Episode 10: You Don't Have To Be Afraid Of Your Bookkeeping with Andrea Rotondo
Financial insights and practices that empower women and mom therapists to take control of their business finances.
In Episode 10, I had the pleasure of sharing an insightful conversation with Andrea Rotondo, a military spouse and owner of Liquid Sense, a bookkeeping business dedicated to empowering women business owners. In this blog post, I’ll expand on some of the key takeaways from our discussion to help you manage your finances effectively and build your dream private practice.
Set a Budget for Charitable Contributions
One of the first points Andrea emphasized was the importance of setting a budget for charitable contributions. As therapists, we are often inclined to give back and support causes close to our hearts. Andrea suggests dedicating a specific amount in your budget for these contributions and monitoring it through financial reports. This approach ensures that your generosity is sustainable and that it doesn’t negatively impact your business finances. Remember, even small contributions can make a significant difference.
Separate Bank Accounts: A Must-Do
Andrea and I both stressed the necessity of maintaining separate bank accounts for personal and business use. It’s not just about organization; it’s about clarity and ease when tracking your finances. Even if you’re not officially registered as a business, having dedicated accounts for your business transactions helps simplify financial tracking. Plus, it makes tax time less stressful and ensures that you have accurate records for all financial matters.
Choose the Right Accounting Software
Selecting the right accounting software can be daunting, but it is crucial. Andrea recommends adaptable software that can grow with your business, avoiding costly and labor-intensive switches later on. For therapists, some excellent options include WAVE (free), QuickBooks Online (paid), and Xero. However, Andrea and I advise against QuickBooks Self-Employed due to its limitations.
Importance of Financial Awareness
Understanding your financial numbers is key to removing uncertainty and making informed decisions. It’s easy to be overwhelmed by finances, especially if you don’t consider yourself a “math person.” But remember, being good with money doesn’t necessarily mean being a math whiz. With supportive tools like bookkeeping software, you can demystify your finances and take control of your business's financial health.
Network for Business Growth
Building a successful private practice isn’t just about managing your finances—networking plays a pivotal role too. I shared a guide on networking for business development during our discussion, emphasizing the importance of building relationships that can lead to referrals. Connecting with peers and potential clients can significantly boost your practice, making those financial goals even more achievable.
Fear of Financial Mistakes
Many of us hesitate to dive into financial systems due to the fear of making mistakes—especially with the IRS watching over our shoulders. But here’s the truth: the IRS is unlikely to take immediate action over minor accounting errors. Usually, it starts with a letter, not dramatic penalties. The key is to get started, even if your system isn’t perfect yet. Organizing your finances through accounting software helps streamline processes and ensures you’re prepared for any potential audits.
Customizable Reporting and Categories
Creating specific categories in your accounting system gives detailed insights, helping you make informed decisions about spending and investment. Using a "chart of accounts," you can manage and understand different income and expense streams specific to your business needs. This level of organization provides the knowledge necessary to make data-driven decisions, allowing you to fine-tune your strategies and optimize your practice.
Financial Knowledge as Power
Finally, remember that financial organization isn’t about making your life more complicated; it’s about empowering yourself. With a well-organized system, you gain the knowledge to make data-driven decisions and adjust your business strategies. This awareness helps in better budgeting, resource management, and ultimately, achieving long-term profitability.
Implementing these practices might seem intimidating at first, but taking it step-by-step will make a world of difference. Whether you’re just starting out or looking to refine your existing financial systems, the guidance Andrea provided is invaluable. Financial clarity and health are within your reach, and once you achieve them, your dream private practice becomes that much more attainable.
Thanks for joining me on this journey of empowerment and financial wisdom. Be sure to subscribe to the podcast, share this episode, and join our Facebook community for ongoing support. Until next time, keep empowering yourselves and others.
Transcript for Episode 10
[00:00:00] Ashley Comegys: You are listening to the Raised to Empower podcast. I'm your host, Ashley Comegys, a licensed clinical social worker with a multi-state online therapy practice. I have a passion for empowering women and mom therapists to break free of the fear, overwhelm, and oppressive systems that hold them back from taking action and building the private practice of their dreams.
