The KPIs You Should Be Tracking to Increase Profits in Your Physio or Chiropractic Clinic

Running a physiotherapy or chiropractic clinic isn’t just about delivering excellent patient care – it’s also about building a profitable business that supports your life and long-term goals. One of the most powerful tools for clinic owners to improve profits and avoid financial surprises is tracking their Key Performance Indicators, or KPIs.

Whether you’re helping patients recover from injuries or easing chronic pain through manual therapy, knowing your clinic’s numbers puts you in control of your financial future.

As mentioned in this article, we focus on physiotherapy and chiropractic clinics; however, these same indicators often appeal to a wide range of health service clinics.

What Are KPIs, and Why Do They Matter?

KPIs are numbers that measure how your business is performing. They help answer critical questions like:

  • ✅ Are our prices high enough to cover our costs?
  • ✅ Is our revenue growing each month?
  • ✅ Are we getting paid on time?
  • ✅ Are our services or treatment rooms being fully utilized?

Think of KPIs as your business’s vital signs. They’re simply checkups for your clinic’s financial health. The good news? Many modern clinic tools like Jane App, Xero, and Hubdoc make tracking KPIs far simpler than digging through spreadsheets.

Knowing your KPIs helps you:

  • Spot financial issues early before they become costly
  • Make confident decisions about pricing, staffing, and marketing
  • Set realistic goals for growing your clinic sustainably

Let’s look at the most valuable KPIs every physio and chiropractic clinic should track—and how they unlock hidden profits you might be leaving on the table.

Profitability & Financial Health (top KPIs to track)

  1. Break-Even Point

Break-even Point (units) = Total Fixed Costs ÷ (Unit Price – Unit Variable Cost)

  • Shows how much revenue you need each month to cover all costs without losing money.
  • Knowing this helps you set prices, plan promotions, and ensure your clinic stays financially stable.

Questions This KPI Answers:

  • How many appointments must we book each month to cover our expenses?
  • Can we afford to keep our rates the same? If they need to increase, by how much?

How Often to Check:

✅ Review quarterly – or anytime you adjust pricing or add new services.

  1. Gross Profit Margin

Gross Profit Margin (%) = (Total Revenue – Cost of Services Sold) ÷ Total Revenue

(Cost of Services Sold = subcontractors + direct wages + product costs for goods sold)

  • Reveals how much of each dollar earned stays in your clinic after paying direct costs like wages and supplies.
  • Keeping this margin healthy unlocks hidden profits by ensuring costs aren’t silently eating away your revenue.

Questions This KPI Answers:

  • Are the costs of delivering our services too high?
  • Should we adjust prices or negotiate supplier costs?

How Often to Check:

✅ Review monthly or quarterly to stay on top of trends.

  1. Average Monthly Revenue

Average Monthly Revenue = Annual Total Revenue ÷ 12

  • Shows what your clinic typically earns each month and signals whether business is growing, steady, or declining.
  • It’s essential for spotting trends and knowing when to boost marketing or explore new services to drive profits.

Questions This KPI Answers:

  • Is our revenue growing consistently – or declining?
  • Are seasonal trends affecting our income?

How Often to Check:

✅ Review monthly to track ongoing performance.

Cash Flow & Collections (optional)

  1. Accounts Receivable (AR) Turnover

AR Turnover = Net Credit Sales ÷ Average Accounts Receivable

  • Measures how quickly you collect payments from insurers or patients.
  • Faster collections keep cash flowing, reduce financial stress, and free up money you can reinvest to grow your clinic’s profits.

Questions This KPI Answers:

  • Are we getting paid fast enough?
  • Is money stuck in insurance claims or unpaid invoices?

How Often to Check:

✅ Review monthly.

     2. Inventory Turnover

Inventory Turnover = Cost of Goods Sold ÷ Average Inventory

  • Tracks how often you sell and replace products like braces or exercise bands.
  • High turnover unlocks hidden profits by keeping cash free and avoiding money tied up in unsold items.

Questions This KPI Answers:

  • Are products selling – or collecting dust?
  • Should we stock fewer items or promote certain products?

How Often to Check:

✅ Review quarterly.

  1. Aging Receivables Report

While not a KPI itself, an aging receivables report shows:

  • Which invoices are current – which invoices are 30, 60, or 90+ days overdue.

Why It Matters:

  • Helps you follow up on overdue payments quickly.
  • Reduces the risk of losing income to write-offs.

How Often to Check:

✅ Check this report monthly – the older a receivable gets, the less likely it is to be collected.

Operations & Efficiency (optional)

  1. Wages as a % of Revenue

Wages as % of Revenue = Total Wages ÷ Total Revenue × 100

  • Shows how much of your income goes toward paying staff.
  • Keeping wages at a sustainable percentage helps ensure you’re growing profitability without overspending on labour.

Questions This KPI Answers:

  • Are staffing costs sustainable?
  • Do we need to adjust staff hours or roles?

How Often to Check:

✅ Review monthly.

  1. Clinic Utilization

Utilization % = Actual Appointment Hours Booked ÷ Total Available Hours × 100

  • Measures how much of your available appointment time is booked and generating income.
  • Higher utilization unlocks hidden profits by making the most of your space, time, and staff.

Questions This KPI Answers:

  • Are our rooms or clinicians underutilized?
  • Should we adjust hours or add services?

How Often to Check:

✅ Review monthly. 

Good Systems Make It Easier

Modern cloud software can make managing your clinic’s finances far easier. Tools like:

  • Xero – User-friendly accounting software for financial tracking, reconciliations, and reporting
  • Hubdoc – Digital receipt management, syncing directly with Xero
  • Jane App – Clinic management software that handles scheduling, billing, insurance claims, and integrates with Stripe for payments

Investing in the right tech saves time, reduces errors, and keeps your business running smoothly.

Ready to Take the Guesswork Out of Your Clinic’s Finances and Profit in Your Clinic?

Whether you’re a physiotherapist, chiropractor, or both, knowing your KPIs and setting up solid financial systems can transform your clinic from simply surviving—to thriving. This will help you increase profits in your clinic as it allows you to set goals based on these key performance indicators. Then track your progress towards these goals = profit unlocked in a manageable and step-by-step manner. Don’t try to climb Everest in one step! Take a proactive, managed approach to refining your clinic operations.

Our Physiotherapy Clinic Playbook and Chiropractor Clinic Playbook both cover essential financial, tax, and regulatory guidance for physiotherapy practices across Canada, with special notes for British Columbia where applicable. These playbooks are meant for those who are in the early stages of starting their clinic.

[Download the Physiotherapy Clinic Playbook Here →]

[Download the Chiropractor Clinic Playbook Here →]

Alternatively, if you are looking tor help with some of the finance functions (bookkeeping, payroll, accounting, tax or year-end). Book us via this page for an introductory call. We can also help you refine what metrics work best for you and even set up monthly or quarterly tracking as part of our packages.

At Virtual Heights Accounting, we specialize in helping professional service firms like physiotherapy clinics succeed. Whether you’re just starting or scaling your practice, we’re here to make sure your financial side runs as smoothly as your patient care. If you have any issues receiving the playbook. Please email us at info@vhaccounting.ca.