214 - Profitable But Still Broke: Where Your Practice Cash Is Actually Going

Your practice is making money. Your bank account doesn't seem to know it.

If that sounds familiar, this one's for you. A lot of practice owners hit a point where the numbers say "profitable" but the account always feels empty, and they can't figure out why.

My guest is Emily Bowie, a CPA and Cash Flow Strategist with more than 15 years of experience, including her time as an audit manager in Big Four accounting. She's the CFO at Thorne Advisors, where she helps therapists and other service-driven professionals find the money that's slipping out of their business.

We get into where practices quietly lose cash, why pricing is almost always the biggest leak, and what your balance sheet is telling you that your profit and loss isn't. Emily also shares the difference between the person who files your taxes and the person who actually helps you pay less. They're not always the same.

If you've ever looked at your books and thought "where did it all go," Emily will help you find the answer.

Key Takeaways:

• Get your books done monthly, not just at tax time. You can't fix leaks you can't see.
• Pricing is the biggest leak in most practices. If you've never checked your fees against your overhead, you're probably undercharging.
• Raise prices with new clients first, then bring existing clients up slowly.
• Run an expense audit at least once a year. For every expense, ask: what is this, do I still need it, and is it giving me a return.
• Keep personal and business spending separate. Mixing them muddies your numbers and adds liability risk.
• A tax preparer files your return. A tax strategist helps you lower the bill. They're not always the same person.

Links mentioned in this episode:

• Thorne Advisors
• Emily on Instagram: @emilyvbowie

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