Financially Adjusted

#48: FOUNDATIONAL FINANCIAL KNOWLEDGE EVERY CHIROPRACTIC BUSINESS OWNER SHOULD HAVE

• Leslie Roth • Episode 48

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If you're a chiropractor running your own practice, this episode is your financial wake-up call—in the best way possible. I break down the essential elements for a solid financial foundation every chiropractic CEO needs to have a grip on. From bookkeeping and budgeting to understanding financial reports, taxes, and payroll—this episode is packed with real talk, practical advice, and resources to help you finally get a grip on your business finances. Plus, hear all about the Founding Member launch of my brand-new course: Business Financial Foundations (BFF) for Chiropractors.

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Email me with any questions you’d like answered in future Q&A episodes: support@financiallyadjusted.com

The business bank I recommend (affiliate link):
RELAY FINANCIAL

Recommended payroll software (affiliate links):
ADP
GUSTO

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My favorite budgeting app w/ an amazing free version:
EVERY DOLLAR BUDGETING APP

My preferred business credit card with cash rewards (affiliate link):

If you have healthy behaviors around spending with a credit card, this is a great one to use and earn cash back. It also links up well with QuickBooks Online. If you have unhealthy spending habits with credit cards, please avoid using one! You need to be able to pay it off monthly and not carry a balance. I use this one for my business and it makes paying bills simple.

CAPITAL ONE BUSINESS CREDIT CARD

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Disclaimer: This content is for educational and informational purposes only. Please consult with an accounting professional for direct advice based on your specific business situation.

Hello there my chiropractic friend I am so glad you're back here with me on the financial adjusted podcast…This is designed to give you insight into what it takes to be financially healthy in your business. So I'm providing practical tips…advice on money mindset…

And ways that you can better yourself as the CEO of your practice…

If we haven't met yet I am Leslie Roth your hostess. And your go to financial educator as a chiropractic business. And today is all about creating foundational financial knowledge that you should have as a chiropractic business owner So this is gonna be packed with some really good stuff…

So tune in and I'll get right into it…

First off, This week is really Special because I am rolling out a course that I did This is my first course and it's all about foundational financial education for chiropractors. So this is a founding member's launch It's Only going to be available to a small amount of people because I'm keeping this first launch small so that I can kinda get feedback and fine tune this course to work for you and be a great resource for you for years and years to come. If you would like to be a part of the founding member launch, I'll give you some details and I will link up the information in the show notes so that you can go check it out and see if it's right for you But really, no matter how many years you have been in business as a chiropractic business owner It's so important to plug in to financial education and make sure that you have solid footing that leads you to healthy financial situation.…

You can really compare financial health, with physical and mental health and wellness…Like any other thing you're trying to be healthy with in your life, there is a foundational core amount of things that you're working on So for your mental and your physical wellness, you're not just focused on one single thing…

Nor are you outsourcing this to an outside person Like you're not just relying on your doctor to make sure that you're healthy and You shouldn't be. You have to take responsibility and make sure that your health and wellness is a top priority because nobody else can care more than you do…

About your own health and well-being. So some of like the foundational things that you would focus on when you're trying to get physically and mentally fit is diet and nutrition you're gonna definitely be getting those regular chiropractic visits in of course, and movement exercise you're focused on hydration…mental wellness good sleep healthy boundaries, all of these things encompass physical and mental health and wellness And just like that with your financial health, there is just this foundation that you're looking to build as far as your education and the things that you're focusing on in your business…

And When it comes to finances, many people feel like maybe they're not in tune to their finances because they were never taught that Maybe they're just thinking you know, not a numbers person but I want you to try to reshape that and try to think about how you help your patients You get people coming to you all the time that They haven't necessarily been focusing on their health or their wellness…

But that doesn't mean that they should just say well I'm not good at health and wellness I'm just gonna ignore it. No You would tell them to plug into education…and just start slowly and have patience with themselves. So I'm gonna tell you the same thing when it comes to your financial health. It's going to take time if you haven't been plugging into your finances and you haven't really had like a base level education when it comes to business finances…

It's gonna take some time You're not gonna get this overnight. And you're not gonna be just some wizard that's running your business like pro tomorrow. No It takes time It takes investment. And it takes putting in the reps Like you have to put those reps in an order for that to come to fruition down the road You have to be consistent with your efforts. And The first step of that is plugging into education and it's knowing what to focus on.

