Episode 90: The ABCs of Accounting (Part I)

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