Every now and then, people are trying to build private practice. One needs to realize that private practice is actually business and not a hobby. Being a business, a lot of things are put into combination for it to flourish. Combination is required for effective marketing, proper mindset and the right attitude. A key factor in setting a private practice is finances. One of the most essential factors to a successful practice is financial literacy. One needs to have a healthy relationship with money and know how to manage it. A lot of things that relate to money are there and they include adjusting thoughts and beliefs around money.
The three piece pie accounting section is something that is in accounting. These means that the income that one gets should be divided into three sections which should go into different bank accounts. The tax pie is the first and it requires that the income that is deposited here not be touched until it comes to the time of paying taxes. One needs to pay bills in a business and therefore the second section of the pie is for paying bills. Definitely in a private practice, one needs to pay bills which include water and electricity bills, services such as cleaning bills and of course salaries. The personal account is the third section of the pie. One can find that they have some of the money left after paying taxes and this money can be taken to the second section of the pie which is paying bills. When the bills are paid and there are some which is left one can take it to the personal account. This three piece pie section is very important as it makes sure that one does not lag behind in paying taxes or other bills. It also ensures that personal funds and professional funds do not mingle.
One should know the time for investment and the time for saving in more money matters. There should always exist a balance between saving and spending because one can find themselves spending even what they are supposed to pay. There is a tendency by some people at times to cling so much on their money such that they even forget some of their needs and also limit their chances of growth. There is fear for some people of not having enough. Healthy financial management will ensure that there is enough to spend and save in private practice. For the good management of the finances, the three piece pie accounting section can assure a person. One can be led to overspend or to over-save by having an unhealthy money mindset .