Financial Self Care
What is financial self-care anyway?
We’ll start where we always start: good old-fashioned financial records and reports. It may seem well, boring, but self-care usually isn’t all fun and games–just like chocolate cake is no replacement for regular dental appointments.
Most of our clients are back to “normal” after the onset of COVID-19 from a revenue perspective, or making even more than usual. However, most offices are still delivering services via telehealth or hybrid telehealth/in-office visits. That alone makes it hard for anything to feel normal. We are already over halfway through the year, so it’s time to talk about some things you can do now to take care of yourself and your practice.
We aren’t the only ones talking about it. There has been a lot of talk about self-care during this pandemic! That’s because it’s important to go back to the basics to make sure everything is humming along in your personal and professional life. There is so much to juggle and learn during this strange time.
It’s one thing to schedule a morning yoga session and another to know how to practice self-care with your finances.
Start by asking yourself some basic questions: How did Q1 and Q2 go? Is income up compared to last year? Down? Did business dip and come back up? How about expenses? Get honest with yourself now that the initial shock waves of COVID-19 have (hopefully) calmed down a little. Once you have a good idea of what has happened financially this year so far, check in with your cash position. Is your cash reserve increasing or decreasing?
Next on the docket is to face the music when it comes to business taxes. Federal tax returns were due July 15th. Have you filed and paid your 2019 taxes? Do you have the money to do so? Have you been saving & paying for your Q1 and Q2 quarterly estimated taxes? (Those are both due on July 15, too -- although some states did not offer extensions.) If you received a Paycheck Protection Program loan, do you have a grasp on how that might affect your 2020 tax liability? There’s a lot to analyze and even more to prepare for before the year ends. We’re accountants, so we love this stuff, but we get that not everyone feels the same way!
If this is something you have been avoiding for a while, take the plunge and peek at the numbers. It’s probably not as bad as you think, and if it is, it’s better to know what’s going on now than to wait until the end of the year. Trust me.
If you’re thinking: What if I don’t know what I’m looking at when I’m reviewing the reports? Don’t worry! We schedule quarterly or monthly financial strategy meetings with all of our monthly clients. It’s a no-judgment zone where we objectively review what happened and plan for the future. If you’d like a trusted advisor to bounce ideas with and talk through your reports, schedule a consultation HERE.
This article is designed to provide information only and should not be considered legal or tax advice. Because of the complexity of the law and the variables in your own personal tax situation, you can’t rely on our advice specifically related to your unique circumstances. In order to get the best tax savings and legal advice available to you, you should consult with your own accountant, attorney, or advisor regarding your particular facts and circumstances.
GreenOak Accounting specializes in working with private practice owners across the United States. For more information on our services, visit our website.
