PD3 FINAL

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JennieF
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236446
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PD3 FINAL
Updated:
2013-10-01 15:55:34
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Professional Development
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PD3 FINAL
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  1. What is important when choosing advisors
    *reliable, affordable and trustworthy counsel is crucial to your business health*
    • pick the members of your advisory team BEFORE you need them
    • don't wait for an emergency when you may not have ample time to find a appropriate advisor to assist with the situation
  2. What is important about professional affiliations and how many should you have
    • important for business world & the development of a professional image
    • educational, social & networking benefits
    • joint at least 2 organizations: one that specifically relates to your profession and two that supports your visibility in the local community
  3. Where can you find information on professional affiliations
    • AMTA
    • ABMT
    • Chamber of Commerce
    • Other business owners
  4. What is the three major purposes that client files serve
    • recordkeeping: including proper documentation to support IRS filings. The rudimentary info to include in each file is the client's name, address, phone number, session dates and amounts paid
    • up-to-date files: document a client's needs and progress
    • necessary for insurance reimbursement: many insurances will not pay for maintenance care, it must be "reasonable & necessary" is the term used to validate a treatment modality (if a wellness provider can show proof of an injury or condition (reasonable) and substantiate the success of treatment (e.g., a decrease in symptoms), the care is considered curative (necessary, not palliative
  5. In addition to keeping files, what is recommend that yo have at the front desk & why?
    • A sign-in sheet
    • It is for your protection - it verifies the client was at your office
  6. What are the basic charting tips
    • review client's file immediately before you meet with him/her.
    • make concise & complete notes after each session
    • Be cautious of labeling or diagnosing clients in a matter way that could reflect negatively upon them.
    • pay close attention to confidentiality
    • focus on facts; avoid analysis or judgements
    • avoid using abbreviations or symbols not specifically defined by your employer, group practice or standard industry practice
    • you may need to chart electronically (some medical and healthcare environments)
  7. Planning is what stage
    the state that the practitioner and client create together
  8. Long-range treatment plans
    • key to having clients who receive treatments on a regular basis
    • blueprints to follow while working with any specific client
    • serve as a reminder for the client to take responsibility for his goals
  9. The plan is based upon what
    all the information gathered in the initiation and exploration stages of the interview as well as the session.
  10. What are some items to include in the plan
    • client's short-term and long-range well-being goals
    • indications and contraindications
    • treatment frequency
    • specific modalities to be used
    • homework
    • possible referrals to other wellness providers
  11. What makes a treatment more powerful with the client & inspires them to take an active role in their well-being
    creating a vision so they can experience themselves having attained their goals
  12. What is the time-frame for a short-term goal & a long-term goal & what is best for the client to actually do
    • Short-term: individual sessions & the next few treatments
    • Long-term: covering periods of 3, 6, 9, and 12 months
    • Because you cannot prescribe, but describe, it is best to let the client determine the treatment frequency
  13. Interaction Levels are...
    • getting involved in a group practice to either share expenses or you desire more contact and camaraderie
    • it is important to clarify your desired levels of interaction
    • Time, energy, and concern goes into maintaining decent relationships
    • holding weekly or bi-weekly office meetings - good to keep everyone up to date
  14. Why is Supply & Demand important
    • This info is crucial for determining where you choose to practice and whom you target as clients
    • It is important to look at the general demand for wellness care in your city and specific need for your particular services
  15. Supply & Demand Example
    *in this example, it's likely that this city can support a few additional practitioners
    • Population: 100,000
    • Average number of people receiving your type of work: 15%
    • Average number of treatments per year that a client receives: 10
    • Current practitioners in your field: 100
    • 100,000 x 15% = 15,000 people receiving your type of work
    • 15,000 x 10 = 150,000 sessions per year
    • 150,000 divided by 100 = 1,500 sessions per  practitoner per year
    • 1,500 divided 48 weeks per year = 31.25 sessions per week
  16. Questions to Ask when interviewing business owners
    • How long have you been in practice?
    • What obstacles did you have to overcome?
    • What are some of the smartest decisions you made in terms of business success?
    • What re some poor decisions or mistake that you made that I should avoid?
    • What are the keys to long-term success in this industry?
    • At waht point in your career did you first feel successful?
    • How much has your business model changed now form when you first started?
    • What advice do you have for me about gaining the best results with a business support group?
    • If you could do it all over again, what would you do differently?
    • For those of you who are students: What would you suggest I do while in school to prepare me for being in business?
  17. Another way to gain valuable business perspectives is to...
    meet with professionals who provide services or supplies to your segment of the wellness industry.
