June 15, 2017

 

 Groups making free accounting codes for pet practices

P​osted May 31, 2017

Veterinary organizations are developing a free standardized bookkeeping structure that practices could use to measure performance.

In April, the AVMA Board of Directors voted to endorse an American Animal Hospital Association and Veterinary Management Groups project to create a chart of accounts containing standardized accounting codes for companion animal practices, which could use the chart to classify and aggregate revenue, expenses, and balance sheet accounts. At press time, the chart was expected to be available free of charge starting in June on AAHA’s website.

AAHA has produced and sold previous editions of its own chart of accounts.

An AVMA@Work blog post published following the Board’s April meeting indicates practice owners want and need to compare their financial performance with industry standards, yet developing those standards requires standard methods of collecting practice data.

Katherine Wessels, AAHA senior manager for member experience and communications, said the standardized accounting codes used in the chart will let the profession develop better measures of veterinary practice finances and help practitioners organize their practice finances in line with accepted accounting principles. That alignment will help veterinarians analyze their practices’ performance using industry statistics, she said.