Bom lesson plans_module_6

Module 6 – Managing Your Practice
6 Lessons
LESSON 1: Financial Management
Opening (5 minutes)
PPT-6 p.1 Welcome to Module 6: Managing Your Practice
>>Return the graded Module 5 quizzes<<
In Module 5, our focus was on helping you get off to a professional and prosperous start –
whether you decide to practice as an employee, subcontractor, or small business owner. In this
module, we’ll take it a step further – how to manage the business you’ve launched.
PPT-6 p.2 Lesson Objectives (Review objectives with students)
1. Describe the pros and cons of hiring professional bookkeeping or accounting services for
your business.
2. Identify four types of financial reports and their purpose.
3. Describe how to collect on an invoice if your client is slow to pay.
Financial Management (50 minutes)
Reference text pp. 166-181
Financial management is really about maintaining the financial health of your business – and it
largely comes down to effective record keeping.
How does it benefit your business to keep accurate financial records?
Look for:
First and foremost, financial records are a requirement of satisfying federal, state, and local tax
laws.
Can serve as early warning system to alert you of trends that might need to be corrected.
Can help you to identify which clients are the most profitable.
Can be useful in providing information to potential lenders, buyers of practice and/or investors.
Can be used to help satisfy client requests for payment information.
Critical in helping you to keep track of earnings and if clients owe money.
What are some guiding principles to keep in mind for effective financial management?
Look for:
Keeping financial records
Back-up
Document retention
>>Referring to pages 166-167, facilitate discussion on tips to keep on top of these 3 areas<<
Debating the Pro and Cons of Using a Bookkeeper. In our earlier discussion about hiring
professional assistance, you had the chance to talk briefly with your group about which types of
professional assistance you’re considering. One of the professions you discussed was
bookkeeping. Let’s take a moment to talk briefly about the pros and cons of hiring a bookkeeper.
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6 Lessons
>>Referring to Figure 6.2 on page 169, engage learners in a brief
discussion about the pros and cons of using a bookkeeper<<
Here are some questions to guide the discussion:
Referring to the pros and cons listed in Figure 6.2 on page 169, what do you think are the pros of
hiring a bookkeeper?
How about the cons, based both on the text and on your own experience?
Types of Financial Accounts/ What are the different types of financial accounts you’ll most
likely be using?
Look for: Checking account and credit account
What are the benefits and drawbacks to each?
Look for: Checking account is the simplest, safest, and most convenient – but limited to the
actual amount of funds in your account; credit account allows you to make larger purchases – but
can get you in trouble if you overextend
>>Ask a student to lead the class in a stretch<<
Creating a Budget. How many of you have a regular practice of creating and maintaining a
budget for your personal expenses?
>>Ask for a show of hands<<
What’s the purpose of a budget?
Look for: Provides a plan for how you will spend, save, and invest the money you anticipate
receiving – organized by category.
To help us in our discussion about a budget for business expenses, let’s start first with a
discussion about creating a budget for your personal expenses. What are the categories that you
might include in a personal budget?
>>Acknowledge responses and record on the left-hand side of
the board – creating a list going down<<
Now, let’s begin turning this into an actual budget, by creating columns to record what we’re
going to budget for each month – and then a final column to tally up total expenses within each
category at the end of the year.
Draw 13 columns across, identifying months of the year along the top and writing “Total Year” at
the top of the last column.
Lead learners in an exercise of estimating monthly costs for a few of the categories, recording the
projected expenses into the appropriate columns. With a category like “Groceries,” for instance,
you could ask learners if they might budget a higher amount during the holiday months.
Year 1 Budgeting. Now, let’s apply this exercise of creating a budget based on the estimates for
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6 Lessons
expenses that you’ve already come up with during Module 5.
>>Ask learners to pull out their Researching Costs Notes from Module 5<<
Please convene with your group and using the cost estimates that you already have, design your
business’ Year 1 Budget. Referring to Figure 6.3, on pages 171-172, create your Year 1 Budget.
I’ll give you 10 minutes to work on this as a group. Whatever you don’t complete during class
should be finished for homework.