  18. How can you research your potential markets
    • Informal Survey
    • Hire a marketing consultant to do the research
    • Discuss the industry with other people who service your potential clients (such as athletes)
    • The professions and companies that provide products and services to athletes such as: massage therapists, medical doctors, sports phychologists, chiropractors, trainers, sporting good stores, nutritionists, equipment manufacturers and hypnotherapists - they can give a broader view than someone who does your specific type of work
  19. What does the IRS usually allow for a Sole Proprietorship with more than one person
    a married couple
  20. What are the major disadvantages of sole proprietorship?
    • having to be responsible for all business aspects
    • relative difficulty in obtaining financing and unlimited liability
    • all business debts and liabilities are the personal responsibility of the owner
    • damages from lawsuits brought against the business can be taken from your personal assets
  21. What are the main advantages of sole proprietorship?
    • ease of formation (minimal governmental regulation on how the business is operated)
    • possession of profits
    • control of all decisions and relatively simple financial record keeping
  22. What type of business license is required for a wellness provider?
    • it varies from state to state
    • you may need more than one license
  23. From a legal standpoint, as a sole proprietor, you and your business is one entity... define what this means
    • You can't be treated as an employee of the business
    • You may withdraw $ from your business, but it isn't considered a wage and can't be deducted as a business expense
    • you pay self-employment taxes and income taxes
    • in the U.S. you file a Scheduled C with your 1040 form and pay personal income taxes on profits
  24. What are the pros of having a partnership
    • help the ease the loneliness of being self-employed
    • allow you to take time off
    • add diversity of services and approaches
    • can infuse capital
    • decrease overhead expenses
    • enable you to share the activities involved in running a business
    • provide you with another person who you can brainstorm
    • it could also be a nightmare
  25. What is a partnership
    when two or more people contribute to assets to carry on a jointly-owned business and share in the profits or losses
  26. What is the operative phrase for partnerships
    "jointly-owned"
  27. What is the governmental regulation to have a partnership
    • financial recordkeeping is a bit more involved than a sole proprietorship
    • must obtain a federal ID # (can get this by contacting the IRS and requesting form SS-4)
    • Partnerships file a Schedule K-1 (form 1065, partnership informational tax return), but the partnership itself pays no taxes
    • each partner submits a copy of the K-1 to report his share of profits or losses on his individual tax return, form 1040
  28. What can you personally be held responsible for
    debts and legal obligations incurred by the partnership, even for those made w/out your knowledge or consent
  29. What is the best way to protect yourself in a partnership
    forming a Limited Liability Company (LLC)
  30. The major categories of business corporations are
    • C Corporations
    • S Corporations
    • Professional Corporations
  31. Owners who work in an incorporated business are considered
    employees and are paid as such
  32. Why do people incorporate & what are the pros
    • because they think it gives them an air of legitimacy without considering all the legal implications
    • you become more detached (boundaries)
    • the ups and downs of business are a bit easier to take
    • you pay yourself regularly
  33. Keypoints of a corporation
    • most costly structure to form and dissolve in terms of finances and time
    • required filings with the IRS, as well as with the sate in which the corp. is formed
    • no federal fees involved
    • the state may require an initial filing fee and annual report filing fees
  34. The minimal components of the incorporation process are:
    • adopting and filing Articles of Incorporation
    • Developing corporate Bylaws
    • Holding the first board of directors and shareholders meeting and preparing meeting minutes
    • Issuing stock certificates
    • Filing for an IRS Employer ID #
    • Fling Subchapter S status if so adopted within 75 days of incorporating or start of business
    • Setting up your corporate book that contains all corporate documents
  35. What are the general minimum requirements for maintaining a corporation
    • conducting annual meetings and filing the minutes in your corporate book
    • filing required documentation with the sate on an annual basis
    • keeping your corporate book up to date
  36. Primary motivations  for incorporating
    • limit liability
    • protects your personal assets from being taken by creditors
    • but doesn't always shelter you from lawsuits
  37. Other popular reasons for incorporating include:
    • the ease in which the business can be transferred
    • the ability to raise capital by selling shares of stock, potential tax advantages and fringe benefits such as health and life insur premiums
    • tuition reimbursement
    • tax-sheltered retirement plans, which can be deducted partially and often fully as business expenses
  38. Keypoints on C Corporations
    • subject to corporate income tax on the net business profits
    • potential for double taxation (the corp as well as the individual)
    • most small business owners use all the profits as tax-deductible salaries and fringe benefits or they retain money to expand the business
    • income can be divided between paying $ to shareholders (salaries and dividends) and keeping the rest of the profits in the business (aka INCOME SPLITTING)
    • the retained earnings are taxed at the initial rate of 15%
    • must file annual returns by the 15th day of the 3rd month after the close of the fiscal year and make quarterly estimated tax payments
  39. S Corporations Keypoints
    • taxed like partnerships
    • but retain the liability protection of C Corporations
    • file corporate tax returns, but do not pay federal income tax
    • profits are passed on to the owners who pay the taxes at their individual rates
    • primary tax advantage is reducing the potential for double taxation
    • allows the owners/shareholders to directly declare business losses on their individual tax return
    • prime eligibility requirements is that the # of stockholders be 75 or less
  40. How do you form a S Corporation
    • fill out IRS form 2553 within 75 days after incorporating
    • must file annual returns (form 1120-S)