So you might think, well I have outsourced professionals so don't have to worry too much about that. But Like I said before, it's equivalent to if you're trying to get yourself in shape and become healthy physically or mentally You wouldn't just say well I have a doctor so I'm good…No You would be taking measures your self to make sure that you were going to be healthy. So with your financial health, that's what you're doing essentially with focusing on education and figuring out What you need to do as a business owner on a daily weekly monthly annual basis to get your finances in order And be in control and be in the driver's seat of your finances. So that's what we're gonna talk about today We're gonna talk about all the core things that a business owner like you needs to focus on in order to get there. This is the stuff that you need to plug into and be consistent with.

Even if you're outsourcing other tasks even if you're outsourcing bookkeeping…

your taxes, you still have to understand what's going on in your business to be able to make solid decisions and make sure that you're directing your business where you want it to go. You're taking your hard earned money and putting it towards your goals. In the short term and the long term. And really at the end of the day that's what it's all about. It's not just about the money. It's not just about turning a profit, having money, it's about what you're doing with that money to create the life that you want.

Uh To create generational wealth. To create peace of mind. There's just so much more in it than just the money or just the numbers. So that's really why we're focusing on this ss business owners - because we want to be in charge and we want to make sure that all of our hard work isn't just disappearing…

And going into some abyss that isn't working towards our goals…

So like I said if you're if you've been in business for years and years or if you're just getting started…It's never a wrong time to start plugging into this and If you've been doing this for a long time you've been own the owner of your business for a long time and you haven't really taken measures to get in touch with your finances before, don't beat yourself up. Just know that now's the right time It's the next best time that you can do that for yourself…

…

So the first core thing that you're gonna focus on when it comes to your business and your finances is organization…

When we are disorganized…we can feel really scattered…and things can feel chaotic. And that's when we feel out of control. So if your business finances just stress you out and many times you're avoiding them there's probably a good chance that you're not organized…

So something to plug into is looking at your systems. Look at how you're saving documents.…Look at how you're functioning in your business. Like how do you feel at tax time whenever your tax professional's asking for certain things? Do you feel like you're scrambling and like you don't really have a handle on where all of your documents are and what's needed? If that's the case, then it's a good sign that you need to focus on this in your business and really dial in some systems some organizational systems I do have an organizational guide for you that can help you along the way and I'll link that in the show notes. So definitely check out. It's a free guide that I created for business owners like you that can look and see all of the different areas that they can get organized that will help guide them in their business and make them feel like they're in control. So this is the really the start of having a solid foundation in your business. Is just knowing where all of your documents are. What knowing what direction to point any professionals you work with when they need something. So, you know you're saving receipts you're saving business documents you're saving statements…

and you're knowing exactly where these things are so that when you work with an outsourced professional, or when you need things, they are right there for you…

Another huge thing to focus on in your business is bookkeeping. Bookkeeping is I think one of the biggest tax strategies that you have as a business owner, and whether or not you outsource this, it's so important that you understand financial reports that you ensure that you have an organized and accurate bookkeeping system. Getting Up to date financial reports monthly is completely dependent on how up to date and accurate your bookkeeping is and having those numbers to rely on to make business decisions is one of the biggest things that will bring you financial clarity in your business…

So if you DIY your bookkeeping…and you're feeling like you just can't stay up to date and you're really unsure as far as whether or not you're doing things accurately it's probably time to outsource your bookkeeping. So take a look at some different bookkeepers. Price them out. Talk to them about whether or not they provide monthly reports. That's what you want. You want somebody who's gonna give you those monthly reports and be up to date with them. If you already outsorce your bookkeeping, ask yourself if you're getting those monthly reports on on um a regular basis and whether or not the bookkeeper that you have is fitting as far as personalities and professionally if they are following through with what they're supposed to be following through with. This Bookkeeping is one of the biggest ways that you can get organized and be financially clear…

Your bookkeeping is tracking all of the transactions that flow in and out of your business and it's checking for mistakes which would be with reconciliations…it is providing you all of this data that you need to make business decisions so it matters a great deal. When you don't have that bookkeeping up to date you are making blind business decisions. And you can't be in control or directing your money when you're in that position…

