Practical, 3-minute financial insights to help you understand your numbers, make confident decisions, and build a more profitable therapy group practice. Delivered every other Thursday.
where did the $400 go?
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Hi Reader, Seems like a lot has happened since my last email. Halloween and daylight saving time, to name a few. And just like that, I feel like there are about 8,000 things to do before Thanksgiving and Christmas. I’m rounding down. Somewhere on that list: part 4 of the 1099 series. Your books can reconcile to the penny and still give you the wrong number for a contractor’s 1099. Last year, a client wrote a $400 check to an independent contractor from their personal bank account. They told us about it. We recorded it with a journal entry. But the entry used a slightly different vendor name than the one already on file. So it wouldn’t have shown up on that contractor’s QuickBooks vendor report. Build the 1099 from that report in January, and it comes up $400 short. We caught it at month-end, when we check for duplicate vendors. Any time you pay a contractor outside your usual process, pick them from your existing vendor list instead of typing their name. In QuickBooks, a new spelling becomes a new vendor. That was one $400 check. The article traces a clinician whose $14,800 got split across 3 vendor records, plus the 5 places contractor payments hide, including the one no vendor report will show you. 👉 Why your bookkeeping can look clean and still be a mess at 1099 time Paid a contractor outside your usual process this year? Hit reply and tell me which account it came out of. Until next time, Abby |
The Owner's Chair
Practical, 3-minute financial insights to help you understand your numbers, make confident decisions, and build a more profitable therapy group practice. Delivered every other Thursday.
Hi Reader, I’m still reeling from what happened this weekend at Stryker, the Wichita soccer complex where my kids play, and I’m holding the families directly affected in my heart. ❤️🩹 This week is part 3 of the 1099 series. Whether an LLC gets a 1099 depends on how it’s taxed, and the business name won’t tell you that. This past April, 3 clinicians at a practice I work with asked the same question: where’s my 1099? The practice hadn’t sent one to any of them. Each clinician’s W-9 had a...
Hi Reader, My husband and I built 5 pieces of furniture, and my daughter has officially moved into her room. We still need to add her things and shop for decor, but she’s so excited to have her own space. Back to work I can do sitting down. A W-9 on file only protects you if it still matches your books. Picture Hannah Abbott, a contract clinician. She filled out her W-9 in 2023, in her own name. In 2025, she formed Godric’s Hollow Counseling LLC and asked to be paid through the business....
Hi Reader, I spent the weekend painting my daughter’s room. Round 2 of 3. This weekend should be the last of the painting, and the new furniture is supposed to arrive Tuesday. I’m putting a lot of faith in “supposed to.” Speaking of things that only work in the right order. Hire a clinician who lives in another state and you usually pick up a second state’s payroll, which has to be set up before her first payday. A client of mine hired a clinician in California. She started May 18. The...