bookkeeping process Archives - Therapeutic Bookkeeping

What can I expect to pay for tax preparation?

Ah, tax season! It can be a breeze or an absolute overwhelming time! But what actual costs should you be looking at for tax preparation for your private practice? I get you (needing to plan and all) but I’m going to be completely honest, tax preparation costs for your private practice, and businesses in general, isn’t a one size fits all.

And I’ll tell you why.

It depends on a variety of things like:

The filing status of your private practice (are you an LLC, SCorp, CCorp, etc.?)
The types and amount of itemized deductions you may have for you personally and for your private practice;
How big of a mess your bookkeeping is

The last one is a biggie and has a huge impact on the cost.

Without bookkeeping records for your private practice, or messy bookkeeping records, your tax professional isn’t going to have your total income, total expenses categorized into their tax deductible accounts, or net income… to name a few. Time is money… and if your tax professional has to spend their time, during their busiest time of year, cleaning up your mess, or conglomerating your income and expense totals, you’re going to pay their rate to clean that mess up in addition to their fee to prep your tax returns!

But, okay okay, I know you want a ballpark and a realistic starting point for tax preparation costs for your private practice. You can expect to pay at least $350 for a good tax professional, and generally the fee goes up from there, depending on your needs for your private practice taxes and your personal taxes!

If you need help with tax preparation for your private practice, or ongoing bookkeeping to keep tax preparation costs down when the time comes, get in touch!

Why You Should Outsource Your Private Practice Bookkeeping

Jan 27 by Alicia Bishop

When you started your own private practice it gave you the freedom to help people! But I bet you didn’t realize just how much this means dealing with stuff you DIDN’T go to school for!

As you grow, so do your private practice bookkeeping needs (as well as the stress during tax season!) Which is why it makes the most sense to outsource. Let me explain why…

#1 You can focus on what you do best

I’m going to hazard a guess that alongside your licenses, you didn’t sneak in a bookkeeping qualification as well. And that’s okay! You want to be a therapist, so why are you stressing about receipts and numbers?

When you outsource your private practice bookkeeping, you get the peace of mind that your books are taken care of. Saving you time, and energy to focus on what you do best in your private practice!

#2 You actually save money

Hear me out.

Think of the time it takes you to do your bookkeeping. This time you spend is time lost with a client, or your family, or other parts of your business. And time is money after all!

But, when you hire a private practice bookkeeper they get it done quickly, and effectively because they usually have their own processes in place. So if you look at the numbers (and I really do love my numbers!) it’s much more cost-effective to let a professional do it.

And I haven’t even mentioned the potential costly mistakes you could be saving yourself and your private practice by NOT doing the bookkeeping yourself! In all honesty, I clean up a lot of messes from ‘DIY Bookkeeping’, and it’s not cheap for the client! This isn’t saying that you’re not capable of doing it yourself, but if you truly want to do it yourself, I urge you to take accounting and bookkeeping courses before jumping in!

#3 Finally get really organized

Is your system a drawer that you throw your receipts in? Is it a box? Your desk? The floor?! You’d be surprised at the bookkeeping systems I’ve created to streamline this side of your private practice. But all jokes aside, we can help you clear this off of your plate (and your desk!)

Most decent private practice bookkeepers will help you pick a bookkeeping software that is right for your private practice. Like Quickbooks Online for example. This will let you say goodbye to tons of paper and spreadsheets. Hello (nearly) paperless bookkeeping!

#4 Knowledgeable decision-making

Are you looking at growth and expansion potential? Maybe you want to upgrade your private practice office with some new furniture, or even look into getting a bigger space? Or hiring a clinician. That’s awesome – but do you REALLY know how much you can afford for that new couch, larger space, or clinician? Are you 100% sure what your monthly bottom line is after all expenses are deducted from your gross income so you can make an educated decision on what you can afford? If not, accurate bookkeeping records and reviewing monthly financial reports are KEY to understanding your numbers and the financial story of your private practice.

Big financial decisions like this, just became a lot more clear!

#5 Ditch the tax time stress

It’s not everyone’s favorite time of year, but it’s essential! Now, with your private practice bookkeeping in order, tax season is cheaper and less stressful! Why? Because having a bookkeeping professional on your private practice team means your books are up to date every single month, throughout the entire year. So come tax time, you have nice, clean, bookkeeping records and you won’t be scrambling to figure out your total income, expenses, net income, and all the other necessary information your tax professional needs to prep your private practice taxes!

