Today on the Podcast: Simple Tax & Accounting Moves That Can Save PT Owners Thousands w/ David Light, PT
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About This Episode
In this episode of the Practice Marketing Podcast, Neil sits down with David Light, PT, co-founder of Healthcare Accounting Solutions — and the PT who actually purchased Neil and Amy's former Florida practice, AIM PT!
David shares his journey from building and acquiring practices to helping physical therapy owners take control of their numbers, reduce tax stress, and stop overpaying Uncle Sam.
We break down simple, practical tax and accounting moves that can save PT owners thousands — without needing to become finance experts.
Inside this episode, you’ll learn:
- The #1 simple tax move most PT owners miss
- 2–3 commonly overlooked expenses that cost clinics real money
- When it makes sense to switch to an S-Corp
- The biggest bookkeeping mistakes that create tax headaches
- What numbers to review monthly to catch profit leaks early
- How to structure owner pay (salary vs. draws) correctly
- A simple financial habit that makes year-end stress-free
- Where to find $10K in savings without seeing more patients
If you want to keep more of what you earn and run a financially stronger practice, this episode is packed with actionable advice you can implement immediately.
Connect with David on his website: https://www.healthcareaccountingllp.com/
Or via LinkedIn! linkedin.com/in/david-light458157
Listen Above or Read The Summary Here:
Mastering Financial Management: Key Accounting Moves for PT Practice Owners
Build a Strong Financial Foundation
Neil and David stress the importance of understanding your finances beyond just tax season. David advises, “Our advice to the large majority of clients is do your books yourself… If you disconnect yourself as an owner from that fundamental piece… that seems to be the first piece of a rift.” Staying involved in bookkeeping ensures you’re aware of every transaction and helps prevent costly surprises.
- Handle basic bookkeeping yourself until your practice grows large enough to justify outsourcing.
- Use the month-end process to review accounts and financial statements—aim for real-time, accurate monthly reports.
- Work closely with your accountant throughout the year, not just at tax time.
Neil points out that learning the language of finance is like learning medical terminology in PT school—it takes time and repetition, but it’s crucial for making sound decisions.
Unlock Hidden Savings & Avoid Common Mistakes
David highlights three areas where PT owners often lose money:
- Neglected Small Expenses: “The number one thing I see missed the most is not paying attention to all the littler or smaller items that add up in aggregate to a much larger deduction.” Track every expense—small amounts add up quickly.
- Retirement Accounts: Take advantage of retirement plan options to defer taxes. Even if setup costs seem high, the long-term savings can be substantial.
- Owning Your Building: “Strongly consider owning your own building and taking advantage of some of the tax savings that can be involved in that.” With cost segregation studies and advanced depreciation, this move can create significant tax benefits for established practices.
David also warns that the biggest tax-related pain point comes from neglecting regular check-ins: “The biggest thing we see… is that practice owners get so busy… they push off quarterly meetings with their accountant. That’s really where you start this divide.” Missing these check-ins can lead to nasty surprises—like a $37,000 tax bill due in two days.
- Schedule and keep quarterly meetings with your accountant—don’t let daily operations push these aside.
- Use the summer downtime for financial reviews and planning, not just spring tax prep.
Pay Yourself Properly and Plan for Growth
Neil and David discuss the complexities of owner compensation. There’s no universal formula, but David’s advice is clear: “You shouldn’t pay yourself nothing and just take everything out in an owner draw and you shouldn’t overcompensate yourself.” Instead:
- Set a salary that matches what someone in your role would earn in your region and specialty.
- Balance salary and distributions to optimize taxes and ensure steady, reliable income—even during lean months.
- Prioritize paying yourself first; don’t fall into the trap of paying staff and vendors at your own expense.
Neil adds, “Making sure that you have [your salary] baked into your normal payroll… is important. You might pay a touch more in taxes and that’s fine, but you’re still going to have a solid paycheck even when you may not be able to take a distribution.”
Leverage Experts and Stay Proactive
David likens using a financial expert to seeing a PT for a sports injury: “You’re paying for that knowledge and how it applies to you… Your gains are different than physically—they’re financially.” Don’t try to “DIY” complex tax strategy—work with professionals who understand the unique needs of PT practices.
- Choose an accountant who offers proactive analysis, not just reactive tax prep.
- As your practice grows, re-evaluate your accountant relationship to ensure you’re getting strategic advice, not just compliance.
Proactive financial management, regular analysis, and leveraging expert advice can prevent costly mistakes and position your PT practice for long-term growth and profitability.
Common Questions Practice Owners Ask About This Topic:
- What are common tax deductions for physical therapy clinics?
- How can PT owners save money on taxes?
- When should a business switch to an S-Corp?
- What bookkeeping practices help reduce tax stress?
- How to structure owner pay in a healthcare practice?
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