[00:00:23] My goal is for you to boldly believe in yourself as a clinician and business owner. If you're looking for a place to learn, practice, building, strategy and skill, while also claiming your own power as a woman and a therapist, then you are in the right place. Welcome to the show. Welcome to this week's episode of the Raised Empower Podcast.
[00:00:45] I am really excited to have our guest with me today. We have Andrea Rotondo with us. She and I have gotten to know each other. Casually over the past few months have some commonality in being spouses [00:01:00] of military service members and, uh, the work that we do. And she's someone that I was so excited to get on the podcast.
[00:01:08] So let me tell you a little bit about her as we get ready to jump into our conversation. After spending a few years at home with her little ones, as a military family, Andrea was ready to start something new. Her background in psychology, volunteer work, and firsthand experience with frustrating accounting processes filled her with desire to help others in a meaningful way by merging both world numbers and emotions.
[00:01:33] This is when Liquid Sense was born through her bookkeeping firm. She supports women business owners who want to build wealth while helping others. Andrea, thank you so much for being here and welcome to the show.
[00:01:46] Andrea Rotondo: Thank you for having me. It's really exciting to be here with you. So
[00:01:50] Ashley Comegys: for those who don't know you help me and and listeners to understand, how did you get into this work?
[00:01:57] How did you get to where you are
[00:01:58] Andrea Rotondo: today? [00:02:00] Like you mentioned, we're both spouses of service members. My husband was in the Coast Guard at that time when the transition back to civilian life for him. Um, We were just thinking like, should we do it? Should we not? Should he stay? Should we just, you know, stay for the long run, which was our initial plan, by the way.
[00:02:22] And then at around the five year mark, we're like, okay, we have to make a decision because two years it's gonna fly by and we have to make a choice whether you sign again or not. For those that are in that world. You know what I'm talking about, right? And I don't know if it's the same for you, but my husband was like, if I make it to 10, I'm just gonna say the 20, right?
[00:02:45] And I was like, but that makes no sense. It's 10 other years. Why can we just take the 10 and then get out? He was like, no, if I can't make it to the 10, we're leaving. So I was like, okay, this is the time to choose because if we make it to 10, there is no turning. [00:03:00] So we decided that for our family it was best for him to just not renew his contract and we were gonna move back home.
[00:03:07] But since my experience to that, like throughout the whole time that he was in a Coast Guard, was finishing my degree in psychology, trying to get jobs in anything like, uh, right. Counseling office or anything regarding a, you know, in that world, Nothing really worked out except for one thing, and then I had to leave that job because my of my pregnancy and I had some issues.
[00:03:29] So after that, I just stayed home with my kids and I had no idea what I was gonna do. One of my good friends told me about bookkeeping and I was like, this sounds like me. I didn't even know this word bookkeeping until right now, but it totally sounds like me. I had actually worked with QuickBooks before my husband joined the military for maybe seven years.
[00:03:52] Without even knowing, like the term bookkeeping, I was just, you know, doing data entry. I always consider it myself as like behind the scenes [00:04:00] kind of person. Like, yeah, I will make this show run. Like I'll make everything happen. I'll just be behind the scenes. And because of those two things I was like, I'm gonna give this a shot.
[00:04:12] I went through the training. Like I said, we started like two years ahead of time. So by the time that we were gonna be home, him out of the military. I would already have like a solid foundation and at least the plan was to have some kind of frequency. Like I knew what I, how much money I was gonna make every month.
[00:04:32] So that's kind of how it started, kind of randomly, but at the same time, it didn't feel random. It just felt like me, like and my abilities and what I like to do. I felt like it also included helping people because I was always. Passionate about that my actions would have impact with somebody else, not just me with individuals, not just with numbers that I, I don't even know who they are.
[00:04:59] So it just [00:05:00] felt like, It was the right choice for me and it's been, I don't even know how many years, like since I actually launched, my business is gonna be like almost three. Yeah. And it's been great. It's been more than I thought it was gonna be. I never even consider like podcasts, for example, like what we're doing right now.
