Always Ready: A Therapist's Guide to Business Finances and Tax Season
Feb 03, 2025Hi there, James Marland here! As someone passionate about helping mission-driven therapists and course creators, I know that running a business can feel overwhelming—especially when it comes to finances and taxes. But what if you could take control of your numbers and find peace of mind in the process? Today, I’m excited to share insights from my conversation with Danielle Hayden, CPA and co-founder of Kickstart Accounting. Danielle brought her energy and expertise to help us demystify the world of bookkeeping and taxes for 2025.
If the thought of tax season gives you chills, you're not alone. But with some courage, confidence, and the right strategies, you can create a system that sets you up for success—not just during tax season but all year long.
Remember, I am not a lawyer or accountant. Everyone’s situation is different, and if you have questions, contact the appropriate professional.
1. Building the Foundation: Staying Ready Year-Round
Danielle emphasized the importance of always being prepared. Taxes aren’t a surprise—they come every year. Yet, so many business owners find themselves scrambling at the last minute. Her advice? Start with a financial "catch-up" and commit to ongoing bookkeeping.
“The minute you accept money from a customer, you’re a business,” Danielle explained. “You have a responsibility to know your numbers.”
Schedule time each month to review your finances, or better yet, work with an accountability partner or bookkeeper who can keep you on track. Think of it as assembling a thousand-piece puzzle. A professional bookkeeper organizes those pieces, creating a clear picture of your business’s health. When you stay ahead of your finances, you’re not just ready for taxes—you’re ready to make smart decisions that align with your mission.
2. Simplify and Separate: Business vs. Personal Finances
One of the most overlooked but essential steps in managing your business is separating personal and business expenses. Danielle encouraged business owners to use dedicated bank accounts and credit cards. “When you’re diligent about separating your finances, you can maximize your deductions and stay organized,” she said. This simple practice ensures you never miss a deduction and saves time during tax season. If you’re feeling overwhelmed, start by reviewing your income statement and identifying expenses that could be categorized as business-related. Common areas to check include advertising, software, or professional development courses.
3. Overlooked Tax Deductions: Maximize What’s Yours
Many therapists and small business owners miss out on deductions simply because they don’t know what’s available. Danielle highlighted several categories you should consider:
- Equipment and Tools: If you buy tools or devices, like a tablet for client notes, and use them solely for work, they’re deductible.
- Home Office: If you use a dedicated space in your home for business, you can deduct a portion of your housing expenses. As Danielle explained, “Your business can pay rent for the space you use.”
- Clothing: Branded items like shirts or jackets with your business logo qualify as a business expense.
- Travel and Training: Trips for conferences and courses are deductible—just be sure to separate personal and business expenses.
It’s important to keep accurate records and receipts for all these categories. Deduct what you’re entitled to, but avoid stretching the rules too far—tax season isn’t the time to gamble!
4. Save Smart: A Three-Account System
Danielle shared a smart strategy for managing cash flow and tax savings: a three-account system. Here’s how it works:
- Operating Account: For everyday income and expenses.
- Tax Reserve Account: Set aside money for taxes each month based on your profit.
- Rainy Day Fund: Save one to three months’ worth of operating expenses to cover unexpected costs.
“Knowing your numbers isn’t just about taxes—it’s about peace of mind,” Danielle said. This approach not only keeps your finances organized but also ensures you’re prepared for any challenges ahead.
5. Partnering with Professionals: Don’t Go At It Alone
Danielle’s parting advice was simple: Don’t be afraid to ask for help. Whether it’s hiring a bookkeeper or seeking guidance from a coach, the support of a professional can free up your time and energy for what you love most—helping others. “Go take your Saturday mornings back,” Danielle said. “Let someone else handle the bookkeeping.” By investing in professional support, you’re investing in the long-term health of your business. You’ll gain confidence, clarity, and the freedom to focus on growing your mission-driven work.
Conclusion: Put Your Mission in Motion
Finances and taxes don’t have to be a monster in the closet. With the right systems and support, you can turn the chaos into clarity. Remember: staying prepared isn’t just about surviving tax season. It’s about creating a strong foundation that allows you to grow with confidence.
So take a deep breath, review your numbers, and make a plan to stay ready in 2025. Together, we can create a world where course creators, therapists, and mission-driven professionals thrive—one step at a time.
Now, it’s time to put your mission in motion!
Links and Resources
My Clone Solution: https://myclonesolution.com/
Kickstartaccountinginc: https://kickstartaccountinginc.com/
Gift: 6 Tax Tips Every Business Owner Should Know https://kickstartaccountinginc.com/gift
Course Creation Studio: https://www.coursecreationstudio.com/
Course Creation Planning Worksheet Download
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