Episode 90: The ABCs of Accounting (Part I)

Welcome to the Therapy For Your Money School of Accounting! Today, Julie's going over key financial terms that are vital to running a successful business.

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EPISODE HIGHLIGHTS

• A = Asset
  • Any resource owned or controlled by a business
• B = Burn Rate
  • Measures your outgoing cash flow based on the money your practice typically spends each month
• C = Cash Accounting
  • Method of accounting that only reflects transactions at the time the payment is actually received or made (versus accrual accounting method)
• D = Double-Entry Bookkeeping
  • When each transaction has both a debit and a credit - this ensures accuracy, and balances your financial statement at all times
• E = Expenses
  • Any cost associated with running your practice (includes a variety of things - payroll, office supplies, technology costs, rent/utilities, taxes, etc.)
• F = Fiscal Year
  • The timeline that you use to budget your finances
• G = General Ledger
  • Where every single transaction is accounted for in order to prepare budgets, taxes, audits, etc.

LINKS & RESOURCES
GreenOak Accounting - www.GreenOakAccounting.com
Therapy For Your Money Podcast - www.TherapyForYourMoney.com
Profit First for Therapists - www.ProfitFirstForTherapists.com