Healthcare setups run on a smaller scale need regular surveillance so that the profit or loss of the setup stays in sight. Keeping a log of the profit and loss greatly helps in the improvement of the healthcare setup. It also helps in the expansion of the clinic and improves the clinic’s status in a holistic way.
Healthcare organizations mostly run on a larger budget even if the setup is on a small scale. An annual summary of the expenses and the subsequent profits or losses gives an idea of the overall financial performance of healthcare organizations. This is particularly applicable, rather necessary for the healthcare systems which we term for-profit healthcare organizations.
What is a profit and loss sheet?
Before jumping on to describing the template of the profit and loss sheet, we must know what is this profit and loss sheet in real.
So, a profit and loss sheet is basically a statement that serves as the summary of all the revenues for a specific duration of time in an organization. Speaking of the healthcare profit and loss statement serves as the summary of all the costs, purchases, and profits incurred in a year, in a month, or any specified period of time. We can compare or relate to an income statement or a bank statement if we want to get a better idea of the healthcare profit and loss sheet.
These sheets are used and saved as records, which are a source of information about the overall expenditures against the available budget. This is also used as a means to know the ability of a company to generate profits. We can foresee the current ability of the company and plan for further improvement of ways by which the revenue can be improved.
Healthcare profit and loss sheet template
- Since we have come to know the definition of the profit and loss sheet template, we will further discuss the details that are mentioned in the sheet. A standard template will tell us what to expect from a healthcare profit and loss sheet template.
- A complex number of rows and columns begin with the duration, time, or month in which we need to do the revenue. What we mean by saying this is that the statement is organized in different columns and separated for each month.
- We begin with the income of the healthcare organization. The total income of the organization is mentioned. We mention the sales turnover for each month, net sales, and other sources of income in the first-ever column of the sheet.
- Next, we look into the expenditures for each month. Expenses on manufacturing, material consumed, equipment purchased, and other administrative expenses are all mentioned for each month.
- Total expenditure and total incomes are summarized in the end. If any debt or any balance is remaining, that is mentioned at the end of the report.
- This report is usually signed by the concerned authorities to make it an official document.