Oh – and if you think you’ll just hand your tax professional a pile of receipts and bank statements and they’ll take care of it for you, think again! Most tax professionals loathe bookkeeping, and they’ll either say “Hey, you need to get your records in order before I can prep your taxes” or “You just handed me a pile of disorganization during my busiest time of year. This is going to take me a while to go through, so I’ll need to charge you my hourly rate of $$$ to sift through this and compile your numbers for you.”

Hello really large tax prep bill! But if you hand them accurate annual reports that came from your bookkeeper, they’ll love you for it and it’ll save them time, and you money!

Overall, I would always recommend outsourcing your private practice bookkeeping. Particularly if you want to take your practice to the next level, make more money, and ditch the tax time overwhelm!!

Ready to take the next step? Get in touch with us here and we can take care of your bookkeeping needs.

How to Create a Bookkeeping Process You’ll Stick Too

Jan 6 by Alicia Bishop

Did you tell yourself you’d ‘do your own books’ and now you’re staring down the barrel of a ton of bookkeeping you need to do? I know bookkeeping can feel like a never-ending chore for some private practices, and it’s a strenuous task without help.

But, learning how to stay on top of the work with a regular bookkeeping process will ultimately benefit you and your practice (and did I mention it will save you money on your accountant too?!).

That’s why I wanted to make things a little easier and share four ways that will have you streamlining your bookkeeping processes; making it easier and cheaper to file your taxes and manage your books! (Maybe you’ll start getting excited for your taxes too? Or is that a little too far…?)

#1 Starting the New Year Fresh

Although it may seem tedious, taking the time to catch up and organize your books is the first step. It’s far easier to maintain your bookkeeping throughout the year than it is to do it all at once in a stressed panic close to tax season.

So, use this time to investigate what it is you need from your business. Getting your books up-to-date, reviewing your common expenses, and exploring what you need from your practice is the best way to ensure that your time spent bookkeeping is as structured and beneficial to your company as possible.

Not only is being up-to-date for the new year empowering, but it also guarantees less time spent in the future on this time-consuming bookkeeping task.

#2 Hold Yourself Accountable

Using your calendar or schedule database, set a recurring reminder to complete your bookkeeping. You wouldn’t cancel on a client, would you? So don’t cancel on your regular bookkeeping date!

The key to a successful bookkeeping process is consistency. So setting aside time every week, you are sure to stay on top of your books.

If these tasks are treated like client appointments or personnel meetings, not only have they been worked into your schedule, but you also have put yourself in the mindset to complete them. Although it’s not the most exciting part of the job, it is necessary to ensure your practice is doing the most for itself and its clients.

#3 Allocate a Space

Do you have a dedicated space where you can keep receipts, invoices or any other digital or physical paperwork you’ll need for bookkeeping? If you just answered no, I’ve just given you a great excuse to go buy some stationery (you’re welcome!)

By organizing your records now, pulling a specific receipt or invoice in the future will only take seconds, making the process more efficient for your clients and your company. Logging information that is filed together neatly is a breeze, and you should hold on to all invoices, bank statements, and business expense receipts for this very reason.

Note: this applies to both digital and physical paperwork! Get a handy filing system in the cloud and you’ll be able to access it from anywhere to get your bookkeeping done. From your practice, or the comfort of your couch.

#4 Use Spreadsheets

If you don’t want to mess with bookkeeping software like QuickBooks Online quite yet, or you just love a good ole excel spreadsheet, this is a great alternative! You can still record all of your income, expenses, insurance income/claims/reimbursements as needed, and even create auto-calculating formulas.

Or, if you want a spreadsheet, but don’t want take the time to create it or create auto-calculating formulas, I have the perfect solution for you, and it’s made exclusively for therapists!! It’s called The Bookkeeping Cure™ and you should definitely check it out and get started using it right away!!

#5 Out with the Old

Nowadays software is on your side, so don’t shy away from bookkeeping software which can be a great complement to your spreadsheets and EHR/EMR software.

If bookkeeping isn’t your thing, it’s probably not going to be something you’ll ever enjoy, but at least this way it might stop filling you with dread! If you want to ditch your bookkeeping responsibilities instead, click here to learn about our services & apply to work with us! We can help you with all your private practice bookkeeping and tax needs.