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Good Bookkeeping Habits for Chiropractors: Part 1

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By Joy Carns

Never Do This…

This is one habit you do not want to have for your chiropractic business. Charging business expenses to your personal credit card, using a personal check for a business expense, or using your social security number for your business tax identification is a big mistake.

Banks are not happy when you use your personal checking account and credit card for your business. When it is time to file your taxes, your accountant will not appreciate having to sort through your receipts, credit card statements, and bank statements to figure out which are your personal expenses and which are your business expenses. In addition, you will receive a higher bill from your accountant for all the extra time he or she had to devote to sorting your expenses.

What can you do, if you find yourself in this situation?

  1. Treat your business as a completely different entity.
  2. Request a Tax Identification Number from the IRS for your business.
  3. Open a business checking account.
  4. Get a business debit/credit card.
  5. Keep a mileage log of your business miles.
  6. Sort through all your receipts, credit card statements, and bank statements to separate personal and business expenses.
  7. Give yourself a salary or do a monthly draw from your business income for your personal expenses.

If you have been making this very common mistake with your business for some time, you might be overwhelmed with the amount of work and time it could take you to get your expenses sorted. You might want to consider finding a qualified bookkeeper to lighten your load.

Do not despair as once your business expenses are organized and you are using your business debit/credit card and checking account for all your business expenses things will run much smoother.

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