Optometry practice Expected Uncollected Revenue
Expected loss = credit revenue × uncollected share × (1 − recovery)
Gather appointment history, service durations and supply costs. Include staff time, equipment, and admin work. The starting figures are examples. Replace them with your own records.
Formula and worked example
Expected loss = credit revenue × uncollected share × (1 − recovery)
| Input | Example |
|---|---|
| Credit revenue exposed | 50,000 |
| Expected uncollected share | 2 % |
| Expected recovery of unpaid amount | 10 % |
| Calculated result | 900 |
Choose reliable inputs
Allow time for preparation, the service itself and cleaning up before the next appointment. For this optometry practice calculation, use appointment history, service durations and supply costs and a consistent definition of one appointment.
- Staff time: include the portion belonging to this appointment or reporting period, and record where the value came from.
- Equipment: include the portion belonging to this appointment or reporting period, and record where the value came from.
- Admin work: include the portion belonging to this appointment or reporting period, and record where the value came from.
Use the same currency for every money input. Do not mix weekly costs with monthly revenue, or count the same expense in both an itemised cost and allocated overhead.
Should invoiced revenue be treated as available cash?
The loss and recovery rates are entered assumptions. This is not an accounting-standard provision calculation.
What if this input changes?
If credit revenue exposed rises by 10%, this example changes by 90 . This shows the effect of one change; it does not predict what will happen.
Open the calculator, save your baseline, then change the input supported by the least reliable estimate in your records. Compare both scenarios before committing to a price or capacity promise.