How to Use a Profit & Loss Statement to Run a Healthy Private Practice, with Randall Avery| IP 184

Okay - I’ll admit it. My bookkeeper used to send me a Profit and Loss (P&L) statement for my practice every time we met - and I barely looked at it.

Not proud of that.

But I blew it off because I didn’t really understand HOW to use it, what the various segments meant, or how to pull information from those long columns of numbers that I could actually use.

Well - not any more. Today, I go over those suckers with a highlighter and a pen, and I keep the latest one on my desk so I can refer back to it when I make decisions.

That’s what a P&L can do for you. And today, we are going to teach you how to do the same thing.:)

In this episode, I’m joined by Randall Avery — a former corporate finance professional who now helps mental health professionals and other practice owners understand their numbers. With his help, we broke this stuff down in a way that actually makes sense.

No jargon. No shame. No such thing as a dumb question.

Just clarity - and I think you’ll love that.

In this episode, you’ll learn:

What a P&L actually is (and what it isn’t.)
How to break down revenue sources in your practice. (So helpful when deciding where to focus your growth! 🎯)
The difference between cost of care and operating expenses. (Totally new to me, y’all.)
Why tracking trends over time matters more than one “bad” month.
How keeping a healthy stash of reserves changes everything.

We also talked about the emotional side of money — the avoidance, the shame, the “I should know this by now” energy that keeps smart, capable clinicians (like you and me!) stuck.

Yeah. You know what I’m talking about - don’t you?

I know. I see you.

But learn this skill and you can shift from guessing…to knowing.

From bracing for impact… to planning for expansion. 💗

I also asked Randall to create a simple P&L tool for you, so you’d have something to check with if you want a visual reference to follow along. You’ll find a link to that down below. (Thank you, Randall!)

I’m always thinking of you guys and how to help. I hope today is one of those times. :)

~Wendy

P.S. And y’all, if this episode stirs something up —and you’re wondering what else you may be missing in your practice — start with the IP360 Scorecard. It will help you see where your practice is strong, where it’s leaking, and what needs attention next. Grab it here.

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TODAY’S GUEST: Randall Avery

Randall Avery is a former corporate Financial Planning & Analysis (FP&A) professional who now helps mental health professionals, attorneys and other service-based practice owners understand and optimize their financial performance. He brings clarity, structure, and strategy to small practice financial management — helping owners move beyond guesswork into confident decision-making.

And at my request, he’s created a sample P&L to help you with today’s teaching. Get your copy right here ➜ DeasilwmPractice Owners - Income Statement

His book: Hacking The System by Creating Your Own System: A practical guide to making your money count while building wealth.

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