Variable Expenses in the Veterinary Practice

Camala Bailey, CPA, CVA, at Camala C. Bailey, CPA, PC, discusses variable expenses and what can be done to keep them under control in order to increase profits.

Interview Transcript (slightly modified for readability)

“An example of a variable expense is something that’s called ‘cost of professional services;’ that’s what variable expenses are. A variable expense or cost of professional service that is very important to keep track of is drugs. Drug costs should be monitored and what I suggest is [that] you have a very strong inventory system and you use your practice software to manage it. So, keeping accurate counts in your practice software is very important [and] using it to calculate your inventory turnover as well as your reorder points, is a great way to [manage] your drugs.”