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Veterinary Ventilators – Shipped to Hospitals – Combat COVID-19

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The nation’s hospitals, facing dire shortages of lifesaving ventilators as the coronavirus outbreak continues, are finding help from an unlikely source: animal doctors and veterinarians.

The country’s largest veterinary schools, animal hospitals and even zoos are offering up ventilators to hospitals that are scrambling to care for a growing number of critically ill coronavirus patients. Similar efforts elsewhere could produce hundreds of machines and save countless lives.

Ventilators used on animals are identical to machines at hospitals, according to several animal doctors and hospital officials. Dogs and cats with pneumonia and other respiratory issues, not unlike their human counter parts, benefit immensely from the breathing machines, which quickly can be repurposed.

 

Source: This article was provided by ABC News.  See pictures of how ventilators are used on dogs, orangutans, tortoise, and jaguars.

 

Coronavirus Loan Assistance – Veterinary Practices – Pet Hospitals

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The VET CPA Association, and it’s Veterinary CPA member firms, have launched a Small Business Loan Assistance service to support the following types of veterinary practices:

  • Veterinary Clinics
  • Pet Hospitals – Animal Hospitals
  • Mixed Animal Veterinary Practices
  • Specialty Veterinary Practices

This emergency loan assistance program is designed to provide veterinary practices with sound financial guidance in this emergency situation navigating federal, state and city specific programs, grants as well as veterinary industry specific options.

To learn more, visit the “request a veterinary cpa” page and complete the form.  We will then put your in touch with a CPA in your area.

COVID-19 Banking Terms Changing for Veterinarians – Pet Hospitals

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The terms for banking are rapidly changing and will continue to evolve.  Below are the new terms that have been established by lendor.  For more up to date information, contact us and we will put a VET CPA in touch with you pronto.

Due to the recent development of COVID-19, the terms for loans is rapidly changing:

Bank Terms
Affinity Bank 1 day turn around on Lines of Credit (if existing customer) and 3 months deferred payments.
Bank of America Interest only 90 days, must request
Bank of America 60 day deferral of payments + line of credit
Chase 60 day deferral of payments or interest only for 60 days + line of credit
Citicorp Currently working on a deferral program on a case by case basis
First Citizens No payments for 60 days (must request), business unsecured loans for up to 24 months with a low fixed interest rate
Lendeavor 60 days deferred payments
M&T 90 day payment deferral,interest accrues during the 3 months
PNC Interest only 90 days & possible 90 day total deferment
PNC 60 day deferment
Prosperity Bank 60 day deferral of payments + line of credit
South State Interest only 120 days
Wells Fargo 3 month deferment
Zion Bank Review each request, It could be a line of credit, interest only period, or a deferment of P&I for a period of time
SBA Express Loan Payment , limited to 10% of Fee Income , priced at prime 3.25% plus 1% to 3%

 

Starting Your Own Veterinary Practice

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If you have kicked around the idea of starting your own veterinary medicine practice and think you are ready, then this article is for you.

To avoid many of the pitfalls and risk associated with starting a new business, here are some things that you should be asking yourself and considering.

  • Self-Assessment
  • Choosing an Entry Strategy
  • Develop Business Plan
  • Start-Up Costs
  • Equipment, Supplies and Inventory
  • Staffing
  • Veterinary Marketing and Lead Generation

 

Self-Assessment

Before you hand in your resignation, here are some questions to ask yourself:

  • Do I have enough experience to do it myself?
  • Do I have the drive and motivation to succeed on my own?
  • Do I have support from my spouse and family?
  • Do I have the capital to get started and operate for at least one year?
  • Do I know how to market veterinary medicine services?

Owning a business can be very rewarding.  The process requires planning, hard work, perseverance, and investment.  If you can weather the start-up and early development phase, the transition can be wonderful.

Entry Strategy

Most veterinary practices start using the following entry strategies:

  • Starting from scratch – Starting from ground zero allows you to begin without any legacy issues like old pricing, old software, and past-client service issues.
  • Buying a practice – This entry approach sounds easier than the other options but has challenges as well.  In many markets, the demand for existing practices is red hot as corporate vet practices are using a roll up strategy to capture market share.  As a result, the value of existing vet practices is high.

Develop a Business Plan

Like any business initiative, you need to develop a written business plan.  A comprehensive business plan should include:

  • Goals for your practice
  • Target audience that you are serving
  • Location is key
  • Services that you will offer and which to refer out
  • How you will better service your target audience
  • Your experience and skills
  • Business structure (LLC, S-Corp, C-Corp, etc.)
  • Capital requirements and sources
  • How to market your new veterinary medicine services
  • Pricing strategy
  • Office, equipment, practice software and staffing requirements
  • Projected costs and revenues – start-up, monthly costs, and budgets

Financial Considerations

Before making this leap, it is important to honestly assess if you are prepared to make this transition financially and emotionally.  New businesses require sweat equity so this move has to be at the right time in your life.  Nearly all practices are cash flow negative during the start-up and development phase so you need to have cash on-hand to cover household expenses and retain insurance coverage.

Veterinary Practice Marketing and Lead Generation

This is the area that most practitioners need the most assistance because up until this point, they have not been trained on marketing, pricing and practice management.  In college and working as an apprentice for a veterinary practice, the emphasis is on performing the work, not marketing and lead generation.

In today’s world, hanging out your own shingle is not enough to build a business and the number of referrals will be inadequate to achieve your revenue goals.