  41. Personal Service Corporation is more common with?
    more common with group practices: accountants, attorneys, engineers, business consultants and performance artists
  42. Taxes with Personal Service Corporations
    • taxed at a higher rate than other corporations
    • income-splitting is not allowed
  43. What is a LLC (Limited Liability Company)
    a hybrid of a partnership and a corporation
  44. What are the benefits of an LLC
    • the individual owners a separate entity from the actual business and provides them with a limited personal liability shield
    • the profits flow through to the owners
  45. Paperwork for an LLC
    • you must file Articles of a Limited Liablity Company
    • develop an Organizational Agreement
    • file for an IRS Employee ID#
    • there may be annual meetings or additional filings with the state
    • file an IRS form 1065 and each member files a Form K-1 at the end of  each year
    • each member reports her share of the profits or losses on her individual income tax return
  46. Keypoints on Location of your business
    • attracts clients
    • fits your business image
    • accommodates your business needs in terms of size and layout (and potential expansion)
    • properly zoned
    • priced within your budget
  47. Home office advantages
    • cheaper to run vs. commercial office
    • can take tax deduction
    • can do household tasks between sessions
    • more time with family
    • no commute
  48. Cons to a Home office
    • people are not productive at home
    • easily distracted and lack discipline
    • family not respecting boundaries
    • zoning restrictions
    • image of professionalism is rarely found in a home office
  49. Important questions to ask yourself for your home office
    • Will your clients want to come here
    • Is there convenient parking
  50. Before signing a lease, make sure it is right for you. What are some keypoints in this
    • research the office's historical information
    • find out why the space is vacant
    • ascertain the # of tenants who have held the space in the past 10 years
    • get a listing of other current tenants, including their type of business, office hrs, schedule of lease exp dates
    • visit the area different times of the day and night to get a sense of the traffic flow
    • ask the landlord or leasing agent for a copy of the operating rules and regulations to ensure compatibility with your practice
    • determine if building is properly zoned for your type of work
    • inspect the physical structure - make sure the roof is sound, the heating and cooling system in good condition and the building secure (appropriate exterior lighting, stable stairs, lockable lobby door).
    • check with the building and fire inspectors to see if the space has been cited
    • last step would be to review all legal documents with an attorney
  51. Allows you the privilege of doing business
    Business License
  52. Allows you to work in a specific industry as long as you comply with the profession's regulations
    Occupational License
  53. Allows you to collect (and remit) sales tax
    Transaction Privilege Tax License
  54. These permits are issued after your location has been assessed and shows that the business operation conforms with area plans, has proper zoning and has adequate parking
    Planning and Zoning Permits
  55. This permit is issued after you location is inspected and has met the minimum safety requirements for you and your clients, and complies with fire and building codes
    Building Safety Permit
  56. Covers costs of injuries that occur to business-related visitors on your property.

    Don't assume that this automatically covered in your office lease. Also, if you work out of your home, your homeowners policy might not cover this either. Liability insurance doesn't cover you or employees.
