How to Set a Budget for Your Medical Office (Without Guesswork)
- Jovin Richard
- Jun 30
- 2 min read
At ACCORDPRO, we help healthcare and non-healthcare businesses build practical, data-driven budgets that support stability and growth. Here’s how to set a budget for your medical office with confidence and clarity.

Practical Steps to Build a Financial Roadmap That Works
Creating a budget for your medical office doesn’t have to be overwhelming—or based on guesswork. Yet many clinics operate without a clear financial plan, leading to overspending, underfunding, and unexpected cash flow problems.
1. Start With Historical Data
Before planning forward, look backward. Review at least 12 months of financials, including revenue, expenses, payroll, and overhead.
What to Do:
Pull income statements and cash flow reports
Identify seasonal trends in patient volume or revenue
Note any one-time expenses that shouldn’t be repeated
ACCORDPRO clients receive monthly bookkeeping reports, making this step faster and more accurate.
2. Categorize Fixed and Variable Costs
Break down your expenses into two buckets:
Fixed costs (rent, salaries, software subscriptions) stay the same each month.
Variable costs (medical supplies, marketing, overtime pay) fluctuate with volume.
What to Do:
Estimate average monthly spend for each category
Flag categories where costs could be trimmed or negotiated
Set clear limits for variable expense categories to control spending
3. Estimate Monthly Revenue Realistically
Don’t just use charges—focus on collected revenue. Include payer mix, denial rates, and patient collections when forecasting.
What to Do:
Base projections on prior collection trends
Account for delays in reimbursement from Medicare/Medicaid
Factor in seasonal slowdowns and provider time off
4. Build a Monthly Budget Template
Create a simple template that includes:
Expected revenue
Fixed costs
Variable costs
Projected net income
What to Do: Use Excel, QuickBooks, or your accounting software. ACCORDPRO provides customized budget templates for medical and dental offices.
5. Include a Contingency Fund
Unexpected costs—like equipment repairs or staff turnover—can hit your budget hard if you’re unprepared.
What to Do: Set aside 3–5% of your monthly revenue as a buffer. If unused, it rolls into savings or investment for future upgrades.
6. Review and Adjust Quarterly
Your budget isn’t static—it should evolve with your practice. Set quarterly review sessions to compare projections with actuals.
What to Do:
Track where you over- or under-spent
Identify services or departments driving revenue
Make data-driven adjustments for the next quarter
ACCORDPRO helps practices stay on track with quarterly financial reviews and real-time reports.
7. Align Budgeting With Practice Goals
A budget isn’t just about managing expenses—it’s a roadmap to growth. Use it to plan for hiring, adding services, upgrading tech, or opening new locations.
What to Do: Tie each line item to a business objective. For example, increased marketing spend should link to a goal for new patient volume.
Final Thoughts
Setting a budget doesn’t require a finance degree—but it does require structure, data, and a clear plan. With the right setup, your medical office can run smoother, grow smarter, and stay profitable—even through uncertainty.
ACCORDPRO offers full-service bookkeeping and budgeting support tailored to medical practices, so you can focus on patient care while we keep your numbers on track.
Need help building your office budget?
📞 Contact us at 425-215-0517 or visit www.accordpros.com to schedule a free financial strategy call.
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