Practice management, as an application, appears differently to different viewers. To some, practice management is all about revenue management. To others, it’s about time management, and to yet others, it’s about project management.Practice management encompasses all of these areas and more. At its most basic definition, practice management is about resource management. Every firm is constrained by the resources that it has available, including staff hours and availability, and economic factors. A good practice management system allows a firm to maximize the use of these resources through awareness of how staff time is employed, making sure that the right resources are applied to the right tasks, and that revenue is generated in a profitable manner and collected in an appropriate time.
Many accounting practices are afraid of practice management, and restrict themselves to time and billing, relying heavily of the “billing” component of the application. That’s entirely understandable: Revenue generation and collection is a vital function of any enterprise, even nonprofits. Without the ability to pay your staff and meet overhead, you won’t have a practice.
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