[00:05:17] I was just planning on like doing the work for somebody, having great conversations with them, and that was it. And it just grew to thankfully be something that I have different conversations with different people, like workshops and things like that, which I have loved. I think that's one of my favorite things is to talk to others in a way that.
[00:05:41] They can leave that conversation feeling that they really can apply something to their bookkeeping, to their business, which ultimately applies also to their personal finances. So it's just this big cycle of information applying, getting better, growing your business, feeling better about the way that you're [00:06:00] managing your finances.
[00:06:01] Just a great cycle to be part
[00:06:04] Ashley Comegys: of. Well, and I. Just listening to your passion about it and you talking about, you know, being able to help people organize their systems or think through their numbers. Because I feel like money is one of those, quote unquote taboo soundchecks, and we all have some kind of money story and it can be really scary.
[00:06:25] And I think a lot of times in conversations I've had with people, That can be one of the things that keeps them from maybe starting a business, starting their practice because, well, how am I gonna do this? Or what if I do it wrong, or I just don't know anything about it because they don't teach you about that stuff, right?
[00:06:46] When you're taking those kinds of classes. So I think your approach is just so relatable and that. About helping to empower others, right? You can feel confident about the systems and the bookkeeping that [00:07:00] you have because you do need to know your numbers. You need do need to know, right. What am I bringing
[00:07:04] Andrea Rotondo: in?
[00:07:06] Right? Right, exactly. And there's this misconception that says that because you're not good at math, you are just not good with money. And because you rarely took, like you took very minimal math classes. Then that equals to, you're not good at handling your money, you're not gonna be able to make it, and that is not the case.
[00:07:29] That's very right. It's very hard for us to take that out of our minds because if somebody was actually not good at math and you were constantly getting bad grades and you were constantly struggling with that, and maybe you were going with a tutor after school, or your parents were not necessarily. The kindness when it came, you know, when it come to this.
[00:07:50] Sure. So it is just all of these things unconsciously will show up and I think that that is one of the biggest [00:08:00] roadblocks that we have to go o like just face it, and this down is gonna be your strength, not mine. And just, okay, let's get to a place where I don't need to be good at math. And thank, thankfully, for example, it's the software that does the.
[00:08:17] Right, so you don't even have to do the math. So then now, now that we got over that, okay, now let's talk about money, which that's a whole different set of skills, right? And sure math is involved, but it's not. It's not the main thing. So finally, getting to the point of where you're going to address your numbers.
[00:08:38] It's really going to take off that veil of like not knowing what's happening, and the reality could be really good and the reality could also be really scary or quote unquote bad, or you know, you're in the negative instead of in the positive, right, and you have more debt. But the issue is not what the numbers are.
[00:08:59] The issue [00:09:00] is not knowing. Because then you don't know what to do. So once you come face to face with those numbers, then you can slowly at your own pace, sometimes we have the, the, the privilege of going at our own pace. Sometimes we have to go a little bit faster and make quicker actions, um, to get to a better place.
[00:09:19] But at least you know what the next step is going to be. Right? And that is just assuming that it's just you, you know. But once you have, for example, you inc. Family. You incorporate kids, you incorporate parents perhaps that you're helping or, uh, maybe they're living with you. There are so many other factors that do bring that pressure over you that sure, at the end of the day, it's just so much better on yourself for your mental health and for the benefit of everybody else as well, for you to know what's happening with your finance.
[00:09:55] Ashley Comegys: No, I like if someone's like, wait, what is, what is this math equation? I'm like, I went to [00:10:00] school for social work. I don't do math right? Like that's the joke. But I always feel more empowered when I know what's going on with my finances in my business. That when I'm able to look at, okay, maybe there's not as much coming in as I anticipated this month that doesn't feel good, but then I can make decisions.
[00:10:22] Based off of those numbers or like, okay, my family has this thing going on, how do I plan for that? How do I anticipate that? And it can be scary to look at those numbers, especially if you're not sure what you're doing or how your, what your system is. But, As scary as it may feel, it's going to help guide you and direct you in what are the best choices or the best decisions for you to make.
[00:10:49] Whether that means increasing your rate or dropping a certain insurance panel, or saving more for something, purchasing something that's going to help save [00:11:00] time, whatever the thing is. Yes, it can feel scary, especially if you're not sure what you're doing at first, but once you get into your numbers, it is just so much more enlightening because you're making informed decisions.
