Welcome to the Therapy For Your Money School of Accounting! Today, Julie's going over key financial terms that are vital to running a successful business.
Pre-order your copy of Profit First For Therapists by clicking here!
EPISODE HIGHLIGHTS
- A = Asset
- Any resource owned or controlled by a business
- B = Burn Rate
- Measures your outgoing cash flow based on the money your practice typically spends each month
- C = Cash Accounting
- Method of accounting that only reflects transactions at the time the payment is actually received or made (versus accrual accounting method)
- D = Double-Entry Bookkeeping
- When each transaction has both a debit and a credit - this ensures accuracy, and balances your financial statement at all times
- E = Expenses
- Any cost associated with running your practice (includes a variety of things - payroll, office supplies, technology costs, rent/utilities, taxes, etc.)
- F = Fiscal Year
- The timeline that you use to budget your finances
- G = General Ledger
- Where every single transaction is accounted for in order to prepare budgets, taxes, audits, etc.
LINKS & RESOURCES
GreenOak Accounting - www.GreenOakAccounting.com
Therapy For Your Money Podcast - www.TherapyForYourMoney.com
Profit First for Therapists - www.ProfitFirstForTherapists.com
