My RD Journey

From Undergrad -> Internship -> RD -> Private Practice!


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Private Practice Tools & Apps

When I first started PorrazzaNutrition, I did a lot via paper (i.e. my accounting, charting, etc) and I soon realized just how many files I was accumulating. Over the past couple of years, I have implemented a few systems/applications in my practice and I have complied a list of just some of them for you today. There are tons of competing products/services on the market; however, these were ones I have used personally and were satisfied with. This is not a sponsored post and I do not work for any of the companies featured below.

Organization
Trello– I have just started using this free app/site and it is awesome for individuals and teams! I love that you can create different boards (topics) and lists. I used for long-term lists and also for some of the committees I am on. I also use the boards as ideas for my blogs and then I list out talking points. It is great for me when I am not able to sit down and write on paper.
Google Drive- If you have not used GD, start now! You get a ton of free storage! I store informational sheets, blank assessment forms, and documents that I use most often on-the-go. It is way better than storing a ton of stuff on my laptop and then only being able to access if I am on it. I use GD a lot for committees I am on. It is easier to share a folder with the minutes than emailing documents back and forth every month.
Tools for Wisdom Planner– I am totally still a pen-and-paper planner person. I tried using an online calendar and hated it! I like crossing things out and being able to flip through the months with a paper planner. I am super picky about my planners and will spend hours trying to find a good one each year (haha). I currently use the Tools for Wisdom since I specifically wanted a planner with a month view plus the days in columns with an hour-by-hour format. The pages are thick enough that highlighters do not bleed through (I am a color coding queen). I might switch up again for next year since this does not include any 2018 months. I am totally open to suggestions here!

Accounting – Quickbooks
When I first began my practice, I didn’t have a ton of income/expenses so I just tracked using ledger sheets. After about 2 years, I started looking around and Quickbooks came up a lot. It is super simple to use and cheap (I pay $5.30/month). You can save different transactions for the future so they are automatically categorized as they come in. I use the app a lot on-the-go, especially since you can scan in receipts. I still use a separate accounting sheet to track unpaid classes or checks that have not been cashed yet. It definitely makes tax season a lot simpler since you can just import your information from Quickbooks without having to enter in everything manually.

Media
Dropbox– I have the Dropbox app on my phone and computers and it makes it really easy to upload files or pictures. I take a ton of photos and it syncs automatically with my computer where I can then move them to an external hard-drive or save to my photos.
-Canva– Awesome for designing posts for social media, blogs, etc. So many free images/templates.
Pixabay–  Royalty free pictures. I take a lot more of my own photos now; however, this was really helpful for me initially.
Snapseed– Free app for editing photos. One of the best I have used so far.
Tiny Scanner– Free app that functions as a portable scanner. Your scans can be saved as a PDF or an image. I have the free version and just delete the scans once they are uploaded to where they need to be. Really useful for scanning large documents especially if you are out or don’t have a scanner at home (mine is a bit temperamental).

Newsletters – MailChimp
I use MailChimp for my bi-monthly newsletters. I also embedded a sign-up form on my website (GoDaddy) that links to my account. I like being able to embed newsletters in emails and then track the statistics after each email blast. I use the free version for my practice and have not felt the need to upgrade further yet.

As I mentioned in the beginning of the post, this is not a complete list of every tool/app I use in practice; however, it does include my main ones. I will be posting another blog to include my counseling/billing resources too!

I am always open to suggestions for tools, so leave a comment and let me know what types of software or applications that you use that have made your business life that much more productive (or simpler).


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Setting Income Goals – Billable vs. Non-Billable Hours

Hey there! A few weeks ago, I posted about setting fees in your private practice. As a follow-up to that, I wanted to break down how I determined my monthly and yearly income/expense benchmarks. This is just my way of setting income goals and it is by no means perfect. I am not an accountant or even have a business background, just a dietitian running a private practice and learning things as I go! You don’t necessarily need to do every step listed in every order, again, I am just posting this as a guide for my fellow private practice RDs and RDs-to-be.

Step 1a: Figure Out Your Personal Expenses
I separated my expenses into business and personal, but since I am self-employed, both get factored in to my equation. I found it easiest to figure out what my expenses were per month and then times that by 12 to get the yearly expenses. Any expense that was paid yearly (car insurance, etc), I divided out to see what a monthly average cost would be. My estimated monthly personal expenses ended up totaling $1470, which brought my yearly personal expense total to $17,640.

Examples of personal expenses: food, living (rent, utilities), medical (bills and medications), car-related (gas, inspection, etc), gym membership, phone bill, etc. I also added in here an extra $100 for miscellaneous expenses (i.e. gifts, clothes, etc).

Step 1b: Figure Out Your Business Expenses
Many of you who have been following me the last year or so may know that I do primarily in-home counseling and some work-site counseling. I don’t have any overhead for office space rentals, etc. I just wanted to throw that out there since my monthly business expenses may seem a bit low. My estimated monthly business expenses ended up totaling $400 initially; however, I did have to add in health care costs since I pay for my own insurance now. That brought me up to about $700/month for business expenses.

Examples of business expenses: office supplies (ink, paper, etc), travel/parking for classes/counseling, cooking class materials, referral fees, memberships, business banking fees, health care, liability insurance, faxing services/machine, etc.

