Budgeting and Forecasting
Delegates details
Trainee name and Surname
Trainee ID number
Name of firm
E mail address
Telephone number
Trainee Cell phone number
Training officer name and Surname
Training officer e-mail address
,Additional information - please complete
Indicate when your training contract is ending (dd/mm/yy)
Please indicate which competency skills you need sign off on:
(mark with an X)
SAICA: Residual skills X
SAIPA: Logbook training
, Case study (Assumptions)
Tooth Crew (Pty) Ltd.
Tooth Crew (Pty) Ltd
Backgound
This practice, located in a middle- to low-socioeconomic area in Johannesburg, South Africa and sees a high num
After 20 years in practice, the doctor acknowledges that he is getting further behind each year. You were asked
year's budget.
Like the legendary "dog being wagged by its tail," this practice is at the financial mercy of a demanding and sel
matters worse, production has leveled off in the last four-five years. And the final kick in the teeth ... accounts
year than ever before.
The doctor is a very nice person-too nice, in fact. Trying to please and wanting to be liked, he literally bends ove
confrontation ... even when such contortions hurt him or his practice. Here`s what that means to his staff (two h
assistants and two business assistants):
Because they`ve all been with the practice for a long time, they get a lot of time off. To be exact, they`re paid ye
weeks` vacation, along with three sick days. Further, when the doctor is off, they`re off, and paid. Although sta
are eating up 27 percent of income, staff members are constantly whining about getting out late for lunch or at
they`re seeing patients about 30 hours a week.)
Through observations the following information came about:
- Emergency-patient numbers out proportion active patients.
- Delinquent-account phone calls have not been made in over a year. The individual accountable for these cal
is highly compassionate.
- Fees in this practice are only being increased every 2 1/2 years.
This practice reminds us of a sinking lifeboat. While the crew is working on suntans and not keeping up with the
captain`s allowing more passengers aboard for a free ride. If major changes aren`t made soon, everyone will be
Required
You were asked to assist the doctor in preparing next years' budget.
Make use of the Assumptions Pathway in your presentation slides notes and draft your budget assumptions.
You have to list and document each step during this very crucial step.
Note: you are not required to draft the budget - you ONLY need to draft the assumptions.
Your Attempt
, NB: Create your own working paper and format below
TOOTH CREW (PTY) LTD
Step 1: Determine the Budget Approach
The most appropriate budget approach for Tooth Crew (Pty) Ltd would be zero based budgeting, since it does n
budgets in the previous years, otherwise the doctor would have been aware at an earlier stage that he is getting
the practice to build their annual budget from zero each year to verify all components of the annual budgets ar
current year's budget will thus be prepared from scratch, without considering the budget of the previous year, i
Step 2: Objectives and Strategies
Objective
1. Since emergency patients numbers out active 1.1 Incorporate scheduling patients' next appointment
patients, it would be effective to improve patient prioritise their oral hygiene over other commitments o
retention. to book a follow-up appointment. If the patients leave
email addresses afterwards which directs them to a bo
1.2 Follow up with timely reminders for appointments:
reminders should be sent out that help them plan for t
things that they need to bring, any special preperation
their procedure.
1.3 Ask for feedback to let patients know that you are l
show the practice's desire to constantly improve and d
patients for their opinion face-to-face, allowing them t
honest review.
1.4 Be quick at responding to patients: Return a patien
know how valuable they are to the dental practice. If th
alternatives, especially if it is a medical emergency.
2. Improve debt collection to cancel out high amounts
of accounts receivables.
2.1 Be transparent about treatment costs and plans: M
those patients who know about the expenses they are
insurance options for treatment plans, to outline differ
2.2 Ask for upfront payments: In addition to asking pati
inquire them to settle the invoice right after their proce
2.3 Deliver reminders to recover payments: Since phon
correspondence in the past, the sending of formal lette
effective. These letters should also highlight the legal re
client still does not budge, you can send the matter to
2.4 Offer a seamless payment process: Offering the con
service and getting patients in and out of the office qui
facilitated for the best patient experience - and to ensu
2.5 Offer payment options to ensure continued care: In
treatment, draw up a payment plan that charges small
viable without causing a dent in their household budge
3. Increase fees every year by a small percentage to 3.1 Adjust fees a little every year: it won't be wise to ju
avoid turning off a lot of patients. increase 10-20% over a 2-3 year period to mitigate neg
3.2 Offer third-party financing options: Give patients a
4. Master time management to improve productivity of
the dental team.
