Bookkeeping, Taxes, and Becoming an S-Corp with Emily Bowie | GP 323

private practice finances, S-Corp election deadline, S-Corp for therapists, therapist bookkeeping, therapist tax strategies, therapy business accounting

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If you don’t truly know your numbers, how well do you really understand your business? Why do so many practitioners avoid their finances when clarity is what builds security? When is the right time to outsource bookkeeping and consider an S-Corp transition?

In this podcast episode, Brandon Shurn speaks about bookkeeping, taxes, and becoming an S-Corp with Emily Bowie.

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Meet Emily Bowie

A photo of Emily Bowie is featured. She is a financial advisor and co-founder of Thorne Advisors, where she specializes in helping therapists and private practice owners gain clarity and control over their finances. With a focus on bookkeeping, tax strategy, and S-Corp transitions, she supports clinicians in moving from financial avoidance to confident, data-driven decision-making. Emily is feature on Grow a Group, a therapist podcast.

In This Podcast

Common financial pitfalls
Don’t fall into avoidance; be proactive for success
The next step to take
Transitioning to S-Corp
Key takeaway for listeners

Common financial pitfalls

Emily shares a few common pitfalls that practitioners can get stuck in when it comes to solo and group practice. One of the main ones she discusses is this imbalance: working only in the business instead of also on the business.

Therapists may be spending far more of their time seeing clients and completing notes, which, while being crucial parts of the therapy process, are only one piece of the puzzle. The practice itself, as a new business, needs your attention too.

They’re so busy being in their business and doing their business that they’re never working on their business, and so I will always ask people, “How much revenue do you make?” And I can tell by their hesitation and/ or how they deliver it if they actually know, or they kind of, sort of know … and if you kind of, sort of know, you don’t actually know! (Emily Bowie)

As Emily explains, a very clear way of figuring out how much time a practitioner spends on their business is how aware they are of its financial state.

If you know exactly how much your practice brings in, you are likely doing a good job keeping track of the business, both inside of seeing clients and outside on the practice’s maintenance.

Don’t fall into avoidance; be proactive for success

Of course, taking full stock of your practice’s financial situation is stressful. For seasoned practice owners and therapists, sometimes directly dealing with the numbers can bring up a lot of fear, uncertainty, and stress.

A common human response is to avoid dealing with that stress as an attempt to help you feel calm, but we know that it’s not a long-term (or even a short-term) solution. The best way to beat the stress is to get the help you need, take a deep breath, and jump in!

I think it’s so natural to avoid … When it comes to finances, our brain is wired to make us feel safe, and so sometimes avoidance feels safer than dealing with the actuality of what it is, but the one thing I do know is true is you do build that security the more you know, and the more you can put your finger on [the finances]. (Emily Bowie)

Unironically, really facing your finances will give you a sense of security in knowing precisely what is happening within your business.

Then, you can take that information and make proactive, positive, and constructive decisions that help push the needle forward.

The next step to take

Emily’s advice is to outsource your bookkeeping.

As soon as it’s within your budget, hire someone to take care of the numbers, because it takes the stress off your shoulders while also helping keep you on track, too!

If there’s one thing you outsource … it’s the bookkeeping because they can keep you straight with your finances if you can’t keep yourself straight with the finances! (Emily Bowie)

However, to know when you’re to make that S-Corp transition is knowing where and what your bottom line is, and working with a bookkeeper will help you figure that out.

When you become an S-Corp, you kind of start to flip the switch on to different levers you can pull so that you can actually save … Even just making that selection is going to save you tremendously in taxes. (Emily Bowie)

Transitioning to S-Corp

March 16th is the deadline to make the transition for the current year. However, you can do a late election, and in that case, Emily recommends that you work with someone to make that change.

Secondly, get a bookkeeper as soon as possible. The later it gets in the year, the more that the bookkeeper has to clean up all the previous months, which means the higher their bill for the work!

Key takeaway for listeners

Feel comfortable and confident in outsourcing your bookkeeping so that you can know your numbers well. This data will give you the confidence to make informed decisions, and that’s what your business needs from you to thrive.

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Meet Prof. Brandon Shurn

Brandon Shurn, Ph.D., LCPC, LMHC, AFC®, NCC, is a licensed clinical professional counselor and the founder of EmPower Me Holistic Counseling, a fully virtual Maryland-based practice. He’s also a full-time professor in Seattle University’s online Clinical Mental Health Counseling program. With extensive experience launching and directing university training clinics, Brandon now focuses on helping therapists design and grow impactful, sustainable practices. Outside of his work, he enjoys fitness, yoga, Wing Chun, golf, reading, and spending time with his family and dogs.

Visit Empower Me Counseling, and connect with Brandon on Instagram and LinkedIn.

Email him at: [email protected]

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Bookkeeping, Taxes, and Becoming an S-Corp with Emily Bowie | GP 323

Podcast Sponsor: POP Consulting

Meet Emily Bowie