has a heart for “helping those who help others”. With a career in banking for ten years and a huge customer service background, she courageously took the leap into the accounting world. After juggling going back to school, raising her newborn, and being married to a therapist in private practice, Jennifer came out on top as a successful CPA.
Being married to someone in the field, Jennifer quickly learned that therapists are not so strong in handling accounting or financing aspects of a private practice. Jennifer stated how she felt that mental health professionals were undervalued, and she has made it her mission by helping the population truly run a successful business. Wouldn’t you want a CPA who specializes in working with therapists?
“Jennifer, what is the best advice you have received in regards to building a business, or becoming an entrepreneur?”
"The only way you can fail is to give up. Push through it and move through the process."
Touching back on Jennifer’s trek to accounting, something she had to overcome to be where she is today was her insane schedule. Working full time, commuting to night classes, and raising an infant, Jennifer looks back and is astounded at her drive. Because of that, she now has the ability to passionately help other people and not be, as she called it, a “cubicle dweller”.
Jumping into the five keys to running a successful Private Practice…
Key #1: Choose an appropriate business entity
Don’t work under your own name. But, why? Jennifer says you are more open to liability and you will be paying too much in taxes.
Set up a plan, either an LLC or an S Corp, and learn which one would be a better fit before diving in blindly. -LLC = Limited Liability Company - This protects personal assets, which is extremely valuable. -S Corp = Subchapter S - This is more complicated, but if you are at a higher income level, then you can save more in your taxes.Make sure you work with someone like yourself or a business attorney in order to choose the right incorporation or business entity. * K2 Visionaries & The Private Practice Startup recommend finding someone local or Legal Zoom as a way to establish your incorporation.
Key #2: Know your net worth
Keep up with your income, expenses, and managing your books. -If you have the information in front of you, you can learn how to grow your practice. Take the time to put the numbers on paper, and that way you will see how to make progress. Don’t move blindly ahead.
Key #3: Know what you owe in taxes and when to pay them
Be aware of tricky taxes you may not even know about! Make sure you cover all fronts and are fully aware of what you need to budget.
Key #4: Budgeting
Formulate a structure in order to create savings, but also to pay off any previous debt.
Keep in mind that with starting your own practice comes a need to plan for a budget and brainstorm how much you need to set aside.
Key #5: Knowing your self-worth
You are an expert in the field and your time is valuable, therefore don’t feel bad for charging your clients. It takes a qualified professional to be a therapist, and you deserve to be paid for that time!
One thing that Jennifer wanted to make sure the listeners took away was that there is always someone out there on your side and willing to help.
Jennifer ended by expressing…
“I value what therapists and counselors in the mental health profession do, and I want to do my part and to help you have a successful business.”
Resources / Books mentioned:
www.irs.gov - Jennifer recommends looking this over to learn a lot of helpful tips!
www.quickbooks.com - Great and straightforward resource for bookkeeping!
K2 Visionaries and The Private Practice Startup also recommend: -Shoeboxed - a way to track your expenses, create expense reports, track mileage, etc. -Turbo Tax - Tax returns made simple if you are a do it yourselfer -Wave Apps - another great way to track your income, expenses and make reports
Jennifer’s giveaway is week is 20% off of an 8-week program that is offered to therapists, teaching all the essentials of being in private practice. If you reach out and mention this, you could score this sweet deal!!
CLICK HERE to listen to Jennifer’s podcast, and be sure to check out her recommendations! Assure you subscribe so you can stay in the loop of ALL the podcasts we release. The Private Practice Startup would also be super grateful if you could rate and review our podcasts - thanks again for allowing us to Inspire YOU from Startup to Mastery!
~Dr. Kate, Katie & The Private Practice Startup Team