Allow groups to meet and discuss for 10 minutes. Make yourself available to any groups that
might need assistance.
>>Call time after 10 minutes and debrief the exercise with the full group<<
>>Check in to see if there are any additional questions<<
Financial Reports. While your budget is your projection of anticipated expenses (based on
anticipated revenue) – your financial reports are your actual expenses and revenue.
What are the four basic kinds of financial reports you’re going to want to create?
Look for: ledgers, cash flow statements, income statements, and balance sheets
Referring to Figure of 6.5 on page 174, what’s the difference between each one?
Look for:
Ledger – shows all income and expenses; the basis for all financial statements; kept daily
Balance sheet – shows assets, liabilities and equity; updated quarterly or annually
Income statement – show revenues, expenses, profit; updated monthly and year-to-date
Cash flow statement – shows existing cash on hand, as well as income and expenses; projected on
a monthly basis
Finally, what do you use to request payment?
Look for: submit an invoice – or request for payment
>>Refer learners to Figure 6.10 on page 179 to view sample invoice<<
Wrap Up (5 minutes)
>>Go over homework<<
Finish up your Year 1 Budget.
DUE DATE: Module 6 – Lesson 3
Read pages 181-186. Begin with “Taxes” and stop before “Client Records Management.”
DUE DATE: Next class
>>Invite and answer questions before moving on<<
LESSON 2: Taxes
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6 Lessons
Opening (5 minutes)
1. List the types of taxes for which your business is liable.
2. Identify at least five deductions that you might be able to claim on your income tax.
Taxes (50 minutes)
While I’m not a certified public accountant, and therefore am not qualified to give you specific
tax advice, we can still have a general discussion about taxes.
In Module 5, we talked about the three different legal structures for a business. What are these?
Look for: Sole proprietorship, partnership, corporation
Each of these, as you know, has different tax implications.
Let’s back up for a moment, though. Let’s say you’re an employee. What’s involved in filing
taxes?
Look for: Employer withholds taxes; using the W2 form that you receive from your employer at
the end of the year, you fill out your tax return; depending upon other income, exemptions,
deductions, and other credits, you either pay more money or get money back
As you know, it’s more involved when it comes to filing taxes when you are a business owner
instead of an employee.
Before we get into a deeper discussion about what’s involved, I’m going to share a couple of
stories of why it’s always a good idea to keep on top of your taxes – especially as a business
owner.
The first story is about Jim, a massage therapist who decided he would pocket most of his cash
receipts instead of reporting it all to the government. Jim did fine for a few years. His massage
therapy business prospered in spite of his unethical business practices. In fact, he did so well, he
decided to expand into a larger space.
Doing so, however, meant that he needed to borrow money. So, he went to the bank and talked
with a loan officer.
“We’d love to loan you some money,” the loan officer said after hearing Jim talk about how
prosperous his business was. “Just bring in your income statement, balance sheet, and record of
your business checking deposits over the past 2 years, so we can make sure that you can afford to
repay the loan.”
Well, as it turns out, Jim’s books didn’t reflect his “prosperity,” because he had been hiding some
of his income. On paper he instead looked like a small-time operator. The loan was denied.
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6 Lessons
Then, there’s the story of Becky, a massage therapist who put paying her estimated tax and end-
of-year taxes at the bottom of her to-do list. Although she was supposed to pay $2,000 per quarter
in estimated taxes, she spent the money on other things.
After a few years of penalties, late filing fees, and extended payment plans, the IRS had had
enough. One day Becky went to her bank to withdraw $100 from her savings, but her savings
were no more. The IRS had garnished her account to cover all of her outstanding late taxes,
penalties and late fees.
Pair Share. Turn to a partner now and share two things: (1) a taxes horror story that you’ve heard
of (or experienced) and (2) a tax or record-keeping tip, such as a way to streamline your record
keeping, deduct business-related expenses, or even the name of a good accountant that you know
of.
Allow 3 minutes and then call time. Ask learners to switch. Call time after an additional 3
minutes.
