Four-Part Series with Accountant Julie Herres, Part 2: Budgeting and Forecasting for Your Group Practice | GP 08

Four-Part Series with Accountant Julie Herres, Part 2: Budgeting and Forecasting for Your Group Practice | GP 08

Do you know the difference between a budget and a forecast? How do you start setting up a budget? Are there budgeting mistakes you should be avoiding and how important is to have a forecast?

In this podcast episode, Alison Pidgeon speaks with Julie Herres about budgeting and forecasting for your group practice.

Meet Julie Herres

Julie Herres is the owner of GreenOak Accounting. The firm provides bookkeeping, accounting, payroll, Profit First services to private practice owners throughout the United States.

Julie and her team have worked with hundreds of private practice owners, so they are uniquely positioned to be a trusted advisor to clients.

To get more information on GreenOak Accounting’s services or to schedule a free consultation, visit or connect on LinkedIn and Twitter.

In This Podcast

  • Difference between a budget and a forecast
  • Where to start with a budget
  • Budgeting mistakes
  • Setting aside % for profit
  • Why you should do a forecast

Difference between a budget and a forecast

  • Budget: the expenses you know you’re going to have (rent, software, admin team) and try to make a guideline for future months.
  • Forecast: used in tandem with a budget, but to project out a new situation such as maybe adding clinicians to your practice.

Where to start with a budget

Start with a personal budget, as when you know what this is then you know how much you need to take home to maintain your household.

Budgeting mistakes

  • Having a tendency to do just the minimum, realistically in the long term you will have to make additional purchases
  • Look at the last 12 months in case there are big once-off costs
  • Look at expenses once a quarter in the event that there are automatic subscriptions
  • Underestimating how much you’re taking out of the business

Setting aside % for profit

  • Profit: 20-25%
  • Admin expense: 5-10%
  • Overheads: 20-25%
  • Therapist’s pay (clinicians other than the owner): 45-55%

Why you should do a forecast

Forecasting is especially helpful in a group practice because it deals with the ‘whats if’s’.

What if you add another location, hire another clinician, add benefits to the team, etc.

Sign up for free consultation and 5 days of profit-boosting tips for private practice by clicking here!

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Meet Alison Pidgeon

Alison Pidgeon | Grow A Group Practice PodcastAlison is a serial entrepreneur with four businesses, one of which is a 15 clinician group practice. She’s also a mom to three boys, wife, coffee drinker and loves to travel. She started her practice in 2015 and, four years later, has two locations. With a specialization in women’s issues, the practices have made a positive impact on the community by offering different types of specialties not being offered anywhere else in the area.

Alison has been working with Practice of the Practice since 2016 and has helped over 70 therapist entrepreneurs start and grow their businesses, through mastermind groups and individual consulting.

Thanks For Listening!

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