Financial Literacy for Therapists in Private Practice #189

John teaches 9 essential vocabulary terms to help therapists in private practice with their financial literacy, including: Asset: anything tangible or intangible that is owned by the business. Or, anything that actively makes you money. 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). 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. Balance sheet: snapshot of the company’s worth at any given time Cash flow: money coming in and going out (liquidity) Cash flow projection: helps you plan ahead for future growth as well as risk Revenue: money received from sales Gross profit: revenue minus cost of goods sold (less relevant for us) 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