John teaches 9 essential vocabulary terms to help therapists in private practice with their financial literacy, including:

1. Asset: anything tangible or intangible that is owned by the business. Or, anything that actively makes you money.
2. Liability: anything that costs or could cost the business money. E.g., accounts payable, wages, taxes, etc. (argument: a house that is not yet paid off is still a liability. Your car is also a liability).
3. Profit and loss/income statement: shows how much the business earned and spent in a given period of time. Demonstrates the viability of your business.
4. Balance sheet: snapshot of the company’s worth at any given time
5. Cash flow: money coming in and going out (liquidity)
6. Cash flow projection: helps you plan ahead for future growth as well as risk
7. Revenue: money received from sales
8. Gross profit: revenue minus cost of goods sold (less relevant for us)
9. Net profit/net income: the residual income that a business is left with after paying all expenses

Find out how well your business is doing by taking our Healthy Private Practice Assessment: https://2dtyclgi7f9.typeform.com/to/ksG0SUu7