[00:11:14] Andrea Rotondo: Right, right. And it also puts, puts you in a position of, in a way, pressured. To make a choice about what system is going to work for you. Yeah, because that's, I think, one of the biggest roadblocks is to identify and implement the system that is going to help you get there. Because everybody talks about you have to know your numbers and you have to know how much money you're making and knowing how much money you're making is really not that hard to find that answer, especially if you're using an E H R for example.
[00:11:49] It's all gonna be there, but it's tracking the expenses and in a way that I makes sense to you with the categories that make sense to you in a way that it's automated. That is [00:12:00] a part that people are like, I just don't know how to do that. And because of that, then they're missing out on their results.
[00:12:06] It's not that people necessarily don't want their results of knowing. Sure. Generally speaking, people do want to know their numbers. And they know that it feels uncomfortable and they, it feels scary, but they would like to know. It's usually that beginning part of. Well, everybody talks about QuickBooks, but there's also this other, uh, for example, business coach that is one of their things is using this specific spreadsheet or, um, using, uh, software for personal finances.
[00:12:37] Can I just use that one? Yeah. Or I can just do it on my notepad because it's just my finance, especially as a solo practice owner, it, it, things are very simple for the most. So I'm just gonna keep track of those things here. But then as you grow or as you continue to give your [00:13:00] attention to different tasks or areas, for example, marketing, if you are wanting to grow your practice, you're gonna give attention to that.
[00:13:06] Then usually this side of your practice is going to be like, I'll just do it another day. Because your business is running anyways. Things are flowing anyways. This is not stopping you from seeing a client, but on the other side of that, it could potentially affect your profitability because you don't know what's happening.
[00:13:29] So it's kind of two sides of it that go hand in hand that unless you really get into it, you won't really know how it feels to have those.
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[00:14:30] Andrea Rotondo: Hey.
[00:14:34] Ashley Comegys: So one of the things I've seen, and I personally have done this in the past, I've noticed when I'm talking with women who have started their practice, it may be that like, okay, I started this kind of just as a side thing, or I've fully started it, but.
[00:14:53] A lot of times figuring out an accounting system, I think is not necessarily on the top of people's list, right? [00:15:00] It's, let me get my e h R, let me figure out being able to see clients. Let me market and I'll figure out the money stuff later. And so then they kind of get into their practice. Maybe it's. A couple months in, maybe it's a year in, and they're going, oh my goodness, I didn't even think about that.
[00:15:15] I have to have money set aside for taxes or like a system for accounting and that kind of thing. So if somebody is kind of in, in that situation where maybe they have started their practice, whether it's two weeks ago, two months ago, Two years ago, and now all of a sudden they're like, wait a second. I need to go back, or I need to start something.
[00:15:38] Do you have any suggestions on using a system, even if they've already started doing this work, and maybe it's more tied currently into their personal finances, what they can do to create a system?
[00:15:52] Andrea Rotondo: Yes. The very first thing I would say is to have separate accounts, bank accounts, [00:16:00] credit cards. Usually if you have an E H R, it's gonna be tied to, for example, Stripe or something like that, or square.
[00:16:07] So usually those are not commingled or mixed with your personal finances. But generally speaking, the best thing that you can do is just keep absolutely everything separate. And let's say that you are not really keeping track of things, it's gonna be much, much easier to. Add up things really quickly when you have your statement or the bank information in front of you to add those things, when it's just purely business transactions, instead of having to go through, usually your personal accounts have five times the amount of transactions, right?
[00:16:45] So you have to go through it and it's like, mm, I want to target, but did I buy. Diapers for my kids, or did I buy a notepad for my desk? Sure. So once you have those separated, [00:17:00] it's gonna be much easier to add things up for you to glance at it and kind of understands things better. And also because your actual statement.
[00:17:10] Adds up things for you, and it's gonna tell you how much money came in and how much money came out. Not necessarily by categories, but just the totals. So just looking at that, you can already have a quick, okay, you know, I made $300, I made $5,000. Whatever number it is you are, you're gonna have it. That is kind of like what you can do right now and then depending, I would say on your goals as well, like do you want to keep this as a five clients per week kind of thing?