4.1 Assess the time required for daily tasks: Have a clea
identify the areas where time is wasted and also where
4.2 Plan and prioritise: It is inefficient for the entire sta
effectively so that when the doctor is not available, the
emergencies. The entire practice cannot come to a stan
Delegates details
Trainee name and Surname
Trainee ID number
Name of firm
E mail address
Telephone number
Trainee Cell phone number
Training officer name and Surname
Training officer e-mail address
,Additional information - please complete
Indicate when your training contract is ending (dd/mm/yy)
Please indicate which competency skills you need sign off on:
(mark with an X)
SAICA: Residual skills X
SAIPA: Logbook training
, Case study (Assumptions)
Tooth Crew (Pty) Ltd.
Tooth Crew (Pty) Ltd
Backgound
This practice, located in a middle- to low-socioeconomic area in Johannesburg, South Africa and sees a high num
After 20 years in practice, the doctor acknowledges that he is getting further behind each year. You were asked
year's budget.
Like the legendary "dog being wagged by its tail," this practice is at the financial mercy of a demanding and sel
matters worse, production has leveled off in the last four-five years. And the final kick in the teeth ... accounts
year than ever before.
The doctor is a very nice person-too nice, in fact. Trying to please and wanting to be liked, he literally bends ove
confrontation ... even when such contortions hurt him or his practice. Here`s what that means to his staff (two h
assistants and two business assistants):
Because they`ve all been with the practice for a long time, they get a lot of time off. To be exact, they`re paid ye
weeks` vacation, along with three sick days. Further, when the doctor is off, they`re off, and paid. Although sta
are eating up 27 percent of income, staff members are constantly whining about getting out late for lunch or at
they`re seeing patients about 30 hours a week.)
Through observations the following information came about:
- Emergency-patient numbers out proportion active patients.
- Delinquent-account phone calls have not been made in over a year. The individual accountable for these cal
is highly compassionate.
- Fees in this practice are only being increased every 2 1/2 years.
This practice reminds us of a sinking lifeboat. While the crew is working on suntans and not keeping up with the
captain`s allowing more passengers aboard for a free ride. If major changes aren`t made soon, everyone will be
Required
You were asked to assist the doctor in preparing next years' budget.
Make use of the Assumptions Pathway in your presentation slides notes and draft your budget assumptions.
You have to list and document each step during this very crucial step.
Note: you are not required to draft the budget - you ONLY need to draft the assumptions.
Your Attempt
, NB: Create your own working paper and format below
TOOTH CREW (PTY) LTD
Step 1: Determine the Budget Approach
The most appropriate budget approach for Tooth Crew (Pty) Ltd would be zero based budgeting, since it does n
budgets in the previous years, otherwise the doctor would have been aware at an earlier stage that he is getting
the practice to build their annual budget from zero each year to verify all components of the annual budgets ar
current year's budget will thus be prepared from scratch, without considering the budget of the previous year, i
Step 2: Objectives and Strategies
Objective
1. Since emergency patients numbers out active 1.1 Incorporate scheduling patients' next appointment
patients, it would be effective to improve patient prioritise their oral hygiene over other commitments o
retention. to book a follow-up appointment. If the patients leave
email addresses afterwards which directs them to a bo
1.2 Follow up with timely reminders for appointments:
reminders should be sent out that help them plan for t
things that they need to bring, any special preperation
their procedure.
1.3 Ask for feedback to let patients know that you are l
show the practice's desire to constantly improve and d
patients for their opinion face-to-face, allowing them t
honest review.
1.4 Be quick at responding to patients: Return a patien
know how valuable they are to the dental practice. If th
alternatives, especially if it is a medical emergency.
2. Improve debt collection to cancel out high amounts
of accounts receivables.
2.1 Be transparent about treatment costs and plans: M
those patients who know about the expenses they are
insurance options for treatment plans, to outline differ
2.2 Ask for upfront payments: In addition to asking pati
inquire them to settle the invoice right after their proce
2.3 Deliver reminders to recover payments: Since phon
correspondence in the past, the sending of formal lette
effective. These letters should also highlight the legal re
client still does not budge, you can send the matter to
2.4 Offer a seamless payment process: Offering the con
service and getting patients in and out of the office qui
facilitated for the best patient experience - and to ensu
2.5 Offer payment options to ensure continued care: In
treatment, draw up a payment plan that charges small
viable without causing a dent in their household budge
3. Increase fees every year by a small percentage to 3.1 Adjust fees a little every year: it won't be wise to ju
avoid turning off a lot of patients. increase 10-20% over a 2-3 year period to mitigate neg
3.2 Offer third-party financing options: Give patients a
4. Master time management to improve productivity of
the dental team.
4.1 Assess the time required for daily tasks: Have a clea
identify the areas where time is wasted and also where
4.2 Plan and prioritise: It is inefficient for the entire sta
effectively so that when the doctor is not available, the
emergencies. The entire practice cannot come to a stan
