Ways of Building a Successful Private Practice
Every now and then, people are trying to build private practice. There is one thing that people need to realize and it is that private practice is actually business and not a hobby. Therefore since it is a business, there are several things that are put into combination for it to flourish. Combination is required for effective marketing, proper mindset and the right attitude. Finances is a key factor in setting a private practice. For a successful practice, financial literacy is one of the most essential factors. One needs to know how to manage money and have a healthy relationship with it. Relating to finances, there are a lot of things and they include adjusting thoughts and beliefs around money.
The three piece pie accounting section is something that is in accounting. The meaning of this is that the income that one gets should be divided into three sections which should go into different bank accounts. The tax pie is the first and it requires that the income that is deposited here not be touched until it comes to the time of paying taxes. In a business one needs to pay bills and therefore the second section of the pie is for paying bills. The bills that one will definitely have to pay in private practice are; water and electricity bills, services such as cleaning bills and salaries of course. The pie’s third section is for the personal account. One can find that they have some of the money left after paying taxes and this money can be taken to the second section of the pie which is paying bills. If there are some finances left after the bills have been paid they can be taken to the personal account. This three piece pie section is very important as it makes sure that one does not lag behind in paying taxes or other bills. Also, the three piece pie section ensures that personal and professional funds do not mingle.
One should know the time for investment and the time for saving in money matters. Since one can find themselves spending even what they are supposed to save, they should always have a balance between saving and spending. At times some people tend to over-save which means they cling so much to the money to an extent of forgetting some of their needs and limiting their chances to grow. Some people always have the fear of not having enough. Healthy financial management in a private practice will ensure that there is enough to spend and to save. Good management of the finances is ensured by the three piece pie accounting section. One can be led to overspend or to over-save by having an unhealthy money mindset .