Tag: business finance

CAO Time

Car.

Learning a new skill, such as driving or becoming a therapist, involves a process. In learning to drive, the route is pretty simple. You learn the theory, then you do your driver theory test. Next, you go out and take some lessons. When you’re proficient enough, you do the test. And if you’ve learned your lessons well, you’ll get your licence.

A similar process takes place when you train to be a therapist. You go to school, you learn a bit, then you start trying out your new skills on others in the school, and finally on clients. If you do your lessons well, you’ll earn your qualification. You spend a couple of years putting in client hours, and eventually, you have earned your accreditation. Read more

If your therapy practice were a car, who’s driving?

If your therapy practice is a vehicle, are you an owner, a driver or a passenger?

Think about a car for a moment. You can enjoy the advantages of a car in different ways. You can own the car, drive someone else’s car, or be a passenger in someone else’s car. Read more

Investing in Your Therapy Practice

It can take 3 years or more to get any new practice off the ground, and even then, some struggle for ever to earn sufficient income to support themselves. Often the response to that is to “tighten the belt” or trim expenses to the minimum in order to make ends meet. However, there is another option.

You could invest more money into your practice to give it the boost it needs.Photo no (53)

A practice needs to generate sufficient income to give you what you want out of it (which is VERY important). However, there is a level of activity below which it is costing you money to have a practice. There are some costs you have to incur in order to maintain your accreditation, whether you see clients or not, such as your professional subscription, CPD and a minimum level of supervision. Until your income exceeds the costs of going to work, working is costing you money! You may still choose to practice under these circumstances anyway, and it’s a valid choice. If you’d like to read more about this subject, please see my article on the Breakeven Point.

However, if you’d prefer to earn a bit more, there are many ways that investing capital into your practice could help to make it more profitable. Read more

How Do I Break Even in my Therapy Practice

How Many Clients Do I Need Or How Much Do I Need To Charge

In Order To Breakeven

Your total income from your practice is affected by 2 main factors: the price you charge, and the number of hours you work for which you get paid. A change in one factor leads to a higher or lower total income. If you increase your price, and work the same number of hours, your total income over a period (say a year) goes up. If you work fewer hours but keep the price the same, your income goes down.

“Breakeven” is the point at which your income equals your expenses. If I earn more than the breakeven I make a profit, Wallet and some money on a wooden tableor net income. If I earn €100 in fees, and it costs me €80 in expenses, the difference (100-80=20) is profit or money I can spend. If I earn less than breakeven I make a loss, or net expenses. If I earn €100 in fees, and it costs me €120 in expenses, I need to find the difference from somewhere, in order to ensure all my expenses are paid.

Why is breakeven important? Breakeven gives a benchmark for the minimum you need to earn in order to cover your costs.

Read more

SWOTting Your Therapy Practice

You’ll probably have heard the term SWOT Analysis. The acronym stands for Strengths, Weaknesses, Opportunities and Threats. It’s a commonly used management tool for identifying where your practice is, and helping you to identify priorities and strategies. Sounds a bit over the top for a therapy practice? Maybe, or maybe not.

Often, when talking to therapists, I hear a lot about the blocks and obstacles that may be in the way of them moving their practice on. I’m not denying that these obstacles may well exist. Often, however, I hear quite a slanted perspective. Doing a SWOT analysis, which asks you to look not just at the threats and weaknesses, but also the strengths and opportunities, can help you to highlight positive aspects of your practice that that you may not have considered.

In order to see how this might work, let’s have a look at a SWOT analysis for a fictional practice, “Soft Shoulder, Counselling & Psychotherapy,” a two therapist practice in a small country town. 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
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

Truth or Myth? Common Beliefs About Money and Wealth – Part 2

Did you resonate with any of those beliefs about money and wealth in my last post on the subject? Did any of them stir any thoughts or feelings for you? Perhaps you can relate to these?

  1. Money is the root of all evil. A difficult one this, as it has all the authority of two thousand years of Christianity behind it. However, it seems to be taken somewhat out of context. The first Epistle to Timothy in the New Testament says “For the love of money is the root of all kinds of evil.” Which seems to suggest that it is not the money itself that is at issue, but the meaning and value we place on it. Alternative belief: Money is a tool that can be used in many ways. I choose to use it for the good of all.
    Keep reading, there’s more

Truth or Myth? Common Beliefs About Money and Wealth – Part 1

For some years now I have been interested in exploring commonly held beliefs about money and wealth. My interest is in how the beliefs that we learn growing up  may shape our actions and behaviour as adults. We are all familiar with the one about not being good enough, either in ourselves, our families and friends, or our clients. Like the “not good enough” belief, we come by our values and beliefs about money and wealth as a gradual process of assimilation. Often too, we may never subject these values and beliefs to any substantive examination, but they continue to play on in the background, like a virus running on our computer.euros

Some of the values and beliefs we hold about money and wealth serve us, and some don’t serve terribly well. Maybe it’s time to find alternative ideas that are more supportive of us. Here are some of the beliefs that I have been exploring, perhaps you can relate to some of these:
Read more

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