When I started my private practice in 2019, I was worried about the usual things: getting clients, choosing a note and billing system, developing the necessary forms, and most significantly, being a “good enough” therapist to actually help people.
It wasn’t until February, when the dreaded tax forms started rolling in, that I realized I would have to complete taxes for my business. I initially pushed the thought away, telling myself this wasn’t a “real enough” business to have to file taxes, or that the government would be understanding because this was my first year as a therapist.
Eventually, I took action and somewhat clumsily and painstakingly tried to do it myself. In later years, I handed the responsibility over to an accountant and prayed the bill wouldn’t be too high.
It turns out that financial literacy and business savviness are adjectives that can and should describe clinicians. However, as a profession, we have a ways to go. In a recent clinician survey, we found that only 21% felt even somewhat knowledgeable about accounting and bookkeeping.
A Practical Guide
Spring Health recently partnered with Heard—a company that combines software with CPAs to handle accounting, payroll, and taxes—to hold a series of courses on taxes and bookkeeping best practices for clinicians who earn income through contract positions, private practice, or other methods.
Together, we’ve distilled complex tax and accounting information into an ebook that answers these four questions.
How can I choose the business entity and tax designation that’s best for me?
From Sole Proprietors to LLCs and S Corps, you need to decide what makes the most sense given your income, bandwidth, and business model. Choosing a business structure isn’t such a daunting task if you have access to helpful information.
Should I pay quarterly taxes?
While many people think of January to April as tax season, we should be tax-conscious year round. Making four quarterly payments a year will ensure you don’t owe any fines or penalties to the IRS or your state.
How can I optimize my tax write offs?
Personal therapy sessions, home office renovations, and business expenses are all eligible tax deductions and can help reduce your income tax bill. But to save money, you need to know what you can write off and where your receipts are.
Can I do it myself or should I hire a professional?
There are so many do-it-yourself tax and bookkeeping services, and it can be difficult to know if those are right for you. The complexity of your business should determine when to use publicly available tools and when to consult a professional for tax, bookkeeping, and other financial needs.
Get your copy of this ebook to dive deeper into these four areas and learn how to better structure your business’ finances.
Disclaimer: Spring Health is not a legal or financial services firm nor do we endorse any accounting/bookkeeping services. We recommend you speak with tax, legal, and accounting advisors before engaging in any transaction.