Skip Navigation

Understanding Financials

Tools to address educational of needs of younger or new to practice ophthalmologists.

On this page:

YO Info™ Practice Management Archive

Visit the Young Ophthalmologist Web Site for Academy resources for YOs including Practice Management Archive.

Visit the YO Info™ page to read the latest issue of the Young Ophthalmologist's Newsletter.

Highlights from AAOE's 2013 Annual Meeting Program in New Orleans - Courses for YO's

10 selected courses include audio and sequenced slides.

2013 Highlights are a member benefit for AAOE and Academy members.

Courses for Young Ophthalmologists

  • Recognizing and Preventing Embezzlement
  • Using Benchmarks and Budgets to Guide your Financial Decisions
  • Investing in New Services: Making Sound Business Decisions
  • HIPAA Privacy and Security: Trends, Developments, and Issues
  • Optical Dispensing: Is It Financially Feasible for Your Practice?
  • Seeking Shelter Under the Hospital Umbrella: From Employment Agreements to Professional Services Agreements
  • The First Few Years of Practice: Some Key Concepts for Young Ophthalmologists
  • Ophthalmology for Non-Clinical Personnel
  • Top 10 Success Tips for your EHR Implementation
  • Training the Front Office Staff.

Understanding Financial Statements

The Basics

This series of financial articles are designed to introduce young ophthalmologists to the basics of the financial statements commonly prepared in connection with the operation of ophthalmology practices.

Understanding Financial Statements for the Ophthalmologist:

Cash Accounting Versus Accrual Accounting

Financial statements are normally prepared in accordance with what are called generally accepted accounting principles. Although, this term sounds a bit fuzzy, it actually has a very specific meaning: It requires the use of the accrual method of accounting. Under the accrual method, revenue is considered earned and is recognized in statements for the period when the revenue transaction occurred, regardless of when the related cash is collected. So, for example, under the accrual method, a practice’s earnings are posted at the time services are provided. Similarly, expenses are incurred at the moment the liability is incurred, regardless of payment terms. For example, on any given day, a practice’s expenses include the hourly wages earned by staff members that day, even though the payroll funds may be paid out only twice a month, which might be a week or more away. Continue reading.

Ophthalmic Practice Financial Policy

A successful financial policy clearly communicates procedures and responsibilities, provides a verifiable source of data, and automates the internal workflow to the fullest potential in order to increase cash flow and minimize loss. The key to this process is flexibility, as the medical world changes, the practice responds and changes and moves forward.

Continue reading.

The Profitable Practice Collection

Developed by AAOE, The Profitable Practice Collection makes mastering key financial management concepts easier. With this seven-module collection, you will learn how to boost your bottom line; convert clinical services to practice income and use data to drive results.  

Profitable Practice KitTitles in the series:

Visit the Academy Store Academy Store for a full list of products, detailed descriptions and ordering instructions.