Banking 101

Photo courtesy of Simon Cunningham

It’s pretty overwhelming to consider getting a business started from the ground floor. There are so many different issues to attend to, and generally speaking, we therapists are better with people than we are with numbers. Banking is a pretty simple concept that we are all familiar with, but I don’t see many therapists who utilize the benefits of our modern banking system.

Have separate personal and business Banks. I suggest having completely different banks, not just accounts at the same bank. The main reason for this is that it’s harder to transfer money Beer from one bank to another than it is between accounts. This builds an extra buffer between your personal life and your Right business life, which is a key issue for all of us in this line of work. We need to be able Downs to step aside from Clutch our own concerns so that we can fully attend to the concerns of our clients. Setting our money up in the same way we wholesale nfl jerseys practice counseling or therapy makes for a smoother running financial situation.

Setup multiple accounts with your business bank. I have 4 accounts setup for my business: A main checking account for all deposits and expenses, and three cheap nfl jerseys savings accounts. The savings accounts are setup as follows: Tax Savings, Paid Time Off (PTO), and Emergency Funds (EF).

It is vital to have a separate account for your quarterly tax payments. At the beginning of each month, I transfer funds from my main account to my tax savings account, and I leave it alone. I don’t use that money for anything except to pay my quarterly IRS payment. It will be painful when tax season arrives and you’ve neither paid your quarterly taxes, nor saved for the tax bill that will inevitably hire arrive from the IRS because you underpaid.

My PTO account is funded monthly with one-days pay. So if I work wholesale mlb jerseys 6 months, I will have 6 days of pay built up in this account. This is something new that I’ve just begun funding because I’ve over gotten tired of not mentally being able to fully go on vacation because of financial concerns. I will still take vacations and not pay myself from my PTO account, but this account is life there if I need a mental health day, or if I get sick.

My Emergency Fund (EF) account is setup as follows. After I have paid all of my bills (salary, insurance, rent, expenses, etc), I run a balance sheet to see if Doublette I earned enough money the previous month. If there is a surplus, I transfer that money into my EF. This account is usually smaller and slower growing because I generally run a pretty tight budget, but it does get a cheap nfl jerseys few hundred dollars added to it from time to time.

Photo courtesy of Simon Cunningham via Flickr

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