Start-up Costs

The cost of starting a veterinary practice depends on your revenue goals, entry strategy, and geographic area.  Also, an office in a large city near an office park complex will cost more than an office in a bedroom community that is lightly populated.

There are commercial real estate firms that understand the veterinary practice needs and costs very well.  And it costs you nothing to get their insights and expertise.

There are also veterinary medicine lenders that understand this industry extremely well and can provide additional guidance.  Or said another way, you do not want to work with a local retail bank.  Your goal will be to secure lending with veterinary practice lenders who understand the industry backwards and forwards.

One of the key players on your team will need to be a veterinary medicine cpa firm, not a generalist cpa firm.  A veterinary practice CPA will save time and lower your risk on practice acquisition due diligence, business structure and entity selection, and accounting/tax.  Typically, they can recommend veterinary practice real estate firms, law firms, lenders, and other specialists that you will need in your new practice journey.  Working with specialists that understand the veterinary space will lower your risk and save time.

 

Veterinary CPA Association – The VET CPA Association is a network of independently owned CPA Firms who have started their own practice at one time.  All are single owner firms, not large partnerships.  Some started from scratch, some purchased an existing practice, and others have used a combination approach.  Regardless, all members of this association can better direct you to specialists who understand the veterinary industry very well and improve your odds of success.  Their goal is to help you over the next 20-30 years, not just get started.  If you would like to have a veterinary medicine cpa contact you, click here.  The initial discussion is free.

VET CPA’s Participate in Best Selling Book

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Writeoffs to the Rescue is a book written by top CPA’s and tax professionals about proactive strategies to legally lower your tax obligations.  The book is available on Amazon and was released right after tax season in April 2019.

Below is more information on three VET CPA members who contributed to writing this book.

Peter Freuler – Florida CPA – Peter is a licensed CPA in Florida and holds a Bachelor’s degree from Columbia University and Master’s degree from University of Central Florida.  He is also a founding member of the VET CPA Association.  Click to learn more about his CPA practice focused on veterinary practices and animal hospitals.

Luke Gheen – Colorado CPA – Luke is a licensed CPA in Colorado and holds a Bachelor’s degree from University of Colorado.  He also has an MBA from University of Colorado.  He is also a founding member of the VET CPA Association.  Click to learn more about his CPA practice focused on veterinary practices and animal hospitals.

Mike Manoloff – Texas CPA – Mike is a licensed CPA in Texas and holds a Bachelor’s degree from Indiana University.  He is also a founding member of the VET CPA Association.  Click to learn more about his CPA practice focused on veterinary practices and animal hospitals.

Why Pet Hospitals and Veterinarians Hire Specialists

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In today’s world of specialization, more and more veterinarians and pet hospitals are hiring specialists to help them with legal matters, financial matters, insurance, practice brokerage and even real estate.

Veterinarian Law Firms

Veterinarian CPA Firms

Veterinarian Practice Insurance

Veterinarian Practice Brokerage

Veterinarian Practice Real Estate

In each of these cases, there are local generalists to provide these services and are located close to your place of business.  Typically, a local generalist handles everyone from retail businesses to construction to whatever walks in the door.  However, most savvy veterinarians will trade off location in return for a higher level of industry knowledge and expertise so they make the best decision relative to their competitors and minimize risk.

Whether you are a new veterinarian or a seasoned practitioner, there are law firms who are dedicated to the animal health industry who can save you tons of time and money by focusing on the animal health industry.  The same is true for veterinarian real estate, insurance and accounting/tax.  There are huge advantages to be gained by hiring a specialist who understands the nuances of the animal health industry.

For example, if you own a pet hospital, clinic or vet practice and suspect an employee is stealing cash, a generalist accountant would probably miss this and would not have a clue who to recommend as a specialist.  However, a CPA dedicated to the animal health industry knows a couple experts to recommend.  Or, hiring a VET CPA who has been trained on how to reduce the risk of fraud and theft can save you agony.  This kind of advice is priceless.

Here are several other ways an animal health industry CPA can provide a higher level of service to you:

  • Specialized tax planning techniques – The United States tax code is 67,204 pages long and there are 1,638 different forms. And as you make more money, the complexity increases dramatically which is why the US GAO says that taxpayers overpay $1 billion per year in taxes.  To simplify this, animal health CPA’s focus on aspects of the US tax code that are most advantageous to pet hospitals and veterinarian practices and share techniques that can be harnessed to lower your effective tax rate.
  • Purchase new equipment cost effectively – Animal health CPA’s understand how to finance equipment and expense it better.
  • Cost comparisons – Animal health CPA’s have the ability to compare your costs versus similar hospitals, clinics and vet practices your size so you can understand areas to save money. This covers labor, overhead, fees for services, production, accounts receivable, and more.
  • Due diligence on buying a practice – Most VET CPAs can help you avoid buying an overpriced or problematic business.

 

If you are looking to make the best business decisions for your animal health business, hire a specialist that understands our industry and has a network of experts to recommend as well.

 

VET CPA Association

All members of the VET CPA Association are licensed CPA’s and have been vetted.  In addition, each VET CPA firm is provided with advanced training in proactive tax planning which is well beyond the state requirements for being a licensed CPA.  This advanced training is designed to find loopholes, credits, deductions and strategies to lower your effective tax rate.  While these methods are legal, they often require extra work that a generalist CPA would never consider to offset the incremental time demands.

If you’d like to hear from a VET CPA who is best suited for your animal health business, complete this form today.