The dreams of owning your own business are layered with the benefits of doing so: making your own schedule, doing something you love, being your own boss, leaving the time clock and name badge to the annals of history. You may not, however, be prepared for the required work that must be done as owner or co-owner of a business.
If you purposely or accidentally neglect massage therapy bookkeeping requirements, you may have to pay for it later. It is better to be prepared, organized, and aligned with both state and federal requirements for entrepreneurs so that you can focus even more of your energies on the mission of your massage therapy business.
Tips for Massage Therapy Bookkeeping and Tax Requirements as an Independent Massage Therapist
- Get educated, knowledgeable, and licensed in the field. There are great massage therapy programs available to you wherever you are located. To be in compliance in most states, you will have to provide licensure. A good massage therapy program will also give instruction about how to run a business, how to file with the state revenue departments and the IRS, and how to keep the paperwork under control.
- Taxes – Taxes can be the bane of any business owner, yet they are mandatory. It is best to have a system that works for you. While some massage therapists may choose to do their own personal taxes or quarterly business taxes, many also contract with a licensed tax professional. There are books and online courses available for learning the process of taxation, but as other therapists therapists for advice.
- Keep accurate and precise financial records – The key to efficiency in massage therapy bookkeeping is routine. Figure out a system that works for you on a daily basis and then keep it. Having accurate, precise records of your business expenses, appointments/sessions, and income will save you both time and money when the records are needed. Whether you are using a computer-based system, cloud-based system, or file folder system, keep it organized. Poor record keeping inevitably leads to lost time, and as a small business owner, time has financial value.
- Keep thorough records – No one ever wants to be a part of a legal suit, but it can happen. Medical and health services professionals are often called as trusted witnesses for a variety of legal suits. When this happens, you want to have records that explains the specific reasons each patient was treated, the ailment or reason for their making the appointment, and the level of comfort after.
- Estimate monthly expenses – One of the basic demands of owning a business is estimating your projected expenses so that you can create a reasonable, reliable budget. Many business owners estimate both monthly and annually, adjusting based upon need.
- Familiarize yourself with accounting software – If you do decide to save on the cost of hiring a tax professional, you will need to look at various accounting software packages that keep your massage therapy bookkeeping accurate and documented. The good news is that you have many options. QuickBooks, Sage, and FreshBooks are three of the leaders, but there are others that may work best for you, depending on your need and level of detail.
You’re going into business, in part, for financial reasons. You want your own work to result in your own profit. To make this dream real, you have to be concerned with implementing organization and accuracy in your massage therapy bookkeeping from the first time you turn the sign in the window to say “We’re Open.”