Finance

Three-quarters of people still paying off their student loans say the payments are large enough to keep them from buying a car or a house, says the Cambridge Consumer Credit Index.

Student loan rates are at historic lows, says Veterinary Economics Personal Finance Editor Fritz Wood, CPA, CFP, but not for long. Wood says recent and soon-to-be graduates should act now to consolidate their student loans.

Dr. Brad Rosonke, owner of Hillside Animal Hospital in Scottsdale, Ariz., has little interest in dentistry. But he knows that offering dental services means better care for his patients. His solution: Hire a dental resident--in his case, Dr. Peter Bates--to visit his practice on a regular basis. "This is a win-win-win situation," says Dr. Rosonke. "Dr. Bates needs to see more patients during his residency, I'm now free to see other patients while he's taking care of dental issues, and our clients get more complete care for their pets."

A growing business adds customers, expands inventory, buys equipment, and hires new staff. The future looks great on paper, but the additional expenses bring a cash crunch, particularly if collections are slow.

Think you know where your personal finances stand? If you're married, your spouse likely sees family earnings and expenses differently.

I'm about to sell my practice. Is there any reason why I can't do the appraisal myself?

In addition to arrhythmias, valvular insufficiency as detected by the auscultation of a murmur may result in signs of exercise intolerance.

I have lost count of the number of occasions when I have written in this column that partnership in a veterinary practice is very similar to marriage. The analogy is one that potential partners must ignore at their peril. Nonetheless, joint ownership of a professional practice can be much like something else as well: a couple moving in together.

A potential buyer will want to know what it would cost to provide the same services you offer.

Neel Veterinary Hospital in Oklahoma City, a paperless practice that purchased its first computer and electronic medical record system in 1993, prides itself on its commitment to using the latest technology. ?Adding computer radiography was a natural step in the evolution of our practice,? says co-owner Dr. Tina Neel.

My office manager suggested that we discount hard-to-collect, 90-day-past-due accounts as an incentive to encourage patients to pay at least something. We'd offer up to 25 percent off the bill, depending on how much the patient pays. We'd require the patient to adhere to a payment schedule until the debt's paid off. Is this a good solution or does it contribute to the problem?

Expect health insurance to cost about 10 percent more this year, marking five years of double-digit increases, according to The Washington Post.

They're here to stay. And the sites that target consumers are making heavy-duty media buys. Are you often doing enough to explain why clients should buy medications from you?

I'm the sole owner of a two-doctor practice. I have a great associate. She loves it here, I pay her well, and she knows she's appreciated.

Any practice that modifies, adapts or adds to the business premises will qualify for a write-off period.

Buying into a practice could bring great opportunities or heartache. The key: Know what you're getting into.

Not long ago in a Midwestern town, the owner of Wylie Animal Hospital, a two-doctor practice, called our office for help. The caller, Dr. Rudy Wylie (a composite character based on real practitioners), was an established practitioner whose companion animal practice had always been able to pay its bills, give staff members an annual raise, and maintain its client base.

The American Jobs Creation Act of 2004 created billions of dollars of tax breaks.

With the help of a patient-care coordinator, Veterinary Medical Clinic in Tampa, Fla., is seeing double-digit growth for the first time in years--and patients are enjoying even healthier lives, says practice owner Dr. Eddie Garcia. "The patient wins because it gets a better follow-up on what the doctor recommends and a better quality of life, and the client gets to enjoy the pet longer. The clinic wins because we're providing the service and making the income," he says.

Financial planning early in your career is perhaps the most important thing you can do to make sure you accomplish your personal and professional goals. In fact, the day you leave school would be a great time to start planning. But regardless of your age or career stage, it's never too late to gain value from a hard look at your financial situation and advice from a financial advisor who can help you identify and implement your financial plan. Here are the essential components of a financial plan:

We're having trouble monitoring the counts of specified items, calculating an accurate budget for inventory costs, and staying within that budget. We've identified our A, B, and C inventory items. What more can we do to get inventory under control?

The Internal Revenue Service (IRS) cares about accurate classification of employees and independent contractors, but so does your state unemployment tax department. No one ever thinks he or she will get audited, and many practitioners are surprised to learn that state unemployment departments often audit more frequently than the IRS.

Small business owners are particularly vulnerable to the risks of a prolonged illness or disability, because they're often the business's main asset. In other words, the business's success often depends on the owner's ability to earn income. As a business owner, you need to protect both your personal and business income. And the right insurance provides that protection.

After Veterinary Economics published "Caught in the Middle: Business vs. Compassion" in June 2004, we received several letters fueling the discussion. One in particular, from Dr. Lowell Novy of Valley Veterinary Clinic in Simi Valley, Calif., provided an interesting solution: Start a nonprofit organization to help cover costs.

Cleveland-Though many veterinarians fret about student loans prohibiting them from buying a practice, the real killer is revolving credit, such as credit cards and car loans.

In the past year, I've learned that a little laziness and a lot of assuming can cost big bucks. First it was our radiology badges-I assumed we all paid about the same price for this service. But when an astute colleague asked about the going rate in our area, I learned I was paying four times more than some of my colleagues!

Is it reasonable to charge a holiday surcharge for boarding pets? Hotels charge more during holidays. I want to be fair to my clients, but I also want my clients to be fair to us!

What do I do with a relief veterinarian who doesn't stick to my fee schedule?