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TL;DR: Year One in Practice

Welcome

 

Materials for this course:

TL;DR: Steps to create your PLLC: If you haven't registered your business as a PLLC this includes all the steps to get your business set up.

TL;DR: Accounting for your Practice: Excel or GSheets Income and Expense tracking - See Getting Started Guide Video

TL;DR: Income Statement - Practice Finances: This gives a bit more detail about line items on your Income Statement.

TL;DR: Year One Practice Guide This covers various topics that come up your first year in practice.

  • Bookkeeping Solutions
  • Saving for Retirement
  • 1099-Misc
  • State & Local Taxes

One Page Cheatsheet of what needs to be done over the year.

 

Practice Finances & Bookkeeping

Accounting for your Practice

Using the Practice Finances Sheet

Getting Started covers the excel sheet we have linked above and how to start using it in your practice.

Understanding your Numbers

This goes into a bit more detail about the Federal, State and Local tax estimates on the provided excel workbook.

Questions & Answers

Should I owe any federal taxes over the amounts estimated for me in the Practice Finances tab?

 
The Practice Finances tab only factors in income from your practice. Income from a part-time job, interest, or income for a partner is not included in the estimate.

 

When should I become an S-Corporation? What is an S-Corporation?

 
Becoming an S-Corporation is outside the scope of this course since it is a fairly complicated topic, but we’ve covered when you should consider making this election in several blog posts. The quick rule of thumb is that if you are making over $75,000 net then we should more than likely talk about it. To give an example, the practice in the Understanding Your Numbers video made the S-election for 2019. 

Blog posts discussing the S-Corp election:

Should I be an S-Corp? PLLC? LLC?

How does an S-Corporation save me money?

What is reasonable salary?

 

 

I sublease my office space. Where does this go?

 
Sublease rental income should be broken out separately from service income. You can add a new income line within the spreadsheet under Service Income, above Refunds.

 

I bought something personally. How do I record this?

 
You should record the expense on the spreadsheet or in your accounting software. Then you can either reimburse yourself or count it as a cash contribution to your practice.

 

What should I do if I want you to do my Federal Taxes?

 
Schedule a phone call with us using the New Business Client Call. We prioritize Therapy Practices but we only take on so many tax clients.

 

What is the difference between Accountants and Financial Planners?

 
Accountants can help with bookkeeping and taxes. Financial Planners tend to focus on what and how you are investing and help you develop a financial plan.

 

Why do you recommend SEP-IRA versus ROTH IRA?

 
Straight up tax deductions, plus with a ROTH IRA you need to keep an eye on the income limitations each year. If you are married, you need to factor in your spouses income as well for that income limitation. A SEP-IRA is all about your business.

 

What do you do with the expenses from before you open your business account?

 
Add them to the spreadsheet, but make note that they were from before the bank account was opened.

 

How do I transfer the ‘salary’ from the business?

 
You can write a check to yourself or transfer the money to your personal account via ACH.

 

How do I send you any follow up questions?

 
See below, we added a contact form for questions and feedback!

 

 

Have you heard? You can now watch our previously recorded Webinars On-Demand! Watch Now!