[00:17:45] Very minimal. You might not really need this full blown accounting software that is gonna do, you know, that is gonna track inventory. It's gonna do a million things for you. [00:18:00] If you could get away with using something that is free, that is for business, I would say the best thing is find something that generates financial reports for you.
[00:18:09] As long as the information that is being input is correct, you can look at, again, your profit. You can look at, I don't wanna complicate things, but for example, the saving of cash flows will tell you like, all the money moved that month, like how much money came in and left. Combining everything. So the ability to pull those reports, Will help you understand things a little bit better once you have a process for that.
[00:18:34] And also, if you are working with a tax accountant, for example, and at the end of the year or every quarter they tell you, give me your number so that I can tell you how much money to pay for estimated taxes. Again, things are already there, and it's also going to, depending on who they are and how their pricing structure is, most likely they're gonna bill you differently if they have to figure out the math for you or you're just telling them and then they figure out the math for you.
[00:18:59] [00:19:00] That's another misconception that people have regarding estimated taxes, that it's only including your practice numbers. They will most likely have to look. Your whole financial picture, including if there's anybody else. For example, if your spouse works and they are getting their taxes taken out, they can also look at that.
[00:19:21] So they can go really, really deep into it, or they can just tell you a very general amount. So if
[00:19:29] Ashley Comegys: I hear you basically, First things first. Get separate accounts. Yes. Even if you already started, some of it's in the personal, go ahead, get that separate checking account, separate credit card, and then just get everything deposited into that checking account, because then you have everything in one place and you're just starting to track everything from there.
[00:19:50] It's not too late. Yes.
[00:19:52] Andrea Rotondo: Yes. It's never too late. As much as it feels very overwhelming or confused, it's never too late. That would be the very first step to. [00:20:00]
[00:20:00] Ashley Comegys: I know you mentioned some different softwares. I know that there's software as an option or a spreadsheet as an option. If someone is just starting out, what would your recommendation be for them to track and use some kind of system?
[00:20:14] Andrea Rotondo: It's very hard for me to tell you, like, use this because it really depends on your goals. And if you want to make this grow as much as possible, I would prefer for you to have all of your information in one place. So if that means that you are delaying the process, perhaps, of starting that software until you feel like you can afford it, go with one that can grow with you.
[00:20:40] So if your, your intention is to grow your practice and to make this your main source of income, Or you and your spouses, but this is your way of providing for your family. I would say choose something that is going to be able to grow with you because there are other softwares that are really good, for [00:21:00] example, for your now.
[00:21:01] Mm-hmm. And that you can connect things to like your bank and it's going to pull your transactions. But once you get to a place where you're making more money, and perhaps you now, Have different offer, or now you have employees or contractors or you took a loan and you start bringing different layers to your finances.
[00:21:24] It's just not going to be able to serve you and provide the numbers that you need and the best way possible. So then at that point, you're probably going to be forced to move to a different software, and what that happens is your information that was in here stays there. And your new software starts in that new year.
[00:21:47] Your other option is also to bring all of that data to the new software. But that's gonna be, it's gonna take time. A lot of work. If it's gonna be a lot of work. And if you hire somebody, it's gonna cost a lot of money. [00:22:00] So that's why when I'm looking at the future and in the long run, I'm trying to avoid that.
[00:22:05] I'm trying to avoid you being stuck with information in many different places. We just wanna combine it in one. If you think, now, I know that many people start and they don't necessarily know where they wanna go for an option that is free, and that is for businesses. There's an software called Wave. And that one will connect to your accounts.
[00:22:29] It will bring transactions automatically. You can categorize the chart of accounts, and I think that's one of the biggest benefits as well. Something that you can categorize the chart of accounts. So I would say start there perhaps. Ideally, you wanna start in a business software, most likely that you are paying for it because, Not free.
[00:22:51] And typically the things that are, you know, you're paying for it, are gonna be better. So something like QuickBooks Online, not QuickBooks Self-employed, [00:23:00] I would never recommend to use QuickBooks Self-Employed. But QuickBooks Online is ideally where you want to start.
