If your therapy practice is using an Accountable Plan, any reimbursements paid by the practice through direct reimbursement may be added to the appropriate Accountable Plan category on your profit and loss statement. Under the Accountable Plan, business-related expenses can be reimbursed by the business without being subject to taxes. Before categorizing a reimbursement, ensure that all IRS requirements for your Accountable Plan have been met by using Heard’s Accountable Plan template.
Accountable Plan Expense Categories
The following Accountable Plan categories are included as part of your profit and loss statement.
Please note: Reimbursements made through payroll should not be included in these categories.
- Accountable Plan: Cellular & Communication - Costs associated with communication tools, including phone services, used for business purposes.
- Accountable Plan: Internet - Costs of internet services used for your business.
- Accountable Plan: Mileage Reimbursement - Costs incurred for using a personal vehicle for business-related travel. The reimbursement is based on the IRS standard mileage rate, which is updated annually. It is recommended to keep track of mileage using mileage logs.
- Accountable Plan: Rent - If the business uses a portion of the rented property, such as a home office space, the rent is deductible based on the portion used for business purposes.
- Accountable Plan: Repairs & Maintenance - Costs for maintaining or repairing business property, equipment, or office space.
- Accountable Plan: Travel Expenses - Costs incurred for travel related to the business. This includes airfare, hotel expenses, transportation, and other accommodations.
- Accountable Plan: Utilities - Costs incurred for utilities paid by the business or reimbursed to business employees.