Your veterinary practice is busy. The schedule is full, the phones are ringing, overtime is increasing, and your team is exhausted.

So, does that automatically mean it is time to hire?

Not necessarily.

In this episode of the Clean Books, Strong Practice Podcast, host Anthony Barge explains why veterinary hiring decisions must be based on more than workload, frustration, or a single payroll percentage.

A clinic may desperately need additional support operationally but still lack the financial capacity to carry another permanent employee. On the other hand, refusing to hire because payroll has crossed an arbitrary threshold can increase overtime, accelerate burnout, restrict revenue, and force the practice owner to perform work that should be delegated.

The real question is not simply, “Are we busy enough to hire?”

The better question is:

Can the practice support the complete cost of this position through its full cash-flow cycle while protecting patient care, team stability, owner compensation, profitability, and long-term practice value?

In This Episode, You Will Learn:

• Why the commonly used 40% payroll-to-revenue threshold should be treated as a warning light—not an automatic hiring freeze
• How to calculate the true cost of an employee beyond wages or salary
• Why payroll taxes, benefits, overtime, paid leave, training, software, uniforms, equipment, and administrative support must be included
• How seasonal revenue and wellness-plan payments can distort hiring capacity
• Why overtime may indicate that the practice is already purchasing labor capacity at a higher cost
• How inaccurate bookkeeping can create false confidence about what the clinic can afford
• Why a rolling 12-week cash-flow forecast should be prepared before approving a new position
• How to account for onboarding, training, and the employee’s productivity ramp
• Why owner compensation and emergency reserves must remain part of the hiring decision
• How both overstaffing and understaffing can reduce profitability and practice value

Before Hiring, Review:

1. Whether the books are current and properly categorized
2. The complete employment cost of the proposed position
3. Payroll-to-revenue trends over several months
4. Overtime, workload, and scheduling patterns
5. Pricing, missed charges, discounts, inventory, and collections
6. The clinic’s rolling 12-week cash-flow forecast
7. The time required for the employee to become productive
8. The effect on owner compensation and cash reserves
9. Whether demand is temporary, seasonal, or sustainable

Hiring should not be an emotional reaction to a difficult week. It should be a calculated decision supported by accurate financial records, realistic projections, and a clear understanding of how the position will strengthen the practice.

Clean books create clear decisions. Clear decisions create stronger practices.

Hosted by Anthony Barge Presented by LAX Accounting Services

Clean Books. Strong Practice. Peaceful Profitability.

This podcast is provided for educational purposes only and does not replace individualized accounting, tax, legal, lending, human-resources, valuation, or financial advice.

#VeterinaryBusiness #VeterinaryPracticeManagement #VeterinaryFinance #VeterinaryAccounting #VeterinaryLeadership #PracticeProfitability #CleanBooksStrongPractice