Do not use cash to pay business bills. It is better to use your checking account. Your accountant can get tax information directly from there, instead of having to go through all your paper receipts. Deposit all the money the business earns into the business checking account. Pay all business expenses either with checks written from that account or a debit card attached to the account. You can then transfer money from that business account into your personal account when you need it. You will need to keep certain receipts handy in case of an audit but all the information, income and expenses, will be in your business bank statements and check recorder. By the way, make sure your bank does not hold you financially responsible if your debit card information is hijacked and money is withdrawn from your account.

Accepting credit cards is a convenience for the client and helps increase business. Whatever bank you’re established at may be the best place to first seek a merchant account. Usually a separate company processes credit cards and deposits the money in your account. Different banks may refer you to the same processing company but the representatives of that company will quote different fees. So it pays to shop around. Sometime we have to take what we can get if we are not established. In that case you can wait till the second year to find better deals on processing. You do not have to change banks to change the company which processes your credit card transactions.

If you’re planning on accepting insurance, consider not reducing your prices, or if you will, not by much. While you’re treating the person with insurance, you may be losing a full price client. Also you’re not getting the same returns for your energy and time, which is what you’re selling in a service business. Not that you would not want to help everyone but you must think about supporting the business and covering your retirement. I have known many therapists who retired with nothing; not a home, not a bank account…nothing. They never saw it coming. So please plan and execute for your retirement. Then you will be free to spend the rest of your life as you wish.

Be sure to have your prices posted. The NCBTMB Standard IV says “display/discuss a schedule of fees in advance of the session that is clearly understood by the client or potential client.” This is a good idea as it prevents the possibility of an embarrassing misunderstanding later.