The Balance Sheet for 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…
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How Do Health Savings Accounts (HSAs) Work?

How Do Health Savings Accounts (HSAs) Work?

https://youtu.be/BkLqM2xJp8A Employers have many options of providing health coverage for employees, one of which is a Health Savings Account. Health Savings Accounts, or HSAs, are intended to supplement a group health plan. A “group health plan” is the kind of traditional health plan with which we’re all familiar: monthly premiums, deductibles, copays, coinsurance, out-of-pocket maximums, and all the other ingredients you see in these kinds of plans. In general, the purpose of an HSA is to help employees pay for medical expenses by providing them a tax-advantaged way to save their own money in an account specifically made for medical…
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When Should Your Therapy Practice Become an S Corporation?

When Should Your Therapy Practice Become an S Corporation?

You’re around the table at dinner sharing a drink with your friends (beer, wine, non-alcoholic — we don’t judge). Your friend says, “You know, ever since I elected my PLLC to be treated as an S Corporation, I’ve just been flabbergasted at the tax savings. Sure, there’s some added complexity and I have to shell out payroll taxes now, but it’s worth it. Trust me!” Your other friend chimes in, “Yes, but first you have to make sure that it’s worth your while. At lower amounts of gross income, the tax benefits just don’t pan out and you end up…
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