[00:23:07] Ashley Comegys: Yeah. Well, and I think for people, just to keep in mind, like you said, if you're like, I don't feel like I can put money out for something right now.
[00:23:17] But just know that, okay, like I'm going to have to upgrade somehow eventually, if it gets to that point where this no longer serves me and just know that, okay, I'm going to have work on the f the, you know, the front end of building out that kind of software for when I transition. I actually had a similar thing, so I.
[00:23:38] When I started my solo practice, I was in QuickBook, self-employed, and it, you know, I used it for a couple years and several years in I realized it's not giving me really what I need category wise or to be able to really track things in certain reports. And so I did then change over to. QuickBooks [00:24:00] online, which has been great and I definitely recommend as well.
[00:24:05] And it was one of those things where like, okay, I'm not gonna transition everything over, but I decided to start at the first of the year for that year in this new QuickBooks and just download it. Every report that I could have access to from the self-employed wine before I closed that down. And so, yeah, it was def definitely work.
[00:24:25] On the front end, getting it up. And so I just kind of had to prepare myself for that. Like, okay, I'm realizing that maybe that wasn't the best one to go with at the time and now I'm upgrading to this one and I've just gotta buckle up and just kind of put my nose to the grindstone for a little bit, and.
[00:24:43] Now I love it. It's made it so much easier than even the self-employed to be able to track everything.
[00:24:49] Andrea Rotondo: Absolutely. Yeah. Self-employed. I don't recommend it to anybody. And it's funny because it's the same company and I do work with QuickBook online and I do like it. Um, I think it's a great choice for [00:25:00] therapists, but like you said, You have to make the decision to either bring all of the information or you don't, and ultimately, it's up to you.
[00:25:08] I don't think that there's a right or wrong choice. I don't think that in your case, like, oh, well, you made the wrong choice. Ideally, you wanna have all the information in one place, and I'm sure that you want it to have that information there, but sometimes you just can't have that. So if you can avoid that, go with, uh, QuickBooks Online or Zero is another really good software.
[00:25:30] It is a full accounting software as well, just like, uh, QuickBooks. They all have their strength. So I can't pick one specifically, like I think you should use this one or this one. I think zero is definitely a great choice as well for therapists in what they need. And it's also cheaper and you can also upgrade, which is another thing that you wanna look for, for something that you can upgrade.
[00:25:51] But yeah, you can start, if you wanna go the like the very, very cheap way, I would say go with Wave because that one is free and it's still a business accounting software. [00:26:00] And then you can eventually move to something if you were to see the need for.
[00:26:05] Ashley Comegys: I think a lot of times people are afraid to to start cause they're afraid of making a mistake.
[00:26:12] I see that, especially when it comes to money. I have felt that way at times too. Like, oh, like what if I do this wrong and. I think there's this idea that the i r S is just waiting for you to make this one little mistake. You're supposed to pay $50 and you pay 49, and then they're knocking on your door, right, to come and get you.
[00:26:31] And so then people are like, I'm too afraid to take the steps I need to, to do something, to have a system or to even start my business. Knowing that fear is a big thing and it's a real thing for a lot of people. What do you think is one of the misconceptions that people have or misunderstandings when it comes to having an accounting system or really having an understanding of their numbers?[00:27:00]
[00:27:02] I
[00:27:02] Andrea Rotondo: think that you have to back up a little bit and face the fact that if you are already in business, The accounting software, it's not really what is going to trigger the i r S to come knocking at your door. You are already moving your money. The fact that you're actually organizing things in your software.
[00:27:22] It's going to benefit you because in case the i r S actually comes knocking at your door, which they most likely won't, they'll probably send you a letter and then at that point, the best thing that you can do is reach out to one account, like a tax accountant that can help you with audits. Specifically the process.
[00:27:44] Although it could be long, it could be tedious. It's like, okay, what about this expense and what about. It's more of tasks and time consuming. It doesn't necessarily feel like somebody's gonna come knocking at your door, but I would [00:28:00] say the best way to do that, to feel that you are prepared. For that is to actually use that accounting software or any method that you're using to track your increment expenses to the best of your abilities.