So that is a huge huge thing…

And the next thing kind of falls in line with the bookkeeping. And that's getting those monthly statements and understanding them. So, it's not just enough to get them from an outsourced bookkeeper or to produce them yourself, you need to understand what they're telling you. And many times this is something that I see business owners getting really tripped up about.…

The biggest report that I would say you need to stand is your profit and loss statement. This is really a measure of health in your business on a monthly basis, because you're looking to see how much you have left over from the revenue that you're bringing in all your operational expenses have gone out…

One thing I see business services getting tripped up about is The profit on your profit and loss and why that doesn't match up with what's in your bank account. This is something you wanna try to get a handle on as as soon as possible. I have a couple of episodes I did that explain the balance sheet and the profit and loss statement and I'll link those in the show notes Um And it's episodes eleven and twelve. I run through what's in each report and how to under stand those and how you can relate that in your business So definitely tune into those…

It is a way that you can level up as a business owner When you understand those reports you understand the financial health of your business essentially and you can allow those numbers to direct you with what you do with your money in the future…And that leads me into the next really important foundational skill you should have as a business owner. And practice this practice is budgeting. Otherwise known as a money allocation plan I like to call it a money allocation plan or business map because essentially it is your map in your business. I look at a budget as a financial GPS. It's how you've stay in control as a business owner with your money.

You decide where your money is going and you direct that in more of a proactive way than just looking in the rearview mirror. And it's fantastic to understand your reports and look at those but that's what already happened in your business That is a reactive measure So, by looking at your budget and directing your money where to go and being up to date on that and staying ahead with that. You take control in a proactive way.…

Anything you can do proactively is what keeps you in control and helps you move the needle…

So when you have a proper money allocation plan…That is going to tell you where's where your money is going where you're directing it to.. Instead of hoping it does what you want it to do you're telling it what to do And you're making that happen So you're really prioritizing your financial health a lot when you're doing this. Ideally I think you should have a money plan a money money allocation plan for at least six months ahead of time. I think it's important to at least look a year out and determine what your long term goals are and what you can make happen on a monthly basis to get to your goals whether it's savings goals debt payoff goals, or paying yourself more as a business owner.

Everybody is different as far as like their goals and where they're at in life but the key is look ahead and think about what your long term goals are for this next year for the next five years in your business and direct your money to those goals…

And the next thing that I wanna talk about when it comes to building foundational knowledge…

and a healthy financial backbone for your business is taxes, business taxes…So I am not a tax professional so not about to give you tax advice,…You always wanna make sure you work with a tax professional that can give you specific advice for your specific situation…But when it comes to your business taxes it's important really have an understanding of the basics of what you get taxed on and how estimated taxes work and what you need to do in your specific situation so You are taxed on your net profit in your business And that is the profit that's on your income statement or your P and L pro profit unless they're all interchangeable terms But this is what you would pay tax is on So when you're estimating what to save for taxes you're doing it based on that net profit. So it's very important to get your bookkeeping order get accurate numbers on a monthly basis so that you can save twenty five to thirty percent of your net profit…

And this is something that is commonly unknown amongst business owners So a lot of people think that they pay taxes based just on what they take home from their business. That is not the case. So, it's on net profit whether you leave that in the business or whether you take it out that's what you pay taxes on. So, that's a very important thing to know in your business. And then when it comes to paying in your estimated taxes, you should be doing this quarterly. So make sure to get with your tax professional see if they can give you an estimate of what you should be sending in But beyond that you should be tracking what you need to save every single month because beyond those estimated tax payments you'll likely owe something and you don't wanna get stuck with a big tax bill at tax time. I do have a free guide when it comes to all things you know business tax estimated tax payments, and saving tracking planning for those and I'll link that in the show notes. But it's a very important thing to understand as a business owner, because it affects your personal life and what you owe taxes on…

