{"id":74,"date":"2022-08-05T15:05:48","date_gmt":"2022-08-05T15:05:48","guid":{"rendered":"https:\/\/leichtercpa.com\/blog\/?p=74"},"modified":"2025-10-10T13:22:50","modified_gmt":"2025-10-10T13:22:50","slug":"building-the-right-reports-for-your-mental-health-practice","status":"publish","type":"post","link":"https:\/\/leichtercpa.com\/blog\/building-the-right-reports-for-your-mental-health-practice\/","title":{"rendered":"Building The Right Reports for Your Mental Health Practice"},"content":{"rendered":"\n
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Financial reports are an essential part of running a business and part of the <\/span>foundation for financial success<\/span><\/a>. They are also a great source of information for measuring your success and adjusting your strategy.<\/span><\/p>\n\n\n\n

But what core financial reports do you need for your mental health practice, and why do they matter?<\/span><\/p>\n\n\n\n

Financial statements or reports work similarly to KPIs in that they provide a picture of where you stand financially and can offer valuable insights into your company and a way to track your progress. <\/span><\/p>\n\n\n\n

That is why you should regularly generate these core financial statements to monitor your practice\u2019s financial health – <\/span>not just at tax time!<\/span><\/a><\/p>\n\n\n\n

Balance sheet <\/span><\/h2>\n\n\n\n

A balance sheet shows your assets (what you own), your liabilities (what you owe),  and your equity in the company at a specific date in time.<\/span><\/p>\n\n\n\n

The assets are then split into current and long-term assets. <\/span><\/p>\n\n\n\n

Current assets include cash and other assets that are expected to be (or could be) converted into cash within one year. And long-term assets are anything you may not be able to convert to cash, such as your office furniture.<\/span><\/p>\n\n\n\n

Current liabilities are the same and include debts expected to be paid within one year, such as accounts payable or payments on loans that will be paid in the year.<\/span><\/p>\n\n\n\n

The equity portion of the balance sheet is represented by<\/span><\/p>\n\n\n\n