CVPM key terms

An accounting method that records revenue when it is earned and expenses when they are incurred, regardless of when cash changes hands. It gives a more accurate picture of a practice's financial position than cash-basis accounting.

An accounting method that records transactions only when money actually moves in or out of the practice. It is simpler but can mask unpaid bills and uncollected charges.

Money owed to the practice by clients for services already delivered but not yet paid. Aging reports track how long balances have been outstanding and flag collection problems.

Money the practice owes to suppliers, vendors, and service providers for goods or services already received. Managing payment timing protects vendor relationships and cash flow.

A summary that groups outstanding client balances by how long they have been unpaid, typically in 30-day buckets. It highlights slow payers and helps prioritize collection efforts.

A metric showing the average number of days it takes to collect payment after a charge is billed. Lower values indicate faster cash conversion and healthier revenue cycle performance.

A financial report showing cash generated and used across operating, investing, and financing activities over a period. It reveals whether the practice can meet its obligations as they come due.

A report summarizing revenue, expenses, and net income over a defined period. Also called an income statement, it shows whether the practice operated at a gain or loss.

A snapshot of what the practice owns, what it owes, and the owners' equity at a specific point in time. Assets minus liabilities equals equity.

A calculation identifying the revenue or service volume at which total revenue equals total costs, producing neither profit nor loss. It supports pricing, staffing, and expansion decisions.

Expenses that stay largely unchanged regardless of how many clients are served, such as rent, insurance, and salaried staff. They raise financial risk when volume drops.

Expenses that rise or fall with the volume of services delivered, such as supplies and hourly labor. They shape the contribution margin on each additional client served.

The full sequence of steps from scheduling a client through charge capture, billing, and final payment collection. Weak links anywhere in the cycle reduce realized revenue.

The process of accurately recording every service and product delivered so it can be billed. Missed or miscoded charges cause direct revenue leakage.

A structured list of prices charged for each service or procedure the practice offers. It underpins estimates, invoicing, and negotiation with payers or clients.

A written summary of the duties, responsibilities, reporting relationships, and qualifications for a specific position. It anchors recruitment, performance expectations, and compensation decisions.

A defined set of the skills, behaviors, and knowledge required for success in a role or across the organization. It guides hiring, training, and evaluation consistently.

A structured, periodic review of an employee's work against established expectations, often including goal setting and development planning. Done well, it improves engagement and documents personnel decisions.

A graduated process of addressing performance or conduct problems, typically moving from verbal coaching to written warnings and finally termination. It protects fairness and creates a documented record.

A legal doctrine under which either the employer or the employee may end the employment relationship at any time, for any lawful reason, with or without notice, subject to exceptions such as contracts and anti-discrimination law.

Treating an applicant or employee unfavorably because of a protected characteristic such as race, sex, age, disability, or religion. It exposes the practice to legal liability and undermines morale.

Unwelcome conduct based on a protected characteristic, or severe and pervasive behavior, that creates a hostile or intimidating work environment. Employers have a duty to prevent and correct it.

A documented, step-by-step method for performing a routine task consistently. SOPs reduce variation, speed onboarding, and support quality and safety compliance.

A systematic review of how tasks, information, and people move through a process to find delays, redundancies, and bottlenecks. Findings drive efficiency and redesign decisions.

The proportion of available appointment slots, staff hours, or equipment time actually used for productive work. It informs scheduling, hiring, and capital spending decisions.

Tracking and controlling supplies, medications, and products so the right quantities are on hand without excess waste or tied-up cash. It includes ordering, storage, rotation, and reconciliation.

The process of identifying, evaluating, and reducing threats to the practice, including clinical, financial, legal, and safety risks. It typically combines prevention, insurance, and incident review.

A factual record of an unexpected event such as an injury, medication error, or client complaint. It supports investigation, corrective action, and defense of claims.

Planned activities that monitor and improve the consistency and safety of services against defined standards. It relies on measurement, feedback, and corrective action rather than blame.

The specific group of clients or referring sources a practice chooses to serve, defined by characteristics such as species, geography, service needs, or values. It focuses marketing effort and spending.

The coordinated set of controllable elements, commonly product, price, place, and promotion, used to reach a chosen market. Adjusting them together keeps the offer consistent and competitive.

The distinct place a practice occupies in the minds of clients relative to competitors, built from reputation, service, price, and experience. Clear positioning makes messaging memorable and referrals easier.

Dividing a client base into groups with shared needs, value, or behavior so services and communication can be tailored. Segments often differ by spending level, visit frequency, or service preference.

The total net revenue a client is expected to generate over the entire relationship with the practice. It justifies retention spending and helps set acquisition budgets.

The practice of keeping existing clients engaged and returning through reminders, follow-up, service quality, and relationship building. Retaining clients usually costs less than acquiring new ones.

A structured tool that collects client feedback on service quality, communication, and overall experience. Results guide improvement priorities and can be shared to build trust.

The ability to recognize, understand, and manage one's own emotions and respond effectively to the emotions of others. It underpins communication, conflict resolution, and team trust.

A leadership approach that adapts style, from directing to coaching to delegating, based on the employee's competence and commitment for a specific task. It avoids one-size-fits-all management.

A structured approach to planning, communicating, and supporting organizational change so people adopt new processes successfully. It addresses resistance, training, and reinforcement.

A disciplined process of defining the practice's mission, long-term goals, and the actions and resources needed to reach them. It aligns teams and guides major investments.

A structured assessment of internal strengths and weaknesses plus external opportunities and threats. It provides a shared basis for strategy and prioritization.

The process of addressing disagreement between individuals or teams through open communication, interest-based problem solving, and agreed outcomes. Handled early, it prevents escalation and turnover.

A written set of expected behaviors and ethical standards for everyone in the practice. It guides decisions, sets boundaries, and supports consistent handling of violations.

A situation where a personal, financial, or other interest could improperly influence professional judgment or duty to the practice or client. It must be disclosed and managed.

A legal and ethical obligation to act in the best interest of another party, placing that party's interests above one's own. It applies to those entrusted with money, decisions, or client welfare.

Obtaining a client's voluntary agreement to a service after clearly explaining its purpose, risks, benefits, alternatives, and costs. It respects autonomy and reduces legal exposure.

Ongoing formal learning required or expected to maintain competence and credentials. It keeps professionals current with standards, technology, and best practice.

A written roadmap of an individual's learning goals, activities, timelines, and measures of progress. It connects personal growth to organizational needs.

The process of verifying and documenting a professional's qualifications, licenses, and training to confirm eligibility to practice or be recognized. It protects quality and supports payer or client confidence.