Hi Reader,

Profit and loss reports are helpful—but they don’t always give the full picture.

Maybe your income looks solid on paper, but you’re still wondering...

“Where’s the cash?”

“Why don’t I feel more financially secure?”

“Am I doing well… or just getting by?”

Here are 3 reports worth reviewing regularly to better understand your financial health:

1. Statement of Cash Flows

This shows how money moves in and out of your business—not just what was earned and spent. If your P&L looks good but your bank balance doesn’t, this report can help you understand why.

2. Balance Sheet

This report captures your assets and liabilities (like savings, credit card debt, or taxes owed). It gives a more complete snapshot of what your business owns and owes.

3. Budget vs. Actual

This comparison can help you see where you’re over or under spending so you can adjust accordingly. Even a simple budget helps keep spending aligned with your goals.

Financials aren’t just for tax time. They’re tools to help you make better decisions every day, like how much to pay yourself, when to raise rates, or whether you’re ready to grow.

The Update: News for Your Practice

1) How insurance woes are impacting mental health care​

Many therapists are stepping away from insurance networks due to low pay, excessive admin, and delayed payments—making it harder for clients to access care. The APA is pushing for changes to improve mental health parity and ease the burden on providers.

2) Ethical guidance for AI​

AI tools are showing up in therapy practices—from note transcription to client engagement—but they come with ethical responsibilities. New guidance from APA offers practical tips to help you use AI responsibly while protecting client trust, privacy, and equity.

3) New Car Loan Tax Deduction: Who Qualifies​

A new proposal in the U.S. House aims to let borrowers deduct auto loan interest from their taxes. While it could offer savings, not all vehicles or buyers would qualify, so if you're planning to buy a car, there are key details to understand.

Talk soon,

Emily

P.S. Want help reviewing your numbers or making a plan? Reply to this email—I’d love to support you :)