1
Total Collections (MTD)
Cash received this month (not billed — collected)
Target: Consistent or growing month-over-month
This is your real revenue. If collections are flat while volume is up, you have a billing or payer problem.
2
Payroll % of Revenue
Total payroll ÷ Total collections × 100
Target: 25–35% for most practices
The single biggest expense line for most practices. If this creeps above 35%, investigate before it becomes structural.
3
Overhead Ratio
Total operating expenses ÷ Total collections × 100
Target: 55–65% (specialty dependent)
Tells you how much of every dollar collected goes to running the practice. The remainder is your profit margin.
4
Owner Compensation
Salary + distributions + retirement contributions
Target: Know your total comp as a % of revenue
Most owners know their salary but not their total compensation picture. This number matters for tax planning and benchmarking.
5
Cash on Hand
Operating account balance (end of month)
Target: 2–3 months of operating expenses
Your runway. If a payer delays reimbursement or you lose a provider, can you cover payroll and rent?
6
Accounts Receivable Aging
Outstanding claims by 30/60/90/120+ day buckets
Target: <15% over 90 days
Old AR is money at risk. If 90+ day balances are growing, your billing process needs attention now, not next quarter.
7
Patient Visit Volume
Total patient encounters this month
Target: Stable or aligned with growth plan
Volume drives revenue. A drop here shows up in collections 30–60 days later. Catch it early.
8
Revenue Per Visit
Total collections ÷ Total visits
Target: Specialty-dependent benchmark
If volume is steady but revenue is dropping, this tells you why. Could be payer mix, coding, or service mix shifts.
9
Operating Margin
(Collections − Operating expenses) ÷ Collections × 100
Target: 35–45% for owner-operators
Your bottom line before owner comp. This is what you have to work with for salary, distributions, taxes, and reinvestment.
10
Tax Reserve Balance
Dedicated savings for estimated tax payments
Target: 25–35% of net profit set aside quarterly
The number that prevents April surprises. If this account is thin, you're borrowing from future obligations.
How to Use This Checklist
Step 1: Pick 2–3 of these KPIs to start. Don't try to track all 10 at once.
Step 2: Send this to your bookkeeper and ask for last month's numbers. If they can't produce them within 48 hours, that's a signal.
Step 3: Compare month over month. One month is a snapshot. Two months is a trend. Three months is a pattern you can act on.