Real-Life Math -- Solution
You have to figure out if $150,000 will cover your expenses for
the year.
Therapists: $42,000 x 2 = $84,000
Rent:
$1,000 x 12 = $12,000
Hydro: $200 x 12 = $2,400
Office
overhead: $1,500 x 12 = $18,000
Total: $84,000
+ $12,000 + $2,400 + $18,000 = $116,400
$150,000
- $116,400 = $33,600 left over
$33,600 / $150,000 x 100 = 22
percent
After covering all your expenses, you still
have 22 percent left for unforeseen costs. You can make it through the year.
Therapist
Nicole Gillis-Copping says therapists aren't always crazy about math and accounting.
"That was one of my little fears in going at it alone -- what am I going to
do with my accounting?"
Gillis-Copping's solution was to have her
accountant's assistant set up an accounting program for her.
"She
worked with me to set up what I needed to do," says Gillis-Copping. "And this
is coming from someone who really is bad at math, so if I can do it, I think
anyone can do it. It just took direction and a bit of a learning curve but
it wasn't anything that wasn't very doable. I do all my own accounting now
and it works pretty well.
"A little comfort with some numbers (would
be helpful)," Gillis-Copping adds. "It's not like it's complex."