Do you want more support to build a practice that does more than therapy? Come over and join the community at www.drrosie.co.uk

Check out the upcoming self publishing workshop for the Do More Than Therapy members at www.drrosie.co.uk

Catherine France, insurance expert: https://www.catherinefrance.com/

WriteUpp practice management software (affiliate link because I LOVE it) https://writeupp.com/default.aspx?refid=7168

Zoom video conferencing software www.zoom.us

As psychologists, therapists or counsellors we are very lucky in that it is possible for us to build what is known as a “cockroach” business. Basically this means we often don’t need much investment to start up as our skills are valuable. This also means we are less likely to run into financial trouble than a business like a hair salon that requires lots of loans at the beginning. BUT however frugal you are there are still costs associated with running a business. If you are not careful these can creep up on you and lead to a disappointing end of month.

It felt quite scary for me to write this as I know that I don’t always make perfect financial decisions. However, I have learned a lot the hard way and I wanted to share that with you so here is a break down of the costs I have discovered on my private psychology practice journey.

You need to register for self assessment with HMRC. This is very easy on the direct.gov website. If you are a sole trader you just tell HMRC and away you go. Keep good records of any money you spend and save every receipt and this is incredibly easy. I fully recommend software like FreeAgent which allows you to link to your bank account, explain every transaction as you go and upload receipts. There are lots out there but FreeAgent came free with my Natwest business banking and was very easy to use. Others that I have heard good things about are Xero and Quickbooks. The advantage of these is that when it comes to submitting your tax return you can do it with the click of a button. You could also just snap a photo of any receipt and/or screenshot email receipts and save them into a google drive folder. Self assessment for a sole trader is actually incredibly easy if you have kept good records of your transactions. I am going to get an accountant on the podcast to talk about it but honestly, I am mathematically challenged and have never struggled. Ltd company accounts are another beast all together so if you are a Ltd company or social enterprise don’t try to work it out yourself, get an accountant.

I am obviously not a qualified accountant and you should speak to someone qualified about your specific circumstances. As a guideline however, most people seem to agree that setting aside 25% of your earnings in a separate account specifically for tax is sensible. If you are like me you will have a lot of allowable expenses that may mean you don’t need everything you save for your tax bill but I wouldn’t try and work it out. Just keep 25% back from the beginning and enjoy the bonus if you don’t need it all.

Professional website - £1000. This can be done MUCH cheaper but having a rubbish website can really undermine your credibility. Your site will also be crucial if you want...