Think you know your books?

Every bank and credit-card account is reconciled each month.

Include operating, payroll, savings and business credit cards.

Reconciled balances agree with statements, with differences explained.

Compare the reconciliation report with each statement. Your live bank-feed balance may differ because of timing.

Your practice has a consistent month-end closing routine.

Reports are ready soon enough to support the decisions you need to make.

Revenue categories show the different areas of your practice.

For example: exams, surgery, dentistry, laboratory, pharmacy and retail, where your systems support that detail.

Product sales and service revenue can be reviewed separately.

Review revenue alongside the related product costs and service expenses.

Discounts, refunds, payment fees and deposits are reconciled.

Explain differences between practice-management sales, processor settlements and bank deposits.

Drug and product purchases use consistent, appropriate categories.

Review cost of goods sold, supplies and inventory treatment with your bookkeeper or accountant.

Inventory counts are compared with your inventory records.

Count drugs, vaccines and retail stock on an agreed schedule and investigate differences.

Expired stock, spoilage and other inventory losses are recorded.

Adjust inventory records and the books as appropriate for your accounting method.

Associate compensation is recorded and reconciled correctly.

Include base pay, production pay and other compensation that applies to your agreements.

Owner distributions and business payroll are distinguished correctly.

Treatment depends on your business structure. Review owner compensation with your accountant.

Wages, payroll taxes and benefits are recorded in the right accounts.

Check payroll reports and liabilities. Ask a qualified adviser about any worker-classification questions.

Account categories are consistent and meaningful for a veterinary practice.

The AAHA chart of accounts is a veterinary framework for organizing income and expenses. Use an appropriate structure for your practice.

Uncategorized and miscellaneous items are reviewed regularly.

Resolve unknown transactions and avoid using a catch-all category for recurring costs.

You can find last month’s revenue, expenses and net income in a current report.

You understand the main changes and know which questions still need an answer.