[00:28:14] Because if you were to be requested for some kind of information, you can literally just grab it and send it, and there's no really. More that is being demanded from you because you already did all the work ahead of
[00:28:30] Ashley Comegys: time. I mean, I think the takeaways, the sooner you can get your head out of the sand and start a system, the easier it will be.
[00:28:40] If. There is something that comes up that you have to explain, right? The, the more we bury our head in the sand and ignore, like I just don't wanna have to face it, the harder it, it will be, but it's better to, on the front end, just start dealing with it. One thing that I've heard you mention, and I think for those [00:29:00] who may not be familiar with having an accounting system, you talked about categories.
[00:29:04] Can you explain that a little bit, what that means when it comes to our having an accounting system or a bookkeeping system?
[00:29:12] Andrea Rotondo: Yes. When you have your accounting software, most of them will give you the ability to change what is called your chart of accounts, and that's just like the fancy way of saying the categories for your income, the categories for your expenses.
[00:29:28] So your accounting is a whole big picture. It's not just your accounting. You have to take into consideration. How you're receiving payments, if you're receiving payments only through the E H r if you're receiving payments directly, uh, into your bank account, or if you have a checkout, uh, system in your website because you're also selling different things.
[00:29:50] So all of that comes into place as to how much detail we wanna see in your chart of accounts or in your accounting, uh, software. When it comes to [00:30:00] your income, sometimes having just one big category for your income, that is just therapy income will be enough because you can break down the different categories in your E H R, which that's mostly the case for therapists.
[00:30:14] You can just dump everything into one income account and then if you wanna see, for example, group therapy or versus individual or. Based on your contractors or your team members, you can just see that in your EHR without having to bring all of that data also into your accounting software. However, if you were to also sell a course or if you have a paid membership and that is coming from a different, uh, checkout system or merchant processor, that has nothing to do with your E H R, it's very easy to identify that in your bank feed.
[00:30:52] So you can add a different category for that in your chart of accounts and have therapy income and me. [00:31:00] Or podcast, you know? And that way when you look at your profit and loss, for example, you're gonna be able to see how much of those services and products are bringing in to your business. And based on that, you can kind of decide after X period of time that you have decided maybe you put this kind of like on trial.
[00:31:22] I'm gonna see if this offer, you know, is actually beneficial and I'm gonna look at it after six. So six months passed, you look at it per month, you can see how much money each one is bringing, and you can make a choice, like, should I give more attention to one of them versus the other because this one is clearly giving me more money, or this one is only giving me X amount of dollars, but I'm putting in so much hours into it, I'm paying contractors to build this for me.
[00:31:51] I'm spending X amount of money on software and this is a moment where I can decide do I wanna drop it or do I [00:32:00] want to continue trying it? Yeah, so there's no right or wrong question. It's just more information that you can have in a little bit more of a detailed way to, first of all, ask yourself questions about it.
[00:32:14] Think about the other areas that are moving around. And then hopefully make a plan. And then the same thing goes with your expenses. For example, you would, uh, like to know how much you're spending on contractors if you have a group practice. And at this moment you have contractors, not employees. You wanna know how much you're paying them versus other contractors that are perhaps your va uh, bookkeeper at that point.
[00:32:43] So because it's different, like the amount of. Uh, money that you're paying for those, it should give you different levels of information in a way. Sure. Um, or software versus office supplies, especially when you are, [00:33:00] uh, most of the time just conducting your practice virtually. It's important to know how much money you're spending in software and a lot of times those categories are so broad because of the IRS forms are so broad.
[00:33:15] That we don't necessarily break it down. So I like to add a little bit more detail in that aspect as well. I think it's important for you to know how much you're spending on physical things for your office. Sure. Versus monthly subscriptions for different kinds of software. Or if you have a physical office and you have to, uh, spend money on decorations.
[00:33:39] You're renovating or you have repairs and things like that. I would like to separate that again from your actual office supplies, from your software. So all of those different levels of categories will give you details that you need, and [00:34:00] because it's so unique to you. I think it's important for every, like when you are in that moment, like building up your accounting software, perhaps on your own, perhaps with somebody, that moment is very crucial because only you can decide, right, what is important for you to know.
