Financial Recordkeeping for Medical Transcriptionists - dummies

Financial Recordkeeping for Medical Transcriptionists

By Anne Martinez

Recordkeeping isn’t just important for medical transcriptionists come tax time — it empowers you to make the best choices for you and your business. Good records help you pay your bills on time and serve as your financial memory. Need another reason? It also helps you cut your tax bill.

As an IC, you get to deduct business-related expenses from the money you pull in before you pay a penny in taxes, like this:

revenue – expenses = net income (what you pay taxes on)

Revenue is the sum total of all the payments you receive, whether from one client or a dozen. Expenses are the sweet spot where you get to deduct the cost of things that you needed to operate your business. It includes things like

  • Part or all of your Internet connection cost

  • That new ergonomic keyboard and the mileage you drove to go get it

  • The price of the bookkeeping software you purchased to track business finances

  • Fees you pay an accountant to prepare the business portion of your tax return

  • The cost of your trip to the AHDI annual conference and expo

  • Other business-related stuff

Your recordkeeping system needs to

  • Delineate personal and business expenses

  • Track the data you need for tax purposes

  • Produce reports whenever you need them so you can see where you’re headed and remember where you’ve been

It needs two parts:

  • A tracking/reporting system

  • Organized storage for the check stubs, receipts, and other documents that back up your numbers