    Liability Insurance
  57. Protects you from claims due to loss incurred by your clients as a result of negligence or failure on your part to perform at a professional skill level
    Malpractice Liability Insurance
  58. Very important, particularly if you use your car in your business. Be sure to carry full coverage including disability, business interruption and loss or damage to business related items
    Automobile Insurance
  59. Covers business equipment, furniture, supplies and documents. If you work out of your home, you may need to purchase a rider to get adequate protection. You most likely need a separate policy for an outside office
    Fire & Theft Insurance
  60. Safeguards you from loss of income if you cannot work due to illness or injury. You are paid a certain monthly amount if you're permanently disabled or a portion if you're partially disabled (can include long-term illness)
    Personal Disability Insurance
  61. Helps cover your medical bills, particularly for complicated illnesses, injuries and hospitalization
    Medial Health Insurance
  62. Required by law if you have employees. It covers all of the costs that you as an employer would be required to pay for any injury to an employee. It also provides the employee with disability and death benefits if injured or killed on the job. The employer is responsible for the cost of the insurance premium
    Workers Compensation Insurance
  63. Protects you against lawsuits arising from actions or omissions by any of your business partners
    Partnership Insurance
  64. Where can you find help to create your business plan
    • Business organizations such as: Service Core of Retired Executives (SCORE)
    • plan writing software
    • local business school centers for entrepreneurs
    • top-notch business books
  65. Electronic claims keypoints
    • fewer denials, reductions and disuputes
    • can save you time, $ and enhance cash flow
    • involves submitting a claim to an insurance provider through a clearinghouse
    • typically submitted to the insurance provider in a digital format via a tape or diskette or digital fax
  66. How can you minimize the risks of your IP contractors being reclassified as employees:
    • make certain IP contractors have multiple sources of income
    • sign "independent contractor" contracts which clearly state the requirements of al parties while making it clear the contractors are free to pursue other clients
    • require contractors to provide their own tables, linens, products, music and other supplies
    • allow contractors to set their own schedules (ideally no more than 10 hrs per week or on an as-need basis for special events)
    • clients pay contractors directly
    • request copies of the contractor's tax returns
    • require contractors to provide their own insurance and workers' comp coverage
    • ultimately the IRS will determine whether a worker is an employee by filing Form SS-8
  67. An individual is likely to be considered an employee if he or she
    • is required to comply with company instructions about when, where and how to work
    • has been trained by the company to perform services in a particular manner
    • has her services integrated into the company's operations because the services are critical to the success of the business
    • must render services personally
    • utilizes assistants provided by the company
    • has an ongoing, continuing relationship with the company
    • has set work hours established by the employer
    • is required to work the equivalent of full time
    • works on the company's designated premises
    • must perform services in order or sequence determined by the employer
    • must submit regular progress reports
    • is paid in regular intervals, such as by the hour, week or month
    • is reimbursed for all business and travel expenses
    • uses tools and materials furnished by the employer
    • has no significant investment in the facilities that are used
    • has no risk of loss
    • works for only one person or company
    • does not offer services to the general public
    • can be discharged by the company
    • can terminate the relationship without incurring liablity
  68. What are the 2 things that impact the disparity when a client is charged for a service and the salary of an employee who provided the service
    • 1. Set Up
    • 2. Running the business
  69. What are the two most common mistakes that people make on their taxes
    • doing their own
    • and not setting aside money to pay for taxes
  70. What should you do to help you set aside taxes
    • opening an interest-bearing business savings or money market account
    • regularly deposit money into that account
  71. How long do I need to keep my records
    • General correspondence: 5 yrs
    • Bank Statements: 7 yrs
    • Receipts: 7 yrs
    • Canceled checks: 7 yrs for most
    • Ledger sheets: 7 yrs
    • Year-end financial statements: Indefinitely
    • Contracts: Indefinitely
    • Licenses and permits: Indefinitely
    • Insurance claims: Indefinitely
    • Tax returns: Indefinitely
  72. The total resources (current, fixed or other) of the sole practitioner; tangible & intangible
    ASSETS
  73. Current and long-term debts of the practitioner or business
    LIABILITIES
  74. Entries made to left side of account; increase Asset & Expense Accounts, & REDUCE LIABILITY, Capital and Income Accounts
    DEBITS
  75. Entries made on the "right side" of an account; reduce Asset and Expense Accounts, and INCREASE LIABILITY, Capital and Income Accounts
    CREDITS
  76. According to the IRS, a legitimate expense must meet the following quidelines:
    • it must be incurred in connection with your business
    • be ordinary (similar expense to others in your profession); and be necessary
  77. Common Fully Deductible Business Expenses
    • Bank Service Charges
    • Business Books & Trade Publications
    • Business Insurance
    • Credit Card Fees
    • Dues
    • Education
    • Furnishings, Decorations & Equipment
    • Interest on Business Debt
    • Insurance
    • Inventory Cost of Goods
    • Linen Service
    • Maintenance and Repairs
    • Marketing
    • Office Supplies
    • Online Fees
    • Postage
    • Printing and Copying
    • Professional Fees
    • Rent
    • Sales and Exercise Tax
    • Samples
    • Telephone, iPAD, KINDLE & Utilities
  78. What form is U.S. Individual Income Tax Return & ES: Estimated Tax For Individuals (quarterly if you will owe taxes)
    Form 1040
  79. What form is the Employee Business Expenses
    Form 2106
  80. What form is the Employee's Report of Tips to Employer (given monthly to your employer)
    Form 4070
  81. Form for SS and Medicare Tax on Unreported Tip Income
    Form 4137
  82. What is barter
    cashless exchange of goods and services

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