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Billing Considerations

Cash flow can easily be the bane of private practice. Your accounts receivables can be thousands of dollars while you are struggling to pay rent because the cash has not came in yet. This is especially true with private insurance companies that can take several months to pay. Be sure that you understand billing criteria, forms and timelines clearly if you are doing your own billing. Various software programs can integrate your notes, treatment plans and billing. You can also employ a business platform service or private mental health billing company. Whichever you choose, cash will need to be flowing as freely as possible into the coffers. Here are some tips as you set out to collect money for services Carefully read the contracts offered by the insurance companies and EAPs before signing up.  Counter with an offer addressing any concerns. You may be able to negotiate higher reimbursement rate.  Understand the specific pros and cons about signing up as in network vs o...
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Ongoing Advertising for Small Practices

Marketing is an essential part of your practice. Consistently getting your business' name and expertise into the community increases the clients that "self refer" to you. Word of mouth advertising is an excellent way to begin. Contact your professional and personal contacts at let them know you are accepting referrals. Let current clients know of your appreciation for new referrals and possibly offer $10.00 off their bill for each new referral. Listed below are additional avenues to consider in marketing your private practice. Online Directory Listing Business Facebook Page Instagram Page Google AdWords Website (pay for SEO upgrade) Sponsor local events- bowling team, little league team Offer trainings to professional entities such as State workers Offer a free workshop once a month to the community
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Federal Tax Payments

Federal taxes as a self employed individual and for a business operate differently then other employment arrangements. You will pay your typical percentage of tax withholding plus an additional self employment tax. Self employment tax is currently about 15%.  The rate consists of two parts:  12%  for social security (old-age, survivors, and disability insurance) and  3%  for Medicare (hospital insurance). Essentially self employment tax is the amount a company pays on your behalf when you work for them. Since you are now self employed, you are responsible for both chunks of the payment. Depending on how you established your practice as a legal entity alters how the business is taxed.   Remember that the legislators of the country reform tax law often and your tax liability may change with new laws. Consider having an CPA in your community complete your taxes rather than an online service. This can maximize your deductions....
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