That's where I come in. Financial controller and finance director services built specifically for independent optical practices.
Every pair of glasses you sell is a mixed supply. The frames and lenses are standard-rated. The dispensing service is exempt when performed by a registered optician. Which means every single transaction needs splitting between taxable and exempt elements, and the apportionment method you use directly affects how much VAT you're handing over to HMRC.
Most accountants treat optical practices like any other retail business. They file your returns, balance your books, and send you a report at year end. But they don't understand partial exemption calculations, they don't know the difference between separately disclosed charging and full cost apportionment, and they've probably never heard of VATHLT2190.
That gap between what your accountant knows and what your practice actually needs is quietly costing you money. Overpaying VAT quarter after quarter. Missing input tax recovery opportunities. Getting the split wrong between your NHS and private income streams.
And VAT is just the start of it.
You're carrying tens of thousands of pounds worth of frames on your shelves. Some of them sell within days of arriving. Others sit there for months gathering dust, tying up cash that could be working harder somewhere else. Do you know which ones are which? Do you know your average sell-through rate by brand?
You've got NHS contracts bringing in steady but low-margin work, and private patients where the real profit sits. But unless someone has actually broken down the margins on each side properly, you're running on a feeling about which one matters more rather than knowing for certain.
Your registered optometrists and dispensing opticians are your biggest cost after stock. Their salaries, NI, pension contributions, the time they spend on non-revenue activities. Have you ever calculated the revenue each clinician generates against their full cost to the practice? Most practice owners haven't, and the answer isn't always what they expect.
And if you're thinking about opening a second location, you need proper cash flow forecasting to understand whether the existing practice can sustain itself while funding the new one. That's the kind of financial modelling your current accountant probably isn't set up to provide.
Your VAT returns are done properly. The right apportionment method for your practice, compliant with the current HMRC guidance, and structured to make sure you're not paying a penny more than you should be. If your previous accountant has been getting the split wrong, I'll review the historic returns and work out whether there's anything to reclaim.
Your NHS and private income streams are reported separately so you can see exactly where the profit sits. Your management accounts are built around the numbers that actually matter to an optical practice, not a generic template that could apply to any business.
Your frame stock is monitored. I'll show you which brands and price points are selling, which ones are sitting on the shelves, and what that's doing to your cash position. Your staffing costs are mapped against the revenue each clinician brings in, so when you're thinking about hiring another optometrist or dispensing optician, you've got real numbers behind that decision rather than just a feeling that you're busy enough to justify it.
Your bookkeeping, payroll, and credit control are all handled without you thinking about it. And everything gets explained in plain English, not wrapped up in financial jargon that you have to Google afterwards.
I become part of your team. When you've got a question about something, you ring me and get an answer, usually the same day.
Most practice owners I meet are spending hours every week on financial admin that's keeping them away from patients and away from growing the practice. That time has a cost, and it's almost always more than what you'd pay me to handle it properly.
“I literally don't worry about the finance side of the business because I know he's got it covered. He made me feel completely at ease. Having somebody that makes you feel comfortable to hand everything over is a real plus point.”
A short guide covering the most common issues I see in optical practices, from VAT apportionment errors to stock management blind spots. Written in plain English, no jargon.
There's no hard sell, just a conversation about your practice and whether I can help.
Let's talkOr call 07899 296 552 · leigh.cooke@virtufin.co.uk