Tag: accounting records

Could Your Practice Use a Little Discipline?

I have been writing a book about starting a practice, and as I have been honing the framework of what I want to say, the word discipline keeps coming to mind. Discipline is a loaded word for me. It conjures images of rigid formations and punishment for infringements of rules. It reminds me of harsh school teachers and the worst of organised religion.

And yet the word persists in my mind.5 pillars Cloud 2

I am learning Spanish. I don’t have a particular gift for languages, but I like the sound of the language and I love learning. I also like to travel abroad, and some familiarity with other languages is always a benefit. So despite my minimal innate gift for the Spanish language, I persist. I try to do about 15 minutes every day. I’d like to say I do it faithfully every single day, but I do miss the odd one. However, the consistency of my application is paying off. In other words, the discipline is working. My memory for the words and phrases is improving, and my tongue and ears are slowly winding themselves around the foreign sounds. I still have a long way to go before I am ready to be let loose on the unsuspecting Spanish population, but even I can see that I’m better than I was a year ago. Read more

A Business Mind Set

In his classic series of E-Myth books, Michael Gerber speaks of the entrepreneur mind set, and in particular the distinction that he sees between those who succeed in business and those who don’t.

The E-Myth of the title, is the entrepreneur myth, that anyone who starts a business is an entrepreneur. He then goes on to debunk this myth. Everyone who is in business spends time working in the business. In the case of therapists, we spend time working with clients. However, that time is not spent attending to the needs of the therapist, or of the therapist’s business. And there lies the distinction that Gerber draws between those who succeed in business and those that don’t.

Those who succeed spend time, not just IN the business, ie attending to the needs and affairs of the clients, but also spending time working ON and thinking ABOUT the business, ie attending to the needs of the therapy business.

So what does working ON the business of therapy look like? Read more

How Well is Your Practice Performing?

How do you know you’re earning enough to pay your bills? You may remember that this was a question I addressed some weeks ago, when I showed you how to calculate the Break Even Point for your practice. (You can read the article here.)

Calculating the Break Even Point gives you an idea of the number of clients you need to see in order to cover your costs. Or if you work a consistent number of hours, it tells you how much you need to charge for each hour you work.Closeup portrait of cute young business woman smiling

So, having calculated your Break Even Point, and you know what you need to do, then what?

Well, the break even point is what’s known as a Key Performance Indicator or KPI. In other words, it’s used to help you keep track of how you’re doing in your practice, financially speaking, without having to go to the trouble of preparing regular financial accounts. You find one figure that tells you whether you’re roughly on track or not and use that as a bench mark. KPIs vary from business to business, and from practice to practice. They may be stated as we have already seen, in terms of clients, time or money. Read more

Time to Get those Figures in Order!

It’s that time of year again, when those green forms from the Revenue appear in the letter box, and you promise yourself that this time next year it will be a different story. This time next year, you’ll have found a way of keeping track of your practice finances, so that you’re not facing a climb up Mount Everest in order to meet the submission deadline of 31st October.

Except that, this year, the deadline isn’t the 31st October, unless you plan on calculating your own tax liability. This year, for the first time, there may be a penalty for not calculating your own tax liability, unless you submit your return by 31st August 2014. Read more

Starting a Therapy Practice – a Ten Point Plan

Ray Pembroke is a Chartered Accountant and Partner in Pembroke & Pembroke Chartered Accountants, 15 Ormonde Road, Kilkenny
Tel: 056 7762027 email: ray@pembrokes.eu
The Firm specialises in dealing with the affairs of Medical Doctors and related Para-Medical Practitioners.
Ray says: “The initial meeting with us is always free, and, we would be pleased to advise how we might be of assistance to you with your Practice”

Ray Pembroke, Chartered Accountant, of Pembroke & Pembroke, Kilkenny, has some sage advice for those starting their own practice:

“So you have decided to set up as a Self Employed Therapist.  In order that you can build a successful and viable Practice I would recommend that you follow this 10 Point Plan:-

Read Ray’s Ten Point Plan here

The Importance of Intention

“Nature abhors a vacuum” I was taught in one of my first science classes. Whether you’re talking about air rushing in to fill the empty space, or how other people’s goals and intentions can fill up the space in our lives, it’s true.

Nothing gets done without there first being an intention. My big indulgence in life is spending time with friends and family, often away from home because I like to travel too. People often say to me, “Oh, you’re off again,” or “You’re great to organise that.” But it doesn’t happen by accident.sun

Read more about the importance of intention

Managing Your Therapy Practice

Here we are looking at the fifth section of the Therapy Practice Business Assessment as the basis for making some changes to your therapy or counselling practice in 2016. You can read the blog posts in which I made suggestions in the previous areas by clicking on these links:

Knowing Your Practice

Growing Your Practice5 pillars Cloud 2

Minding Your Practice

Valuing Your Practice

Today we’re going to look at the fifth pillar of a successful practice, Managing Your Practice.

Keep reading for some great ideas

More About Accounts – Making Sense of the Figures

Comparison With Previous Period

One feature of your typical set of financial statements is that they give comparative figures for the previous accounting period (usually a year, but in larger organisations accounts will be prepared more regularly so the comparative may be the previous month, or quarter.) The benefit of comparative figures is that the previous period acts as a benchmark against which to measure this period.

Photo no (20)You will remember when I talked about projections, the same thing applied, but in that case, the comparison was between the actual and the budget figures.

The meaning that we take from the figures presented will depend on our expectations. If we wanted to earn more this year, but the figures are telling us that we earned less, then that gives us important information for planning purposes. The figures can then be broken down, analysed, and can inform decisions about next year’s activities.

But wait…there’s more

Price War

There used to be an old joke about a man selling eggs. One morning he put a sign outside his door saying “One dozen eggslarge eggs, €2.50.” An hour later, he looked out the door of his shop to see another shopkeeper on the other side of the road had put a sign out saying, “One dozen large eggs, €2.25.” So the first guy changed the price on his sign to €2.00.

Wait, there’s more to this yolk!

In your Therapy Practice: Don’t Confuse Cost Savings with Cost Effectiveness

Photo no (48)One way to sabotage your practice is to confuse cost savings with cost effectiveness. Some costs have to be incurred in order to run your practice. Some are optional. Some costs will generate income for you down the road, others will not. Some costs will bring other benefits, such as developing your skill base, or your confidence. Be aware of where you have choices, and choose not just the cheapest option, but the most cost effective.

Keep reading, lot’s more here!