Year-Round Tax Preparation for Northern Virginia Mental Health Pros
April 26, 2022at10:30 PM
Tax season stress is common among small business owners and sole proprietors. For mental health professionals who focus on the well-being of their clients, dealing with bookkeeping and tax preparation can be a time-consuming distraction from running their business. You may know tax deductions available to you, but feel overwhelmed by filling out the required forms and collecting the paperwork. Working with a skilled tax professional who knows the changes in tax laws is essential. Beyond Accounting & Tax specializes in working with mental health professionals for reliable tax preparation in Ashburn, VA and Northern Virginia.
Here are some of the top recommended year-round tax strategies for mental health professionals.
Maximize your tax deductions throughout the year.
Tax deductions aren’t really “free money,” but they are ways to reduce your tax burden each year as a sole proprietorship. The priority for private practice therapists is usually finding more clients and providing expert mental health care. But these year-round strategies can help eliminate an excessive burden on your practice.
Track spending on advertising and marketing.
Anything you spend on marketing–from business cards to email marketing lists and pay-per-click online advertising–you can deduct from your taxable income.
Keep records for spending on business meals.
This deduction is well-known; when you meet for coffee or lunch with colleagues and employees, you can claim the expense on your taxes. Saving records of these meals throughout the year is essential when it comes time to file taxes.
Record membership fees for joining mental health professional associations.
Joining professional associations is a great way to network within your mental health community and stay current on news and the latest practices. There’s a financial benefit to joining associations and groups–you can deduct those fees during tax season.
Make note of fees for your small business accounts.
Anything a financial institution charges, whether a bank or credit card company, is part of the cost of operating your mental health business. An experienced bookkeeper will help you find strategies for avoiding these costs in the first place, but will deduct whatever you have to pay from your tax obligation.
Invest in yourself and your business with continuing education.
Seminars, classes, and conferences are essential for improving your business’s quality of service and networking. The cost is also tax-deductible.
Strategize depreciation expenses.
Significant expenses over $2,500––like technology, office equipment, and furniture––can either be claimed in a single year or spread out over the years the equipment is in use.
Keep track of your personal therapy expenses.
Engaging in personal therapy is essential for mental health professionals; those costs are part of your professional operation, therefore, tax-deductible.
Calculate your home office deductions and virtual therapy software expenses.
After COVID, many professionals gave up their in-person practices and office and opted to offer only virtual services. Your home office, technology, and software are all approved deductions for your income.
Remember your professional insurance for liability and malpractice.
Mental health professionals must carry insurance products for liability and malpractice. The cost of insurance is substantial but provides significant savings during tax season.
Deduct taxes you’re currently paying for your business.
You might be surprised to learn that the taxes you’re paying––property, sales tax, fuel tax, and real estate tax on your office––are approved deductions.
Get year-round bookkeeping from Beyond Accounting & Tax plus skilled tax preparation in Ashburn, VA.
Our mission is to provide mental health professionals with bookkeeping and tax preparation services to enter tax season with confidence and enjoy year-round peace of mind. We understand the demands of running a business and how taxes and reconciling your books can compound that stress.
We help our clients increase profits to gain a clear vision of the future. That way, you can not only set goals for growth, but achieve them. The path to greater financial security isn’t always straightforward for mental health professionals––we offer clarity and actionable strategies. Your peace of mind is our goal. Set up a consultation to learn more about our year-round bookkeeping and tax preparation strategies in Ashburn, VA.