The chiropractic business must run perfectly for long-term success. The system includes how we pay our taxes, how and when the doctor gets paid, and how and when the staff gets paid. The payroll system in the office is critical.
I will have chiropractors join who pay themselves whenever they can. They have no set payroll system despite every other successful business in the world having one. But instead of talking about the problems that chiropractors have in how they get paid, let’s focus on our way of doing it.
We recommend your accountant handle all payroll tax deposits, federal tax deposits, state tax deposits, provider tax deposits, sales and use tax deposits, and tax returns.
We also recommend the accountant do all payroll because they already have access to all the numbers. We recommend your team get paid every two weeks. You get paid every week.
This is important for so many reasons we don’t have time to explain. The biggest reason is you want to increase the speed of money through the business into your personal lives. This is so you can get the money going towards debt and savings at a faster rate.
If you make a payment every week toward a debt versus every month, just imagine how much you will save in interest over the years. It is huge.
Also, when you get paid, set a clean amount of money. Like $2000 a week. Never $1765 or some other after-tax goofy number. We keep the clean number – the IRS can get the goofy number.
A chiropractor may start paying themselves $750 a week and then move to $1000 a week and go up from there.
You always want a clean number so you know exactly what you have to deal with for your automatic payments on a weekly basis. The goal for every chiropractor is to get to where they’re paying themselves $5000 or more after-tax every single week.
This is a target the chiropractor should have in mind. Chiropractors have never been taught things like this, except for here at WINNERSEDGE.
If you as a chiropractor can get to where you’re paying yourself $5000 after-tax every single week, you are on top of your game. This requires a significant amount of coaching, learning and training.
In summary, chiropractors should pay themselves a clean number every single week, with goals to increase it over time. Use your paycheck to set up your automations via online banking for debt elimination, savings and everything else we have on the WINNERSEDGE money flow system, leaving just the right amount left over for fun!