Step 2: Figure Out Yearly Income 
Right off the bat, I know that I need to make at least $26,040 to cover my personal and business expenses (monthly expenses x 12). I also wanted to be able to save some of my income and not just live paycheck to paycheck. When I first figured out my desired income, I settled on $40,000 for the year. This level of income would cover my expenses + estimated taxes. For estimated taxes, I averaged about 15.3% being paid towards federal (SS + Medicare) and about 4% for PA tax. I rounded this up to about 25% just to cover myself. With taking out about $10,000/year for taxes and $26,040 for expenses, that left me with about $3,960. This number could vary in real life since I overestimated for expenses and taxes. Also, when doing taxes for the year (or quarterly), you do get some tax breaks for being a business owner and a lot of my expenses were write-offs. Regardless, I still wanted to have a rough estimate to figure out my income goals. If you wanted to have $40,000 be what you would see after taxes, just do the following -> ($40,000 x 25%) + $40,000 = $50,000. You could also think to yourself that you just want to make ends meet. In that case, you could do the following -> (Yearly expenses x 25%) + Yearly expenses = Desired yearly income.

Step 3: Figure Out Monthly Income Goals
One easy way to figure out monthly income goals would be just to divide out your desired yearly income by 12. Still using the $40,000, that would be $3,333/month. With $50,000/year that would be about $4,167/month. From this point, there are a lot of ways you can figure out client goals; however, below I list just two of them. Before I get into that, I just want to point out that you will need to think about what is considered billable versus non-billable hours. You may work a 40-hour week and end up only being able to bill for 20 hours of that. Billable time is what you are getting paid for (i.e. counseling appointment time, class time, etc). Any office work, emails sent, time prepping for an appointment, etc may not be time that you can necessarily bill for. So, when thinking about client goals just know that this is the billable time or amount of time in which you receive payment for services.

Step 4: Figure Out Client Goals (Option 1)
Let’s say you have an income goal of $3,333 per month, this breaks down into a weekly goal of about $833. If you only have 8 hours available for billable hours (i.e. 8 hours to see clients) then this means you will need to charge at least $104 per client and see at least 8/week ($32/month) to be able to reach your desired income goal. If you don’t take insurance and you already know that you charge $120/hour, this cuts the number of clients you see per month to 28 versus 32. You can think about what your time is worth and determine a rate for counseling or general services that is even higher and ends up cutting down on how many hours you need to spend doing things that count as “billable.” If you accept insurance, you are bound to the fee schedule that they set for you. So, if you get reimbursed $120/hour for initial appointments and $108 for follow-up appointments, you may need 10 initials and 20 follow-ups to hit your monthly goal.

Step 5: Figure Out Client Goals (Option 2)
If you do more than just provide counseling services, you can use this option to determine client goals. Working with the $3,333 as a monthly income goal, let’s say you run cooking classes or a nutrition class every month. Let’s say you make $800 per month to run this class 3 times. This leaves you with $2,533 ($3,333 – $800 class) to still make for the month. This could mean about 24 follow-up appointments at an average of $108/hour or it could mean 5 initial appointments at $120/hour and 18 follow-ups at $108/hour. Although this seems like a lot of numbers and scenarios, it helped me to figure out how many clients I wanted to be able to see per month. Once I figured out a client goal number, I worked on a marketing plan. I mentioned in my last blog post that I wanted to work on more programs and content versus services. I love what I do as a dietitian; however, I find myself working a lot and only being able to bill (I accept insurance) for a portion of that time. I want to free-up my time and still hit my income goals, which would mean decreasing the “service” portion and increasing the “product/program” portion.

Step 6: Overview 
In summary –> Desired Yearly Income (Factoring in Business + Personal Expenses + 25% for Taxes) divided by 12 months = Monthly Income Goal. Another option = Desired Yearly Income divided by 52 weeks (or 50 if you take out a week for vacation and another week for sick/personal time*) = Weekly Income Goal. From your monthly income goal, you can determine how many billable hours (and ultimately clients or classes) you will need to reach this. It really helps knowing your hourly rate.
*Normally, with being employed, you may get paid for personal, vacation and sick days. If you are self-employed and offer a service, if you don’t provide the service you don’t get paid.

As a way to check my progress monthly, I created two sort of “snapshot” documents for my finances. The first is the yearly look at my total income, total expenses, and net profit. I made this so I can see where my peak months are for income. The second document I created was for my monthly overview. I tracked the number of appointments (scheduled, cancelled, re-scheduled), classes ran, business and personal expenses, and total income received from both classes and counseling. I also include how many miles I drove that month for business. I was using apps to track my expenses/income before; however, I really like having the paper copy to just have it all laid out in front of me. I just recently got Quickbooks and I really love it, but again just like having my own sheet that makes sense to me.

I hope this blog helped you at least a bit in figuring out your own income/expense goals. As someone who doesn’t have a background in finance/accounting, I wanted to just be able to share my process for setting income/client goals. Leave a comment and let me know what other resources have helped you with figuring out finances. I hope to post my snapshot documents on my website; however, if you wanted a copy to get you started, shoot me an email 🙂