>>Debrief with the full group<<
Let’s hear about some of the tips that you all came up with.
>>Record all suggestions on the board – and discuss each<<
General Guidelines for Taxes. In order to avoid any of these bad situations, let’s talk about what
you need to do instead.
If you are self-employed, or are an independent contractor, and if you earn more than $400 a
year, what must you do?
Look for: pay your own federal, state, FICA, Medicare and self-employment tax; file quarterly
estimated taxes
When do you need to pay your quarterly estimated taxes?
Look for: April, June, September, January – using a 1040-ES form
If you are incorporated, you must also file a corporate tax return.
What are the types of taxes you need to pay?
Look for: FICA, self-employment tax, profit & loss, sales tax
What are the forms you will need to fill out – for each of the three legal structures?
>>Write up the checklist below on the board (and referring to page 186
in the text, define what each form is)<<
Sole Proprietorship Partnership Corporation
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Form 1040-ES
Form 1040
Schedule C
Schedule SE
Form W2 – for any
employees
Form 1099-MISC – for
any payments >$600 to
independent contractors
Form 2106
Form 1040-ES
Form 1040
Schedule K1
Schedule SE
Form W2 – for any
employees
Form 2106
Form 1040-ES
Form 1040
Form 1120
Form W2 – for any
employees
Form 2106
What are the kinds of deductions you can claim?
Look for:
Office and massage-related supplies
Cost to acquire items
Subscriptions
Fees for professional assistance
Credit card fees
Bank account fees
Wages for employees and fees to independent contractors
Home office expenses
Insurance
Telecommunication charges
Computer service chares
License fees
Property tax, sales tax, business tax
Depreciation of fixed assets
Rent/mortgage payments
Utilities for office space
Linen and/or cleaning service
Uniforms
Gifts to clients
Travel expenses
Meals (limited)
Membership dues
Conference attendance fees
Continuing education fees
Books and resources
Debating the Pro and Cons of Using a Professional Accountant. Another profession that you
discussed with your group about hiring for professional assistance was accounting. Let’s take a
moment to talk briefly about the pros and cons of hiring the services of an accountant. While the
text definitely leaned toward the pros of hiring an accountant, let’s take a moment to examine
both sides.
What do you think are the pros of hiring an accountant?
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6 Lessons
>>Allow discussion to continue for a few minutes<<
Asking the Right Questions. Even if you’re planning to hire a professional accountant, it’s still
important that you know the basics of taxes so that you can ask the right questions.
When you’re looking to hire an accountant, what are some questions that you should ask?
>>Record suggestions on the board<<
Some examples of questions to include:
Do you have any other massage therapists as clients?
What are your terms?
If I incorporate, how much do you charge for doing my quarterly books?
How should I set up my filing system?
What will I need to send to you and when?
Will I need to pay estimated tax?
How can I avoid being audited?
Role-Play. To practice this, let’s do a quick role-play. I’m going to play the role of the
accountant. Who would like to volunteer to interview me?
Set up the role-play. Place two chairs in the front of the room. The volunteer will play the
interviewer and you will play the accountant. The rest of the class will observe.
>>Begin the role-play. Let the conversation continue for 5 to 8 minutes<<
>>Applaud the volunteer<<
Debrief the interviewer. Ask how he/she felt during the interview. Debrief with the full class. Are
there any other questions they might have added on?
Wrap Up (5 minutes)
Read pages 187-210. Begin with “Client Records Management” and stop before “Time and
Schedule Management.”
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6 Lessons
LESSON 3: Client Records Management & Insurance
Billing
Opening (5 minutes)
1. Describe the types of client records you must maintain.
2. Describe the issues for and against accepting client insurance payments.
Client Records Management (30 minutes)
In addition to keeping records about your money, you will also need to keep careful records of
your clients. This begins with the client intake form.
>>Direct learners to Figure 6.16, pages 190-192<<
This is a sample form – which you can use as a template for creating your own client intake forms
for your practice.
What’s the purpose of a client intake form?
