There are “magic numbers” for every business, no matter what industry they’re in. For veterinary clinics, finding the right magic numbers is critical because they help to quickly diagnose the clinic’s overall business health. Owners that know their performance can easily identify opportunities to improve on, and celebrate where they’re finding the most success.

The three most common financial reports that show these used by veterinary practice owners and managers that show the ‘magic numbers’ are the profit and loss statement, balance sheet, and cash flow statement. Your profit and loss statement shows you how your business is performing overall during a given period of time. Your balance sheet shows you a snapshot of the overall value of the business at that moment. Finally, your cash flow statement displays your changes in assets and liability values over a period of time.

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