I am pleased to introduce you to the person I trust with my business. His name will be familiar to you if you have kept up with my past writings. I have taken every opportunity to rave about the outstanding work of my accountant, Antonio Pascarella. 

When I became a private practice owner, proper accounting was one of my biggest concerns. I knew how many problems could be caused by poor accounting practices, and this led to a lot of anxiety. I knew I had to get it right. This anxiety led to diligently researching, interviewing, and finding the right accountant for my business. It started with a nerve-racking process, but it led to one of the best decisions I have ever made. Hiring Antonio has allowed me to be fully informed and completely at ease with what is happening in my finances. 

Therefore, in this blog, we will explore the importance of solid accounting practices and common mistakes business owners make. I will tell you more about the person who helped me avoid those mistakes and kept my business thriving. I’ll then give you the next steps to getting the same great results for your business. 

The Importance of Strong Accounting Practices

Strong accounting practices are crucial for the success and sustainability of any group practice. With the right accountant on your team, all the following areas become the strengths of your business:

Financial Management

• Budgeting: Proper accounting services create and manage your budget, allowing your private practice to allocate resources and plan for future expenses.
• Cash Flow Management: Accounting monitors your cash inflows and outflows. Managing cash flow ensures enough liquidity to cover expenses and investments throughout the year.

Compliance

• Tax Compliance: Accurate accounting ensures compliance with tax write-offs and regulations, calculating and paying taxes on time. This is crucial to avoiding penalties and legal issues.
• Regulatory Compliance: Private practices are subject to various regulations and industry standards. Proper accounting practices ensure adherence to these regulations. This is the only way to maintain a good standing in the industry.

Decision-Making

• Informed Decision-Making: Reliable financial reports enable business owners to make informed business decisions. This may include expanding the practice, investing in new equipment, or hiring staff. Having accurate financial information is vital to making these decisions wisely.

Financial Reporting

• Transparency: The preparation of accurate financial statements ensures transparent financial reporting. This enhances your credibility with stakeholders, such as lenders and partners.
• Performance Evaluation: Financial statements provide insights into your practice’s financial health, allowing for the evaluation of your performance over time.

Risk Management

• Identification of Financial Risks: Accounting identifies financial risks early on, allowing you to implement strategies to mitigate these risks.
• Insurance and Liability Management: Proper accounting helps assess insurance needs and manage liabilities effectively. These procedures reduce your risk of financial loss.

Business Planning

• Long-Term Planning: Private practice accounting provides historical financial data that can be used for forecasting and long-term business planning. This includes setting realistic growth targets, developing strategies, and aligning the practice with your purpose, vision, and mission.

Common Mistakes Business Owners Make

Like many business owners, when I started my private practice, I didn’t have much money. I had to be frugal and make sure every dime was spent wisely. In this situation, it can be tempting to cut corners by doing the accounting work yourself or hiring the cheapest person available. This is a big mistake. Here are just a few of the errors that can be made: 

A Poor Investment of Time 

Clinicians trying to file taxes themselves may save a few hundred dollars upfront, but think of what could be done with that time. Those hours you invest in bookkeeping and tax deductions could be spent on a marketing campaign that could expand your business and make thousands of dollars. Hiring a professional to care for your accounting keeps you working in your areas of genius. 

A Lack of Research

It may be tempting to hire the first person available or the cheapest accountant possible. It may also be tempting to blindly trust titles like CPA. 

With all due respect to those who hold the CPA credential, this does not guarantee quality work. You have to research and get to know the person who will work for you. It is essential to check all credentials, conduct interviews, and find the right person for you and your business. 

Here is a jaw-dropping story Antonio told me that I shared in my book, Multi-Million Dollar Private Practice:

I worked with an owner who had a CPA. This CPA used their own interpretation of the accounting standards. Seven years of transactions were misclassified. Some things were not classified at all. This took me months to undo. There were tax implications, penalties, and amended returns for the previous three years. It ended up being a 30,000 to 40,000 dollar mistake.

You certainly want to avoid making a 40,000-dollar mistake. So, do the research, conduct interviews, and find the right accountant to protect your bank account from problems with the IRS. 

A Lack of Planning

Tax preparation is not limited to tax season. Tax planning is a year-round project. A common mistake for mental health professionals is only thinking about taxes at the end of the year. It is crucial to prepare for income taxes throughout the year with quarterly tax payments and proper planning. 

Even if all the transactions are correctly posted, when you only look at them at the end of the year, you are looking at after-the-fact numbers. At that point, nothing can be done to alter your tax obligation. 

When you have the proper practice management and tax services, plans can be made early to positively impact your taxes. For instance, would a large expense offset your revenue and reduce your tax implications? 

A Lack of Consistency

When it comes to business finances, consistency is key. Changing accountants every year is a recipe for disaster. Things get lost, questions aren’t asked, and past tax returns are overlooked. Make the time and effort to find the right person and stick with them.

Furthermore, find the right accounting software to consistently manage your business expenses, income, and balance sheet.

Introducing Antonio Pascarella

I have avoided all of those errors and enjoyed the benefit of sound accounting practices because I hired Antonio to manage my finances. The best thing about Antonio is that he doesn’t simply learn about my finances; he wants to know me. He learns my hopes, dreams, ambitions, and goals. He wants to know my purpose, mission, and vision. Antonio understands that my personal success and business success go hand in hand. He gets to know me as a person, and when he understands my personal goals, he knows how to structure my business to help me achieve them.  

Antonio will tell you that he is not necessarily the cheapest accounting firm available, but remember, you are not hiring him as a full-time employee. That few hours a month he works for you will be well worth the expense. So, let me give you a little more insight into Antonio Pascarella’s life and work.

Antonio holds a Bachelor’s Degree in Business and Economics with a concentration in Accounting from Albertus Magnus College. He furthered his education by obtaining a Master’s in Business Administration, specializing in Accounting.

His expertise includes government, retail, service, and technology industries, serving clients in diverse fields such as therapy, clothing, food services, software development, contracting, landscaping, masonry, real estate, beauty studios, photography, consulting, driving schools, coffee shops, churches, and non-profit organizations.

His skill set encompasses Business Development, Coaching, Consulting, Financial Analysis, Ratio Analysis, and Tax Preparation. Antonio is a dedicated professional affiliated with prestigious organizations such as The American Institute of Certified Public Accountants, the American Institute of Professional Bookkeepers, and the National Association of Enrolled Agents. As a Notary Public and member of the National Notary Association, Antonio brings a comprehensive understanding of legal documentation to his practice.

This is a long checklist of credentials and certifications, but it is not what won me over. The most outstanding aspect of working with Antonio is that he is an educator. He makes sure I understand all aspects of my business. He is so knowledgeable in his professional practices that he can teach them. That is the sign of true mastery. 

Today, I have a thriving business, and one of the reasons is I hired Antonio Pascarella.