Look for:
Minimize malpractice liability
Clarify your professional boundaries
Clarify why client is seeking massage therapy
Key points to cover:
Informed consent agreement
Client release of information agreement
Financial responsibility
Record of client visits
Informed Consent Agreement. Informed consent agreements are basic to ethical standards
within the profession of massage therapy.
How does this serve the client?
Look for: Protects the client’s right to have professional services, credentials, and products
explained; supports their responsibility to respect the business practices of the professional and to
actively participate in the healing process
How does this serve the massage therapist?
Look for: Protects their right to know information about the client to determine whether or not
massage therapy is the correct therapeutic service; supports their responsibility to inform client of
benefits, limitations, contraindications, possible outcomes of work
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6 Lessons
>>Refer learners to Figure 6.17 on page 193 to view sample
informed consent form (simplified)<<
SOAP Notes. What does SOAP stand for?
Look for: Subjective, Objective, Assessment and the Plan
SOAP notes were developed by Dr. Lawrence L. Weed in the 1970s and have become widely
used in health care. SOAP notes provide a consistent, objective method of recording a massage
client’s needs, the work provided in each session, and the client’s progress.
Why should a massage therapist bother with SOAP notes?
Answer: If the client is healthy and is seeking massage just for relaxation, your SOAP notes do
not need to be as thorough. However, if a third-party insurer is paying for the massage therapy, or
if the client was referred to you by a licensed health-care provider, SOAP notes are necessary.
In either case, it’s always a good idea to keep good records – using a system that is widely
known. Another benefit of using SOAP notes, in fact, is that they help to bridge the gap between
the field of massage therapy and the health-care community. If you speak their language, health-
care professionals are more likely to respect you. We’ll touch again on the importance of using
the same language in Module 8 when we discuss forming professional relationships with allied
industries.
Let’s break down each of the letters in SOAP.
Who is the actor in the “Subjective” step?
Answer: The client. This is where we record the client’s subjective complaints and functional
goals, including symptoms and affected activities.
When does this step occur? Before the massage, during the massage, or after the massage?
Answer: Before the massage begins.
Who can give me an example of a client’s subjective complaint?
>>Acknowledge answers and correct any, if need be<<
Who is the actor in the “Objective” step?
Answer: The massage therapist’s objective findings and recommended plan.
When does this step occur?
Answer: Primarily it occurs before and during. It includes observations before the massage – or it
could occur during the massage, through palpation or range-of-motion testing.
Who is the actor in the “Assessment” step?
Answer: Both. The massage therapist is actually recording the client’s subjective change, such as
“My shoulder doesn’t hurt anymore.” Plus the massage therapist records his/her own assessment
of objective changes.
When does this step occur?
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6 Lessons
Answer: After the particular area has been massaged or after the massage itself.
Who is the actor in the “Plan” step?
Answer: Primarily the massage therapist. The massage therapist generates both a plan for future
care; as well as the client’s self-care plan (although the latter is dependent upon the client to
actually execute the self-care plan).
>>Refer learners to Figure 6.19 on page 196 to view sample SOAP chart<<
Client Insurance Billing and Reimbursement (20 minutes)
Debating the Pro and Cons of Seeking Insurance Reimbursement
>>Referring to Figure 6.21 on page 198, engage learners in a brief discussion
about the pros and cons of seeking insurance reimbursement<<
Referring to the pros and cons listed in Figure 6.21 on page 198, what do you think are the pros
of seeking reimbursement?
What would be your inclination as a business owner – to seek reimbursement or not?
>>Create a quick human graph – with those inclined to seek reimbursement
on one side of the room and those disinclined to on the other side<<
Now, please convene with your group and decide whether or not the business that you are
creating will or will not seek reimbursement.
>>Give groups a few minutes to discuss and then elicit a quick discussion<<
If your group has decided to seek insurance reimbursement, please stand – and then have a seat.
If your group has decided to not seek insurance reimbursement, please stand – and then have a
seat.
Regardless of whether or not you decide to pursue insurance reimbursement, it’s important to
know the terminology.
>>Review insurance reimbursement terminology, outlined in
“Spotlight on Business” on page 203<<
What does each of these mean?
