This time of the year can be very stressful for clinicians scrambling to get documents and paperwork together to reconcile the books, therefore this month we are talking about money as we prepare to for “The BIG T,” Taxes. Working for yourself has many rewarding benefits such as helping others, flexible schedules, having control over the income you make, and a host of other rewards; but one major stressor I found to be an issue early on in my practice was TAXES.
One easy way to practice self –care in private practice is to set boundaries in regards to managing your finances which includes taking a long hard look at finances, your taxes, and tax structure.
Clinicians will oftentimes continue utilizing the same habits such as doing their owns taxes or getting a friend to do their taxes. Here are some tips to help you begin to set boundaries in financial tax management.
- Create a road map for your business– You must have some idea where you are going to determine how much you want to spend getting there. If you are having a difficult time determining this I advise you to invest in a coach or a business consultant to help you. A coach or consultant can assist you with determining goals, income levels, and making your business marketable. If you fail to create a road map for your business you run the risk of managing an expensive hobby not a business.
- Forecast! Forecast! Forecast! – Look at your business in segments to forecast your income and expenses to determine how to prepare for next years taxes. Looking at your quarterly numbers is a good way to start.
- Get A Seasoned Professional On Your Team– Just as you would seek a specialist to perform a major surgical procedure or take your high-end car to someone who specializes working on that car type, you should treat your business the same way. Hire someone who specializes in helping small businesses save money, who understands the importance of tax structure, and who can help you identify the many deductions needed to reduce your taxable income.
- Save, Share and Spend Smarter- After you have hired a seasoned professional to assist you in determining ways to spend smarter, attend workshops that will increase or add value to your clients and a) generate more revenue, b) minimize purchases, and c) utilize the resources you have. I have found that you can always find a new book on Amazon to purchase, but if you check with one of your colleagues you may discover that they already have that resource and will allow you to borrow it. Sharing resources saves money.
Thank you for reading my blog; If you need any assistance, feel free to contact me at 678-585-1966.