When should a practice review its actual status reports?

Regularly reviewing actual status reports is crucial for a practice as it allows for consistent monitoring and comparison against projected goals. This ongoing assessment helps in identifying areas where performance may be lacking and facilitates timely adjustments to strategies or operations. By reviewing these reports on a regular basis, management can ensure that the practice stays aligned with its objectives, making it easier to respond to changes in the market or within the practice itself.

In contrast, only reviewing reports after the budget is established would not provide the necessary ongoing insight for effective management. Limiting reviews to tax season does not support the practice in maintaining overall profitability and operational efficiency throughout the year. An annual review for compliance purposes lacks the frequency needed to make proactive changes, which could lead to missed opportunities for improvement or correction. Regular reviews are essential to keep the practice on track and accountable for its goals.