Financial Statements Blog Posts

10

Sep

Financial Statements, Therapistsbalance sheet, financial statements, private practice, therapists

The Balance Sheet for Therapists

We’ve previously covered the Profit & Loss Statement for Therapists, so now it’s time to unpack another important statement: the Balance Sheet. Think of running a business like filling a bathtub (who doesn’t?): the Profit & Loss is focused on how much water is coming in through the tap and how much water is lost to evaporation. On the contrary, the Balance Sheet looks at the amount of water that is currently inside the tub at a particular point in time. That’s as far as we can take the metaphor though, otherwise we’ll start talking about owing bathwater to the…

The Profit & Loss Statement for Therapists

“... a wiser fella than m'self once said, sometimes you eat the bar and sometimes the bar, well, he eats you.”The Stranger from “The Big Lebowski,” (who was actually talking about bears) If you’re not a fan of the cult classic movie The Big Lebowski, the message here is, “You win some, you lose some.” But if you’re wondering how much you’re winning and losing in your therapy practice, it’s time to pull up the Profit & Loss Statement (the “P&L” for short, also known as the Income Statement). Once you understand how to use it, the P&L is likely…

What are Financial Statements and why do I care?

Let’s get to the most important part first, namely why you should care about your financial statements. Your financial statements show how your business is doing, they provide various ways to measure goals and output, and, if you don’t know what’s going on in your business, they will show you. Most significantly, they will let you know if you are making money. Your financial statements will help you answer questions like: Can I hire a new employee? Do I have enough money to pay my bills? Can I spend this money on new computers? Am I reaching my goals for…