Spring Cleaning your Practice 🧽
Day 4 - Finances
Happy Friday!
This is a short email course on spring cleaning your practice - 5 emails, with the last one on Monday.
Finances 👛
Today we are looking at finances.
The goal: Be on top of your practice finances
The strategy: Block out time for a financial review
Check for any money owing (client payments)
Reconcile the last month (or maybe the last financial year)
Set spending and saving goals (and maybe review your pricing too)
You could also create a ‘receipts’ folder to keep digital receipts with your practice expenses. 🗂
Making time to be ‘in your books’ every month will help you reach your income goals better than anything else.
Total your income for each month
List your outgoings for each month
Ask yourself where you can increase your earnings, and where you can decrease your spending
Then you can decide whether you have enough to pay yourself more, invest in a course, purchase new software etc.
Here are some finance tips that homeopaths who’ve taken courses with me told me they found useful:
Send invoices routinely, and itemise everything: consultations, postage, remedies etc. (one reason I love using Timely as my booking system is that it makes sending invoices easy to do)
Review your client fees annually and have an ‘hourly rate’ that you multiply or divide to get your consultation fee.
Find ways to use your money to benefit your clients - e.g. a booking system makes life easier for them! Don’t see it as a personal ‘luxury’ you can’t justify.
Avoid monthly payments if possible - pay for subscriptions annually and save money.
Keep a close eye on your outgoings and spend no more than 30% of your income on necessary overheads, whether it be books, remedies, courses, supervision, insurance etc.
Put aside 20% for holidays/pension/tax etc. and be disciplined about it.
If you are already paying tax you may want to set up a monthly Direct Debit through HMRC.
Aim to pay yourself 50% of your income, minimum, and more if possible.
I recommend a business bank account - mine is with Starling, a brilliant App-based UK bank.
Set a date for a ‘Finances Day’.
Then you can keep your finances up-to-date going forward. ✅
One more tip, work with an accountant to review your accounts and submit them to HMRC on your behalf. They will spot any oversights and are guaranteed to save you money.
You may want to join Radiant Business School if you’d like to spend more time on this topic! (We still have a couple of sessions happening in May, so it’s not too late!)
Thank you for reading.
I hope you feel inspired to be more on top of your practice finances.
Tracy 👩🏼💻
P.S. Today is the last day for early bird discount on my webinar on Miasms and Nosodes for Modern Homeopaths. Join live or watch on replay. A full set of notes is provided.