Assignment of benefits
Initial evaluation/reevaluation form
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Payment agreement
Prescription
Release of records
>>Define each as a group<<
Learning how to work within the medical and health insurance system can be cumbersome, but
let’s take a quick look at what a typical health insurance claim looks like.
>>Refer learners to Figure 6.23 on page 204 to view sample health insurance claim form<<
Remember that as a massage therapist, you are going to need to have professional liability
insurance. What’s the standard in massage therapy?
>>Look for: $2 million per occurrence, with $6 million aggregate<<
There are a number of types of insurance coverage we should be familiar with as massage
therapists, since these sometimes may be used to cover massage therapy services. What are these?
Look for:
Auto & personal injury
Workers’ compensation
Health insurance
Self-insured employer plans
Discount plans
>>Referring to pages 199-202, review each of these types of insurance<<
Any questions on any of these forms or types of insurance before we wrap up for the day?
>>Respond to questions or comments<<
Wrap Up (5 minutes)
Read pages 210-214. Begin with “Time and Schedule Management” and stop before “Human
Resources Management.”
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LESSON 4: Time & Schedule Management
Opening (5 minutes)
PPT-6 p.5 Lesson Objectives (Review learning objectives)
1. Identify effective time management tips.
2. Identify strategies for effective management of the work environment.
Time Management (30 minutes)
Pair Share. Turn to a partner and share tips on how you manage your time, both personally and
professionally. Each of you will get 2 minutes.
>>Call time after 2 minutes<<
>>Call for partners to switch and then call time after an additional 2 minutes<<
Now, based on your Pair Share discussion, I’d like the two of you together to draw up a list of
suggested tips to manage time – both at home and at work. Just write these out on a regular piece
of paper.
>>Allow 4 minutes for partners to create lists of tips. After 4 minutes, ask for a sharing of
ideas with the full group.<<
>>Record tips on the board<<
Add on the following (if they are not already on the list):
Weekly activities list
ABC ranking
Scheduling
A-level tasks
B-and C-level tasks
Reevaluation
Training people on how to manage their time better is a multi-million dollar business. It largely
comes down to creating systems that will work for you. This often involves a trial-and-error
process. Once you find tricks that work for you, discipline yourself to follow these.
Radical Time Management. Let’s do an activity to address this topic further. When it comes to
time management, the usual way is to say to yourself, “First I’ll schedule all my work obligations.
Then, if (and only if) there’s time left over, I’ll squeeze in 10 minutes of fun.”
>>Set up the individual writing exercise<<
>>Ask everyone to get out a sheet of blank paper and pen<<
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Here’s what I’d like you to. On your piece of paper, make 2 columns – the left one should be
wide, and the right one should be narrow, just wide enough to put a number in it.
In the left column, write down all your current time commitments, including sleep. Every activity
that takes up some of your time. Imagine if someone were watching you from another planet –
what would they see you doing?
In the right column, next to it, estimate how much time per week you currently spend on that
commitment. It doesn’t matter in what order you write them. For instance, you might write:
“Wash, fold, and put away laundry – 1½ hours”
“Enter finances into Quicken – ½ hour”
“Work – 43 hours”
“Talk to mom – ½ hour”
“Sleep 7 hours/night – 49 hours”
“Shower and shave – 4 hours”
“Help Megan with her homework – 2 hours”
Draw a line at the bottom of your list when you’ve finished writing down every current
commitment you can think of. Below the line, write down the things you wish you had time for
but are currently not doing. Remember, the times are per week. Some of these activities may
include personal self-care activities – that we discussed in Module 4. Effective time management,
as we touched on in Module 4, is one of the best tools to take care of ourselves – since it opens up
more time to engage in the kinds of activities that truly nourish us.
Perhaps you might write:
“Paint the kitchen – 6 hours”
“Do tai chi 15 minutes/day – 1½ hours”
“Write in my journal for 15 minutes/day – 1½ hours”
>>Direct learners to begin. Call time after 5 minutes<<
>>Distribute Radical Time Management Worksheet<<
HO 6-1
Now, here’s the radical part. Make out a schedule for the next week of your life.
