Private Practice Accounting Blog

03

Feb

Bookkeeping, Financial Statements, Taxes

Federal Taxes Are Not a Tax Deduction

Do you remember the IRS mantra for determining if a business expense is deductible? We’ll give you a hint: it’s the acronym RON. Business expenses are deductible if they’re Reasonable, Ordinary, and Necessary. Reasonable is a bit of a judgment call, but a good way to think of it is to consider the amount of money spent. Ask yourself honestly if you’re spending extra money because you consider it an investment in your business, or if you’re just trying to get a bigger tax deduction. Ordinary is easier to determine. Are your competitors in the same industry spending “about” the…

Profit First and Your Therapy Practice

A financially healthy company is a result of a series of small daily financial wins, not one big moment. Profitability isn’t an event; it’s a habit.~ Mike Michalowicz, Profit First If you’re not familiar with the book “Profit First: A Simple System To Transform Any Business From A Cash-Eating Monster To A Money-Making Machine” by Mike Michalowicz, then, well, the title says it all. When you boil it all down, this is a book about putting systems in place that ease off the pressure you might feel to plan for every financial “speed bump” or “pothole” that your business will…

Paying Estimated Taxes in 2021

Whether you’ve been paying estimated taxes for years or you’re entirely new to the idea, now is a great time to review the details. Let’s start with some basics: Your estimated taxes are paid using form 1040-ES. The form has four stubs because there are four payments to make every year.If you are an employee, you make less than $100,000 per year, and you don’t own a business, then it’s very likely that you won’t have to pay estimated taxes.If you are an employee who earns RSUs, check out our post.If you own a business, and if it’s made income…