The Body of Accounting Blog
EMRs do so much and are used for so many critical tasks in patient and practice management for those in the healthcare industry that confusion over their limits is commonplace. It’s software that can do a lot for you, but not everything.
What can’t it do? Your accounting, for one.
Too many people don’t understand the sacrifices, responsibilities, and risks they’re making when they take on a side hustle. It could be a financial disaster very, very fast. Just because it’s a side gig doesn’t mean that you don’t still have to do a lot of the same structure as a real business.
Extra income very literally comes at a cost. That’s not to say that you’re doing anything wrong, but there are tax considerations that you should know about sooner rather than later.
Stephanie leaped at the opportunity to become a spa owner. In her excitement, in getting up and running, she never opened a business checking account and used her personal checking account to operate her massage spa.
It wasn’t intentional, she was going to do it, but one day lend into weeks, which lend into months, which lend into the end of the year.
When tax time approached, Stephanie needed to get financial statements and financial documents to her tax accountant, she couldn’t remember who the purchases belonged to. Were these purchases and deposits personal or were they for the spa?
We live in an age of online gurus telling us at every turn how simple it is to make six or seven figures. I’m here to tell you that if you’re looking for easy, then business ownership is not for you. That said, having a good grasp of your numbers will help you immensely.
It’s not glamorous, but you need to create a budget. There is a difference between setting a target and creating a plan to achieve it.
You’re in luck, my friend: Here are three steps to get you there.
As a business owner, you must continuously learn, adapt, and grow to keep your business in the best possible position to succeed. This means that professional development isn’t something that sits on your wish list–it’s a necessary investment.
Internal controls are the financial rules of your business. What I like about the process of setting rules for our business is that, once established, we feel compelled to follow them. Another motivator? The lack or absence of strong internal controls creates an opportunity for fraud. Are you opening the door to a potential thief?
Here are my suggestions on some essential ground rules.
A critical component of managing your finances is review as well as analysis. Financial review should not for the quarter. As the summer winds down, now is the time for a seasonal review to discover trends about your financial performance this time of year. How did the months of June, July, and August impact your revenue, expenses, and cash flow? It’s essential to review the results while they are fresh.
School’s in session…now is a great time for a summer financial review. Let’s do this.
You need to find ways to regularly integrate self-care into your life. Manis and pedis are lovely, and you work hard to earn some time to indulge yourself. Unfortunately, though, they aren’t enough to revive, refresh, and reset your well-being.
Here are some steps so that you too can include self-care in your schedule and budget.