Okay And the last thing I'm gonna talk about that I think is one of the most important things to have a grip on when it comes to your foundational financial backbone is understanding payroll. Understanding how you pay other people and understanding how you pay yourself as the owner…So, first off, when it comes to this you need to know what your business entity is how your business is structured So are you just an LLC or are you an LLC taxed as an s corporation? These are important things to know And don't worry if this is all like foreign stuff to you if you've not really learned much about this or don't know for sure what you are…simply ask your tax professional or look on past tax returns you'll be able to see what business entity you are If you filed an eleven twenty s for your business, That means you're an s corporation. Now if you filed a schedule c just right along with your personal tax returns your ten forty form. Then you're likely an LLC…So Talk to your tax professional find out what your entity is and how you should be paying yourself properly…

If you are taxed as an s corporation…

You must pay yourself a w two salary And this needs to be what the IRS deems a reasonable salary so speak with a good tax professional seed can help you determine what that would be for you based on what you do in your business. But this is a very important thing And you can take owner's draws on top of your salary if you're an s corporation…

Determine with your tax professional or your bookkeeper what Maybe a good draw would be on top of that. You wanna try to pay yourself as consistently as possible because that's not only helping you to have a financial foundation, a solid one when it comes to your business but also a solid one when it comes to your personal finances because then you can predict what you're bringing in with your business consistently And what you can put towards personal goals, you can determine how much you're bringing home based on business and personal goals So you're making decisions not separately but really together based on your personal goals and your business goals because that's gonna determine how you allocate your money from your business…

All of these things really tie together when it comes to running your business and managing your finances…

You need to have that good bookkeeping to give you the information that you need to make all of these decisions and to have a realistic money patient plan that you create when you're being proactive in your business. And knowing how much to pay yourself completely determines how well you can plan it in your personal life as well. It's all tied together So try to start really thinking of your business and your personal as being tied together in the grand scheme of things for goals…

But it's important to keep those finances separate you want to keep the bank account separate all the transactions flowing through your business separate from your personal…

…

And just being real for a minute…I work with chiropractors specifically in my bookkeeping business and some thing I have seen over the years is that there's just a real lack of education out there And that's not you know, for everybody some people have plugged into financial education. And um you know have been exposed to it a little bit more for one reason or another but that's not to you know slam chiropractors at all It's just a fact It's just the truth that there hasn't been a lot of edge out there for chiropractors…

And that's something I'm really trying to change I see that there needs to be like a real bridge there, like a real knowledge gap to fill So when it comes to running your business, And being the CEO of your chiropractic practice…This is the missing piece from what I see running my bookkeeping business. Like it's just really hard to get a solid financial foundation going when You're not doing a budget and when you're not understanding your reports. There's only so much you can do as the business owner when you don't have this this knowledge and this proactive measure backing you up. So my goal is to provide that with my course business financial foundations for chiropractors…This has been a passion project of mine for a while and I've been working on it for a while. And it's my goal to just bridge that gap of knowledge and bring you the financial education that you should have had in school before you opened up your practice So Check that out I'm gonna put all the information in the show notes but you can simply go to the financially adjusted dot com website and you can click on courses and you'll see all the information there.

So if you are listening to this at the time that it comes out May eighth then The cart is open on this course for my founding member's launch for a couple of more days so it'll end at the end of the day on the tenth. So you have until May tenth to sign up And this would include a thirty day free trial in my VIP membership aligned for profit…

So be sure to check that out as well. And to add that on with your course But you'll see a deep discount in this course compared to what it will be in the future months to come. So once the cart closes on this you'll never be able to get that one time pricing again…

Until the next time the course launches so be sure to check that out I'm really passionate about educating chiropractor that they can be equipped to manage their finances well and to just build the life that they want with their practice. I don't like seeing people who work so hard in a profession to help others. Not win with their money and not come out on top the end of the day So that's my passion behind this course And Reach out to me if you have any questions about it You can just Email me at support at financially adjusted dot com I would love to see you in there as a founding member. And Get on my list If you aren't already you can just do that by going and grabbing a freebie on my website financially adjusted dot com…I would love to be able to nurture you with financial education over the next month And equip you with the clarity that you need to feel confident and in control in your business…

So thank you so much for tuning in I appreciate you so much and I am always cheering you on whether you are in the course or not I'm always cheering you on I'm always gonna be providing you information. And actionable tips and knowledge with this podcast. So be sure to tune in I put one out every other Thursday and I will talk to you soon my friend

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Leslie Roth

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