Author Topic: start up cost/monthly expenses  (Read 2334 times)

MBP

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start up cost/monthly expenses
« on: April 13, 2010, 08:52:48 AM »
Hey guys, i have tried to see if there is already a thread about this and tried to do some research.. Linda, i came across your check list on your website too.. i am trying to budget everything and figure out my expenses and according to that see how much do i need to charge to be profitable.. so i will have a business license, registration, account set up, attorney fee for contract, fax, printer, ... as my start up cost. i use office ally, it is free. then i need to consider monthly E&O insurance, administrative expenses (envelopes, stamps, cms1500,....), marketing expenses.. quarterly taxes.. what else? trying to up these expenses for my budgeting to rather be wrong and save than to be left without any money. is there a percentage or a range for costs and expenses that you guys can give me so i am prepared? seems like revenue can be nice in this business but expenses may be high..  ???

PMRNC

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Re: start up cost/monthly expenses
« Reply #1 on: April 13, 2010, 11:55:36 AM »
First of all the rule of thumb is that when you own your own business there are certain things considered to be the COST OF DOING BUSINESS and you should NOT filter those costs to your clients. Costs such as attorney, training, coding books, insurance, etc do NOT get charged to any one client, they are the costs of doing business. Costs PER client would consist of postage, paper, ink, envelopes, clearinghouse, fax, phone and of course time. 
Linda Walker
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MBP

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Re: start up cost/monthly expenses
« Reply #2 on: April 13, 2010, 12:15:44 PM »
oh i must have put it in a wrong way, i didnt mean it that i would charge a client with my expenses. i meant, i need to know how much my costs and expenses are going to be so when the client pays (flat fee determined by what you guys always repeat, an entry level biller though - not asking for anything crazy!) i would know how much is there left and if i would -hopefully- break even. i wouldnt charge the client with my costs of course. i have been saving up money for my start up costs, i just want to figure out what my monthly expenses will be.

Pay_My_Claims

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Re: start up cost/monthly expenses
« Reply #3 on: April 13, 2010, 01:07:40 PM »
I didn't have that big of a start up money for my biz, so things went on a schedule. I put what was necessary to start my biz first then optional went last. Everyone's expenses vary depending on how they operate their business. My paper budget may not be as high as others, since i use a fax to my pc  service. I am getting  a netbook so that I won't have to toggle between screens or print out paper for my invoices. I also use other providers software so thats a savings to me. I use Office Ally as well, but their PM system Practice Mate is a program you don't want to use once you get busy. It is very time consuming software. You really get what you pay for.

MBP

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Re: start up cost/monthly expenses
« Reply #4 on: April 13, 2010, 01:47:52 PM »
Thanks Charlene. good info with the fax and netbook, i will look into it too. i have a magic jack at home, so at least my phone cost will be cheap. i also got google voice, which lets me use my cell phone, but gives me a new phone number. that way it is like having a business and a personal phone - in one. and its free too, how great. charlene, besides these obvious costs (paper, phone, ...), E&O ins, is there anything big i am forgetting? i am doing a research on taxes now. trying to figure out a % range i will have to put aside. i agree with you on office ally. it is my first and only software i have ever used, but i've started feeling it, when my brain and fingers are quicker than all the steps i need to take to get from point A to point B with OA.. they've served me well, but i need to start looking at something better.

Pay_My_Claims

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Re: start up cost/monthly expenses
« Reply #5 on: April 13, 2010, 02:22:53 PM »
Thanks Charlene. good info with the fax and netbook, i will look into it too. i have a magic jack at home, so at least my phone cost will be cheap. i also got google voice, which lets me use my cell phone, but gives me a new phone number. that way it is like having a business and a personal phone - in one. and its free too, how great. charlene, besides these obvious costs (paper, phone, ...), E&O ins, is there anything big i am forgetting? i am doing a research on taxes now. trying to figure out a % range i will have to put aside. i agree with you on office ally. it is my first and only software i have ever used, but i've started feeling it, when my brain and fingers are quicker than all the steps i need to take to get from point A to point B with OA.. they've served me well, but i need to start looking at something better.

I PERSONALLY, am avoiding the software issue. I market to NC Mental health providers who bill most (95%) NC Medicaid so I use NC webclaims. I also market to use their software system keeping everything in house. I have no need to pay a software company XXX for every provider i sign up. To me its just a marketing tool. I use office Ally for AR-Recovery services!!

MBP

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Re: start up cost/monthly expenses
« Reply #6 on: April 13, 2010, 02:28:43 PM »
good point.. i am doing an AR recovery for this mental health provider using OA, but i tell you, i wonder if i am doing it the easiest way that's out there.. when you do that, do you enter all the visits, all the payments and just print the aging report and visit report? that's what i did for the first month i did for this dr, but it took me a while. and OA practice mate doesnt have enough room and places for notes.. so if i come across a claim that was rejected 4 times, i have nowhere to write notes about it.. i started putting my notes in with the "add new pmt" so it shows up when i print her pmts/deposit report and i have it all together. is this the most efficient way of doing it or are you doing it differently?

Michele

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Re: start up cost/monthly expenses
« Reply #7 on: April 13, 2010, 03:11:58 PM »
I haven't used OA so I really don't know if that is the best way.

Michele
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Pay_My_Claims

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Re: start up cost/monthly expenses
« Reply #8 on: April 13, 2010, 03:45:09 PM »
what notes are you putting in??

MBP

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Re: start up cost/monthly expenses
« Reply #9 on: April 13, 2010, 03:58:36 PM »
e.g. remark codes, notes of a previous biller (if she resubmitted, if she talked to anyone..) and so on.. this one is a real mess, some claims have been resubmitted over and over and there is just too many denials.. i am just giving the provider the analysis, b/c only her current biller can electronically bill. and i need to let her know why the balances are the way they are, if claims have been submitted, which modifiers were used.. b/c with this one, her previous biller was playing a russian rullette!! submit this code, if denied, let's change to another one, if denied, lets add a modifier.. just trying milion ways to get smtg paid.