Bookkeeping basics for a private practice
10 questions from the lesson, checked as you go.
Check what you learned
10 questions from this lesson. Answers are checked as you go; nothing is recorded.
1 / 10
What is the first step a new clinician should take when starting a private practice according to the lesson?
Hint
Look at the opening paragraph of the lesson.
The lesson states, "One of the first things you should do when you start a business is open a business checking account."
2 / 10
Which accounting method does the lesson recommend for a therapy practice because it matches how money moves?
Hint
Find the sentence that compares the methods to money flow.
The lesson says, "I use cash. For a therapy practice it matches how money moves."
3 / 10
Under the cash method, when are expenses generally deducted?
Hint
Check the description of the cash method in the lesson.
The lesson explains, "Under the cash method you report income in the year you receive it and generally deduct expenses in the year you pay them."
4 / 10
Which document is NOT listed as a monthly record to track for income?
Hint
Look at the list of income documents in the lesson.
The lesson lists deposit slips, receipts, and invoices for income, but cancelled checks are for expenses.
5 / 10
What is the standard mileage rate per business mile for 2025 as mentioned in the lesson?
Hint
Find the mileage rate in the Schedule C section.
The lesson states, "the standard rate per business mile (70 cents for 2025)."
6 / 10
Which line on Schedule C is used to claim a home office deduction?
Hint
Locate the home office reference in the lesson.
The lesson says, "Line 30 of Schedule C covers it, through Form 8829 or a simplified square‑footage method."
7 / 10
What percentage of net earnings is the self‑employment tax rate for 2025?
Hint
Find the self‑employment tax description in the lesson.
The lesson explains, "self‑employed, you pay both: 15.3% of net earnings."
8 / 10
Which Oregon registration is likely unnecessary for a solo therapy practice?
Hint
Check the section on Oregon registrations.
The lesson notes, "A solo therapy practice does not get near either line" for the Corporate Activity Tax.
9 / 10
What must a clinician do with their bank statement when it arrives each month?
Hint
Read the monthly close routine description.
The lesson says, "make sure the statement, your checkbook and your books agree."
10 / 10
Which records should be kept for at least four years if the clinician ever has employees?
Hint
Find the retention period for employment tax records in the lesson.
The lesson states, "Employment tax records... are kept for at least 4 years after the date the tax becomes due or is paid."
Worth another look