1. Schedule sleep first. How much does your body need in order for you to feel vital, rested, and
happy? Fill it in.
2. Next, schedule the fun stuff – however, you define the fun stuff. While some people consider
painting the kitchen a chore, others consider it a delight. You decide. If you want to do an
hour of tai chi on Monday, Wednesday, and Friday mornings, block out a 1-hour band on
those days for that. If you want to go to a movie on Saturday night, block out time for that.
3. Next, schedule the activities that give your life meaning – however you define that. Maybe
it’s volunteer work at a hospice, walking your dog, hanging out with your significant other, or
helping Megan with her homework.
4. Next, schedule the life maintenance items that are unavoidable – grocery shopping, getting a
haircut, doing dishes, paying your bills, going to the doctor, buying stamps.
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Give learners 5 to 10 minutes to fill out the schedule in class. Explain that they will turn in their
Radical Time Management Worksheet at the beginning of next class – and will have a chance to
talk further about it.
>>Call time after 5 to 10 minutes, depending upon how much time they seem to need<<
How much time is left in your week? Count up the hours.
>>Give learners a chance to count<<
How many hours do you have open in your schedule?
>>Ask learners to call out the number of hours>>
That’s how much time you have available to devote to your massage business.
Do you see any benefits to adopting this approach to managing your schedule?
>>Acknowledge all responses<<
Just as we discussed in Module 4, when we take time to engage in activities that nourish us and
when we intentionally schedule these, then we become more effective when we are working.
You’ll exude vitality instead of fatigue, and a keen ability to listen to your massage clients instead
of distractedness.
Do you think that this way of doing a schedule is realistic?
>>Acknowledge all answers<<
Personal Reflections. Let’s take a few minutes to reflect on this activity – and the concept of
time management – in our journals. Use the following questions to guide your writing:
Again, what matters to you most in life?
How are you going to manage your time effectively so that you can continue to engage in
activities that matter to you?
Especially given the time pressures you’ll face upon entering a new career, how are you going to
manage your time?
>>Give learners a few minutes to write and then bring journal writing to a close<<
>>Elicit any comments afterwards<<
Appointment Schedules (10 minutes)
How many of you use some kind of scheduling system or device?
>>Acknowledge all answers<<
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As a massage therapist, you’re going to not only keep a schedule of your own life – but you’re
also going to need to keep a record of client appointments. What are different systems that you
can use?
Answers could include: paper calendar, online calendar, appointment book
What’s important is that you keep track – and stay on top of your appointment schedule.
What are some tips to make scheduling easier?
Look for: Offer only two options, i.e., “Morning or afternoon?”; keep space in appointment book
to mark changes; use different colored pencils
Most often, the scheduling will take place over the phone. What are some tips to handling phone
calls?
Look for:
Use voicemail.
Smile when leaving outgoing message – and listen to it before saving it.
Return calls within 24 hours.
Use an answering service.
Use software to allow clients to book online.
Mute ringer during appointments.
Hire a receptionist during busy hours.
The Automated Office (10 minutes)
What are some software packages that you know of that are specifically tailored to massage
therapy businesses?
Look for:
Customer Pro-File Massage Management Software
Cassowary Massage Office Management Software
EasyTabs, For Independent Massage Therapists
ManEdger Management Systems (Canada)
Massage Manager
Massage Office Professional
What are the common features of each of these?
Look for:
Client manager
Calendar scheduler
Expenses
Gift certificate
Supplier management
Reports
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Mailing labels
Now, taking a look at the “Real Touch” story on page 213, discuss with your group the level of
automation you’re shooting for in the business you’re developing. As a group, read over the story
– and then discuss what you think is best for your business. I’ll give you 5 minutes to discuss –
and remember to take notes (and date it)!
Wrap Up (5 minutes)
Finish up your Radical Time Management Worksheet.
If your group has decided to go the automated route – or is even considering it, tonight, you’ll
need to research the different software packages available. Look into pricing, available features
and convenience. Be ready to present on what you found for the next class.
