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Do you enjoy or dread managing your practice’s books? When should you work with a financial professional about your taxes? How can you use the Profit First principles to manage your money better?
In this podcast episode, Whitney Owens speaks with Julie Herres about using Profit First in your practice.
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Meet Julie Herres
In This Podcast
- Money tips for new solo practice owners
- Managing the money of a mid-sized practice
- The Profit First principles
- Julie’s advice to Christian counselors
Money tips for new solo practice owners
Even though it is standard to bootstrap expenses at the beginning of any new business venture, it is still recommended to work with a financial professional, especially at the beginning of tax season.
You don’t know what you don’t know. There’s a lot of complexity to taxes when you have a business, so at the very minimum, I recommend [working with a financial professional]. (Julie Herres)
In some cases, practice owners enjoy doing their bookkeeping as a hobby and also as a way to save money.
However, if you do not have the time or the energy to deal with the books, a specialist at Green Oak Accounting can take that over for you as well.
Payroll adds a new level of complications. There are a lot of little things that can go wrong … [and] things that you might need advice on, and to have a relationship with someone who knows your financial situation and who can talk through some of these situations with you … can be helpful for practice owners. (Julie Herres)
Managing the money of a mid-sized practice
In the 10 – 15 clinician range, practice owners tend to be intentional with their time and realistic about what they need help with.
With the increase in revenue, more things can go right and wrong. However, with an increase in income, there is a bigger scope for financial and goal planning to be done.
The Profit First principles
The main principle behind Profit First is that business owners pay themselves a percentage of income at the beginning of each month.
The second main principle is that business owners are encouraged to manage their cash flow better by using a variety of bank accounts, instead of one big one.
Some of the core principles of Profit First are that we are going to use … smaller bank accounts and [pay] them in a sequence [of] allocating for profit, then taxes, then [everything else the business needs], and we remove temptation in the sense that the tax money is not ours to spend. (Julie Herres)
The third principle of Profit First is that once the money has been allocated to its specialized bank account, it cannot be used for something else.
This also helps you to learn where your business is doing well, where you can do better, and where the problems can be solved.
Julie’s advice to Christian counselors
Having a profitable practice makes everything easier. You owe it to yourself and to your community to have a profitable practice.
Books mentioned in this episode:
Useful links mentioned in this episode:
- Visit GreenOak Accounting and connect with them on Instagram and LinkedIn
- Listen to the Therapy for Your Money podcast
- Check out this ratio tool and money allocation pie chart for your business
- Julie Herres on How to Save Money in Your Practice | FP 60
- Join the Faith in Practice Conference from April 21st to 24th
- Take Faith in Practice further with the Mastermind Course
- Join the Faith in Practice Facebook Group and subscribe to the email list
- Email Whitney: whitney@practiceofthepractice.com
Podcast Sponsors:
- Use promo code ‘JOE’ to get three free months to try out TherapyNotes, no strings attached, and remember, telehealth is included with every subscription, free.
- The Christian DISC® is a personality assessment that divides personality into four types and integrates insight from scripture and emotional intelligence. Use promo code FAITHINPRACTICE to receive a 50% discount.
Check out these additional resources:
- Shrink Think is Saving Therapists Time and Money, with Aaron Potratz and Nathan Hawkins | FP 130
- Next Level Practice
- Practice of the Practice Podcast Network
- Group Practice Boss
- www.practiceofthepractice.com/apply
Meet Whitney Owens
Whitney is a licensed professional counselor and owns a growing group practice in Savannah, Georgia. Along with a wealth of experience managing a practice, she also has an extensive history working in a variety of clinical and religious settings, allowing her to specialize in consulting for faith-based practices and those wanting to connect with religious organizations.
Knowing the pains and difficulties surrounding building a private practice, she started this podcast to help clinicians start, grow, and scale a faith-based practice. She has learned how to start and grow a successful practice that adheres to her own faith and values. And as a private practice consultant, she has helped many clinicians do the same.
Visit her website and listen to her podcast here. Connect on Instagram or join the Faith in Practice Facebook group. Email her at whitney@practiceofthepractice.com
Thanks For Listening!
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Faith in Practice is part of the Practice of the Practice Podcast Network, a network of podcasts that are changing the world. To hear other podcasts like Empowered and Unapologetic, Bomb Mom, Imperfect Thriving, Marketing a Practice or Beta Male Revolution, go to practiceofthepractice.com/network.
