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Understanding Financials

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

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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.

Financial Management Resources at the Annual Meeting

AAOE Practice Management Area

Stop by the AAOE Practice Management area in the Academy Resource Center for updates on critical business issues including EHR, ICD-10 transition, PQRS, financial management, and more. Academy and AAOE members can also sign up at the booth for a free, 20 minute, one-on-one private consultation with a practice management expert — Practice Management Center, Academy Resource Center, Hall A - Booth, 3239.

AAOE Financial Management Courses

AAOE offers a number of targeted financial management courses. Some suggested courses are listed below. Consult your Pocket Guide or Final Program for a complete list of courses. Purchase the Academy Plus Course Pass or course tickets for select special events at the Ticketed Events and Tour Sales area, Hall C. The cost of the Course Pass is $100 for Academy Members in Training and a discount of 50% is offered on a select group of ticketed courses.

Review the Highlights for Young Ophthalmologist brochure [PDF 2MB] and the Academy's Meeting Essentials page to help you make the most of your time at the Annual Meeting in New Orleans.

  • Doctors and Administrators: Working Together to Make Sound Financial Decisions — Course 195
  • Financial Analysis and Reporting — Course 225
  • Ophthalmology Practice Buy-In and Pay-Out Arrangements — Course 236
  • Negotiating Your Buy-In — Course 516
  • Billing for Beginners — Course 529

Online Courses

2012 Annual Meeting Highlights - Courses for YO's

Highlights from AAOE's 2012 Annual Meeting Courses — View 5 select courses geared toward YO's (Current AAOE or Academy member login required).

  • Going Lean: Tools for Efficiency and Effectiveness in the Ophthalmology Practice
  • A Physician's Guide to Avoiding Embezzlement
  • Website 101: Three Steps to Creating Your First Website
  • Starting Out on the Right Financial Foot: A Guide for Young Ophthalmologists
  • How to Join a Group Practice: Introductory Concepts

Understanding Financial Statements

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.

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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.

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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.