Read pages 214-222. Begin with “Human Resources Management” and read through the end of
the chapter.
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Lesson 5: HR Management, Being and Employee
Opening (10 minutes)
Pair Share. Let’s take a couple of minutes to share both the Radical Time Management schedule
that you designed – along with your experience in trying it out between last class and this one.
You’ll each get 2 minutes to share.
Direct learners to share thoughts with a partner. Call time after 2 minutes.
Switch. Call time after an additional 2 minutes.
>>Encourage any sharing out afterwards<<
1. Identify legal considerations that affect you if you have employees.
2. Describe how your massage practice is like your own business even if you are not self-
employed.
Human Resources Management (20 minutes)
Establishing Employee Policies
HO 6-2 Convene with your group and using the Employee Policy Setting Worksheet, decide what the
employee policies will be for your business.
>>Distribute Employee Policy Setting Worksheet – one per group<<
Allow groups to discuss for 5 minutes. Ask for a report out from each group.
I won’t be collecting these as homework. However, remember to (1) incorporate what you came
up with in your business plan and (2) include this actual worksheet in the appendix to your
group’s business plan.
Being an Employee (10 minutes)
Even if you decide to be an employee as opposed to a business owner or independent contractor,
you are still going to need to develop a similar skill set.
What are some of the skills that are required, even as an employee?
Look for: managing client relationships, goal setting, abiding by laws and regulations
Whether you work for yourself – or someone else – you’re going to need to create a business plan
to follow. You already touched on a number of these when you filled out your Individual Career
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and Practice Planning Worksheet – and you are continuing to address all of these areas in
working with your group in designing your business plan. But, let’s review each, briefly.
Review:
Goals and objectives
Laws and regulations
Business structure
Services and products
Pricing and marketing
Physical space
Business policies and procedures
Hiring
Financial
Wrap Up (20 minutes)
HO 6-3 Insights From the Experts. As a way of wrapping up both today’s class – and in approaching
the end of Module 6, let’s hear some words of wisdom from experts in the field.
Allow learners to stay with their group.
Distribute one “quote slip” to each group.
Remind learners to assign roles, as always.
After the facilitator in your group reads the quote aloud, I’d like each group to engage in a
discussion, addressing the following questions:
What are the main points?
What do you think about their perspective?
Do you agree? Why or why not?
Is there anything you would add on?
What are insights you gained by reading and discussing this quote?
As a group, take 3 minutes to discuss your quote – and then please be ready to share both the
quote and 1 insight you gained by discussing the quote.
Review Chapter Six, in preparation for Chapter Quiz.
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LESSON 6: Summary & Application
Opening (10 minutes)
Automated Office Software System Report Outs. Now, let’s hear a quick report out from each
group about which system you decided to go with – giving us a quick overview as to why you
selected this particular system.
>>Elicit a quick report from each group<<
1. Review key points in Module 6.
2. Demonstrate acquired knowledge with short quiz.
3. Apply knowledge by working on elements of Final Project.
Chapter Review (15 minutes)
>>Direct learners to the review questions at the end of Chapter 6, page 222<<
>>Lead a discussion on each of the questions. Possible answers are given below<<
Reference text p. 222
The chapter review questions provide an opportunity to refresh learners’ memories about their
textbook reading.
1. What basic financial business records and statements are relevant to the management of
a massage therapy practice?
- Business records: budgets, ledgers, invoices, mileage log.
- Financial statements: balance sheet, income statement, cash flow statement.
- Tax returns.
2. How could you handle collecting a bill from a client who is overdue in paying you?
- Consider your options – and whether or not you’re better off financially to spend the time
with another client.
- If the bill is large – contact a collection agency.
- Wait to reschedule client until bill is paid in full.
3. What types of taxes does your business have to pay and when are they due?
- FICA
- Self-employment tax
- Profit & loss
- Sales tax
- Quarterly taxes – due April, June, September, January
4. What are five business-related tax deductions you might be able to claim on your
income tax return?