[00:34:18] Other people might not really care what it they're spending in a office supplies versus software. They just wanna see it all together, and that's totally.
[00:34:27] Ashley Comegys: I think one of the things that is just like really striking me as I'm listening to you, and I don't think I've ever thought of accounting or having a system in this way, is just, it's a way for you to make informed decisions.
[00:34:39] It's a way for you to know I'm spending this amount on this. Thing or on this service, and it may not seem like that much, but if part of my business that I'm thinking that thing is supposed to be supporting is not actually bringing me in money. Right? Like if it's something that you have for a course, but you're not bringing in anything from that course for [00:35:00] whatever reason, is it in my best interest to continue paying for that thing or find a different way or do more to try to bring in income from that course?
[00:35:08] So I think. Knowledge is power. This is one of those ways for us to have real knowledge and make these decisions based off of not just, Hmm, I think I have a hunch, or I'm hoping this is the best thing, but nope, this is what the data is showing me and I, I need to make my choice based off
[00:35:29] Andrea Rotondo: of that. Right, right, exactly.
[00:35:33] Because many times we have, for example, a, a budget or an idea of how much money we wanna allocate to things, but it's, once you're spending money, it's just so much easier to just spend, you know, and swipe. We don't even have to physically swipe our cards anymore. Right? Or it's just so easy to spend. But once you have that report, you can even create categories for things that are perhaps important for you.[00:36:00]
[00:36:00] I think at least generally speaking, women in general are very generous. We like to share, we like to help others, so having a category for charitable contributions and every month I wanna. Give $50. I wanna give $500, whatever number it is that you want to incorporate in your spending to this nonprofit that does this, because this specific thing is important for me.
[00:36:31] Then if you are running your reports and you'll see that this specific category is in zero, you're like, oh, I totally forgot about it right now, next month I can do that. So it also helps you. Directing your money and places where you wanted to go. Yeah. Yeah.
[00:36:52] Ashley Comegys: Andrea, anything else that you think before we wrap up that would be just really important for people to take away from today?[00:37:00]
[00:37:00] Andrea Rotondo: Yes. I think that, like we said in the beginning, keeping different or separate bank accounts from your personal accounts is really important. Whether you have an intellectual business creator like an L L C creator or not, if it's just you under your name, just open a separate personal bank account and start using that for quote unquote business purposes.
[00:37:23] Or if you already have a business, open up a business account, keeping everything separate. And one last thing is when it comes to accounting softwares, generally speaking, they are not HIPAA compliant. So don't use accounting softwares to bill your clients, to invoice them, to include your list of clients.
[00:37:48] You know, let's not use QuickBooks or Zero or Wave for any of that. That can live and should live only in your E H R.
[00:37:57] Ashley Comegys: Yeah. Yeah. Cause it's all HIPAA compliant [00:38:00] there. If someone wanted to reach out to you and connect with you, where can they find you?
[00:38:05] Andrea Rotondo: Uh, you can find me on LinkedIn mostly. That's where I am hanging out the most.
[00:38:09] Uh, just block my name up. Andrea Rotondo. Andrea Rotondo. And I'm also on Instagram, Andrea dot rotondo. Andre, it was
[00:38:18] Ashley Comegys: so wonderful to have you here today. I know this is not gonna be the end of us talking, um, and you sharing your wisdom and experience with us, but just thank you so much for taking the time to be here today.
[00:38:31] Thank
[00:38:31] Andrea Rotondo: you. Thank you so much for having me and for listening.
[00:38:36] Ashley Comegys: Thank you so much for listening to the Raise to Empower podcast. Check the show notes for all links and resources mentioned in the. If you found today's episode helpful or inspiring, be sure to share it with your therapist friends, and don't forget to subscribe to the show and leave your five star rating and review.
[00:38:53] It truly means so much to me and will help us get our message of empowerment out to other women and mom clinicians, [00:39:00] and I'd love to connect with you in our Facebook community. So check out the show notes for the link or head to Bit.ly/raisedtoempower to join us. I'll see you back here next week.