Don’t Take Tax Advice from Therapists
An interview with Julie Herres of GreenOak Accounting on why you shouldn’t take tax advice from random therapists in a Facebook Group. Curt and Katie talk with Julie about common mistakes therapists make while trying to do their own bookkeeping and accounting, a new way to look at expenses, what is (and is not) tax deductible, what business entity you might consider, and why the picture is extra complex right now, meaning expert advice is especially important.
It’s time to reimagine therapy and what it means to be a therapist. To support you as a whole person and a therapist, your hosts, Curt Widhalm and Katie Vernoy talk about how to approach the role of therapist in the modern age.
Interview with Julie Herres, GreenOak Accounting
Julie Herres is an accountant and the owner of GreenOak Accounting. Her firm provides accounting, bookkeeping & tax services to private practice owners throughout the United States. Their mission is for every practice to be profitable! Julie and her team have worked with hundreds of private practice owners, so they are uniquely positioned to be a trusted advisor to clients. Julie also hosts the Therapy For Your Money Podcast, where she talks about all things money & finance for private practice.
In this episode we talk about:
The common mistake of not saving enough for taxes
Bookkeeping mistakes
How to look at your numbers, what numbers you should know about
Expenses that may be outsized for your need
Problem-solving for when your numbers are out of whack
The importance of planning and having a conversation with an expert
Being a good steward of the money that is coming into your therapy business
What you can do proactively to plan for your business and taxes
What you can do to clean up your books and then plan ahead going forward
The value of basic budgeting and forecasting, even for 2021
Uncertainty and luck can be navigated
Covid expenses and plans for investing in growth
What you can still do to address 2020 taxes (including quarterly tax payments)
What to spend money on when you have extra money at the end of the year
The possibility of maximizing retirement accounts, etc.
What you can do into 2021 that still impact 2020 taxes
The need for really good advice based on the complexity of income, loans, etc.
Which experts to go to for advice, which to go to implement your plan
The danger of taking tax advice from a FB group and other questionable advice
Personal expenses are not typically tax deductible (therapy, clothes, makeup, etc.)
What you can deduct related to gifts
Marketing expenses and usual and necessary expenses for business.
Different business entities and some of the things to consider when deciding (spoiler alert: get advice because these things are so complex and depend on your full financial picture
Things to consider in becoming a corporation and who to get help from
How to prepare for changes (or potential changes) expected for 2021
The way in which having an accountant can support you in staying abreast of what you need to know as a business owner
Resources mentioned:
We’ve pulled together resources mentioned in this episode and put together some handy-dandy links. Please note that some of the links below may be affiliate links, so if you purchase after clicking below, we may get a little bit of cash in our pockets. We thank you in advance!
Julie’s website: GreenOak Accounting
Therapy for Your Money Podcast
Free tax planning checklist: greenoakaccounting.com/tax
Relevant Episodes:
The 4-1-1 on your 401K
Connect with us!
Our Facebook Group – The Modern Therapists Group
Get Notified About Therapy Reimagined Conferences
Our consultation services:
The Fifty-Minute Hour
Credits:
Voice Over by DW McCann https://www.facebook.com/McCannDW/
Music by Crystal Grooms Mangano http://www.crystalmangano.com/