- Office and massage-related supplies
- Cost to acquire items
- Subscriptions
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6 Lessons
- Fees for professional assistance
- Credit card fees
- Bank account fees
- Wages for employees and fees to independent contractors
- Home office expenses
- Insurance
- Telecommunication charges
- Computer service chares
- License fees
- Property tax, sales tax, business tax
- Depreciation of fixed assets
- Rent/mortgage payments
- Utilities for office space
- Linen and/or cleaning service
- Uniforms
- Gifts to clients
- Travel expenses
- Meals (limited)
- Membership dues
- Conference attendance fees
- Continuing education fees
- Books and resources
5. Name three advantages to hiring a professional accountant to assist you with financial
and tax management.
- Help you set up a financial record-keeping system.
- Highlight areas of financial vulnerability so you can take corrective action before it’s too
late.
- Prevent your business from paying higher taxes than necessary.
- Reduce your chances of being audited.
- Free your time so you can spend it on giving massages.
6. What client records are necessary to your massage practice?
- Client intake form
- Client informed consent agreement
- SOAP notes
- Client telephone log
- Client visits and billing record
7. What communications strategies are appropriate for networking effectively and
building relationships with other health care professionals in the care of shared clients?
- Send letters of introduction.
- Follow up with professionals.
- Provide education about massage therapy licensure, training and experience, efficacy of
massage.
- Explain how you measure the success of your work.
8. What are the pros and cons of accepting client insurance reimbursement?
Pros:
- Provides access to potentially large client base.
- Medically prescribed massage may be billed at higher rate.
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6 Lessons
- More people could receive massage therapy, and more often.
- May be required if you’re working in a hospital or clinic.
- Increases access to those who wouldn’t otherwise be able to afford.
- Opportunity to increase your knowledge base, especially if working with chronically ill
or injured clients.
Cons:
- Have to learn to work within medical system.
- Thorough documentation required.
- Requirements that need to be met, such as timeliness.
- Type of care you provide may be dictated by insurance company or referring physician.
- Denials, delays, adjustments and reductions often occur.
- Can be daunting working with chronically ill or injured clients.
9. What factors should you consider when choosing the best method for clients to make
appointments?
- Depends upon complexity of your business.
- Depends upon preference of clients.
- Depends upon whether you have employees who are scheduling appointments.
10. What legal considerations affect your business if you have employees?
- State and federal health laws
- FICA taxes
- Overtime pay
- Federal/state unemployment taxes
- Workers’ compensation insurance
11. How is managing a business you own similar to managing your massage practice as an
employee of another company?
- Still use many of the same skills, such as: managing client relationships, goal setting,
abiding by laws and regulations.
Is there anything else that we discussed in this module that you’d like to review before we begin
the quiz?
>>Respond to questions by facilitating a discussion,
encouraging learners to help each other in responding to these questions<<
Quiz 6 Quiz (10 minutes)
>>Distribute quiz. Give learners 5 minutes to complete<<
Collect quiz and explain that you will return them at the start of Module 7.
Application (25 minutes)
I am now going to give you time to meet with your group to continue working on your business
plan. Having completed Modules 5 and 6, you have enough information and expertise to begin
addressing the following additional sections of your group’s business plan:
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6 Lessons
“Organization and Management”
“Financial Management”
Here’s a reminder of what each of these areas should cover:
Organization and Management. This section should include the following:
Description of how your company is organized;
Description of the legal structure of the business;
Identification and overview of required licenses and permits;
Brief bios of all key players in the company (everyone in your group).
After reviewing this section the reader should know how the company is organized, its legal
structure, the roles that everyone plays in the company and an understanding of the flow of
operations.
Financial Management. This section should include the following:
Estimate of start-up costs, including one-time, annual and monthly expenses;
Projected revenue (one year forward)
After reviewing this section the reader should know your company’s financial projections.
Wrap Up (5 minutes)
Bring in magazines that have lots of great images. They don’t have to be related to massage
therapy.
Read pages 223-233. Begin with Chapter Overview and Objectives and stop before
“Advertising.”
22

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