compute the rate of return from the NCFs expected from the investment
internal rate of return (IRR)
how to calculate ARR:
average investment = cost of asset / 2
ARR = est. ave. annual income / ave investment x 100
example: ultrasound machine
$30,000 cost / 2 = $15,000 average investment
$10,000 est. ave. annual income / $15,000 x 100 = 66%
term for: value of an investment calculated by comparing the initial cash outlay with the present value of the future NCFs by using a management-determined interest rate of return
Net Present Value (NPV)
define: accounts payable aging schedule
list of debts to suppliers over certain periods of time
term for: summary of practice income, expenses, and resulting profit or loss
Profit and Loss Statement
when creating a budget, what are the four categories of outflow?
COGs, operating expense, major purchases, debt payments
formula for: average collection period
current AR balance / annual sales / 360
formula for: AR to sales ratio
current AR balance/monthly sales
term for: the national automated payment clearing system in the U.S.
automated clearing house (ACH)
define: embezzelment
to take property or money entrusted to your care
what are the three factors that make up the “fraud triangle”?
situational pressure, opportunity, personal integrity
term for: evidence-based practices in which professional intervention can be defined, optimized, and sequenced, and in which the outcomes can be measured
care pathway
what is EVA and what is the formula for it?
economic value added - value of something at the end of a time period minus the value at the beginning of that time period
= net operating profit after taxes - (capital x cost of capital)
term for: method of continuously examining processes and making changes to them to make them more efficient and effective
continuous quality improvement
what is the FOCUS-PDSA acronym?
find a process to improve
organize a team
clarify the problem
understand
select improvements
plan
do
study
act
term for: the regulation that lists the categories of hazardous waste
EPA Regulation 40 CFR 261
how much square footage should a building be per dvm?
1500-3000
building sqft divided by ____ sqft = required number of parking spaces
250
once you know how many parking spaces a new build location needs, multiply that by ___sqft to find parking lot size
400
define bridging documents
architectural drawings that are more developed than schematic drawings, but less developed than permit and construction drawings
