Every Practice Deserves to be Profitable with Julie Herres | STP20

In this episode of "Scaling Therapy Practice", James Marland interviews Julie Herres, the founder of Green Oak Accounting and the author of "Profit First for Therapists". Julie is an expert in profit first who has helped hundreds of private practice owners gain financial freedom.

Links and Resources for Therapists

• Email James to talk about questions or problems about scaling: james@coursecreationstudio.com

• PsychMaven - Find more resources here

• Builder Type Assessment - grow without the grind 

• Profit First For Therapists Facebook Group
• Julie Herres on Instagram: @julie.herres
• Therapy for Your Money Podcast - check out their free Return on Investment tool
• Profit First for Therapist Pre-order: Free Profit First Assessment
• OneTab Chrome Extension
• Watch the Video on YouTube
• Green Oak Accounting

The Profit-First System for Therapists

According to Julie, the Profit First system is a simple but effective way of managing your finances. It involves separating your money into multiple small plates or bank accounts. Each account is allocated for a specific purpose, such as taxes, operating expenses, and profit.

“Profit First is not just a block of money in the bank account, but real numbers on taxes, profit, and operation expenses,” says James.

By following the Profit First system, you ensure that your practice always remains profitable. The system helps you to be disciplined with your finances and to make informed decisions based on real data.

An Introduction to the Profit First System

According to the book Profit First, here are the steps for implementing a Profit First system for a small business:

1. Set up multiple bank accounts: Open multiple bank accounts and label them according to their purposes, such as Income, Profit, Owner's Pay, Taxes, and Operating Expenses.

2. Allocate funds to each account: After each deposit, allocate a percentage of that money to each account based on predetermined targets. For example, allocate 5% of the total to Profit, 50% to Operating Expenses, 15% to Taxes, and so on.

3. Use the Profit account: Use the Profit account to pay yourself first and reward yourself for your hard work. Take a portion of the money in the Profit account and use it for something that brings you joy or invest it back into the business.

4. Adjust the allocation percentages: After a few months, adjust the allocation percentages based on your actual revenue and expenses to make sure that you are on track to meet your goals.

5. Monitor your finances: Regularly monitor your bank accounts and make adjustments as needed. Use financial reports and cash flow projections to make informed decisions about your business.

By following these steps, small business owners can gain a better understanding of their finances and take control of their profitability. Implementing a Profit First system can help them avoid the common pitfalls of poor cash flow management and set them on a path toward financial success.

The Importance of Small Plates for Your Therapy Business

One of the key concepts of