Everyone Says 'Just Look at Your Numbers' But Which Numbers Actually Matter?
"You need to look at your numbers." "The numbers don't lie." "What do your numbers tell you?"
Great advice, right? Except nobody tells you WHICH numbers to look at. So you're staring at your bank balance, your monthly collections, and maybe your patient count, wondering why you still feel completely lost about your financial situation.
You've got numbers coming out your ears, but you have no clue what they actually mean or what to do with them. Your patient management system spits out reports. Your accountant sends you statements. Your bank account shows deposits and withdrawals. But none of it connects to help you make actual decisions.
Meanwhile, you're drowning in data but starving for insight.
My Spreadsheet Spiral
I used to think more numbers meant better understanding. I had spreadsheets tracking everything—how many new patients, return visits, no-shows, revenue by service type, expenses by category. I was tracking my tracking.
But when my second office started failing, all those numbers didn't help me see the real problem. I was looking at patient counts going up and thinking we were growing. I was looking at monthly revenue and thinking we were doing okay.
What I wasn't looking at was the cost per patient, the profit per visit, or the trend lines that would have shown me we were bleeding money three months before it became a crisis.
I had data everywhere but no clarity anywhere. I was looking at the wrong numbers and missing the ones that actually mattered for making decisions.
The Only 5 Numbers That Actually Matter
Forget the fancy reports and complicated metrics. Here are the only numbers you need to track to run a profitable practice:
1. Cost Per Patient Visit This is your total monthly overhead divided by total patient visits. If your overhead is $8,000 and you see 200 patients, your cost per visit is $40. This tells you the minimum you need to charge to break even.
2. Average Revenue Per Patient Visit Your total monthly collections divided by patient visits. If you collected $12,000 from 200 visits, that's $60 per visit. Compare this to your cost per visit to see if you're profitable.
3. Monthly Profit Margin Subtract your total costs from total revenue, then divide by total revenue. ($12,000 - $8,000) ÷ $12,000 = 33% profit margin. This tells you if your business is sustainable.
4. 3-Month Expense Trend Are your costs going up, down, or staying steady? If overhead was $7,500 three months ago and it's $8,500 now, you need to understand why and whether that increase is generating proportional revenue.
5. Cash Flow Projection (30 days out) Based on your scheduled appointments and typical collections, how much money will you have coming in? Compare that to your fixed expenses to see if you'll have cash flow problems.
That's it. Five numbers. Not fifty.
Why These Numbers Change Everything
When you track these five metrics, you can actually make decisions. Cost per visit too high? Look at cutting expenses or raising prices. Revenue per visit declining? Maybe you need better treatment plans or different services. Profit margin shrinking? Time to audit where your money is going.
But here's the key: look at trends, not just snapshots. One bad month doesn't mean your business is failing. But three months of declining profit margins? That's a pattern that needs your attention.
I wish someone had told me to ignore all the noise and focus on these five numbers. It would have saved me months of financial chaos and helped me spot problems before they became crises.
How I Help Practitioners Cut Through the Number Noise
I work with chiropractors, massage therapists, and acupuncturists who are tired of drowning in data without getting clear direction. We don't create more reports—we identify the specific metrics that drive profitable decisions in your practice.
In my 90-Day Profit Clarity Program, we set up simple tracking systems for the five numbers that actually matter. We organize your financial data so you can see trends that impact profitability, audit which numbers you're currently tracking (and which ones you should ignore), and create monthly review processes that take 15 minutes but give you complete clarity.
I check in throughout the 90 days to make sure you're focusing on metrics that help you make money, not just metrics that make you feel busy.
Ready to stop drowning in meaningless data? Download my free budget spreadsheet [Budget] that tracks the numbers that actually matter, or book a call [Work Together] to discuss building real financial clarity in the 90-Day Program.
Because you don't need more numbers. You need the RIGHT numbers.