The Annual New Acupuncture Practice Review Checklist
A practical tax-focused checklist for new acupuncture practices to review finances, deductions, and compliance before year-end.
Running a new acupuncture practice means juggling patient care with business admin, and taxes often fall to the bottom of the list. But a quick annual review can save you money and stress. This checklist walks you through the key tax and financial tasks to complete before year-end, with concrete steps you can take this week.
Why an Annual Review Matters for Your Practice
As a new practice owner, you are now responsible for tracking income, expenses, and tax obligations that were previously handled by an employer. An annual review helps you catch missing deductions, avoid penalties, and plan for next year. The IRS expects self-employed practitioners to report all income and pay estimated taxes quarterly. Missing these can result in penalties, but a structured review keeps you on track.
Checklist Item 1: Reconcile Your Income Records
Start by comparing your bank deposits and payment processor reports (Square, Stripe, or similar) with your bookkeeping records. Your total income should match exactly. If you accept insurance, verify that all reimbursements are recorded. Use accounting software like QuickBooks or Xero, or a simple spreadsheet, to track every payment. Aim to do this monthly, but at minimum, do a full reconciliation before year-end.
This week: Download your year-to-date reports from all payment platforms and your bank. Flag any discrepancies for follow-up.
Checklist Item 2: Review and Categorize Expenses
Go through every business expense and ensure it is categorized correctly. Common categories for acupuncture practices include:
- Rent and utilities (if you have a dedicated space)
- Supplies (needles, herbs, disposables)
- Equipment (tables, lamps, sterilizers)
- Marketing (website, ads, flyers)
- Professional fees (accountant, attorney)
- Insurance (malpractice, business property)
- Continuing education (courses, seminars)
- Travel (if you do home visits or attend conferences)
This week: Pull your expense list and check for any uncategorized or mislabeled transactions. Correct them now to avoid errors later.
Checklist Item 3: Maximize Deductions Specific to Acupuncture
New practitioners often miss deductions that are unique to their field. Here are some to consider:
- Herbs and supplies: If you purchase herbs for resale or use in treatments, those are deductible as cost of goods sold.
- Licensing and certification: Fees for your acupuncture license, NCCAOM certification, and continuing education are deductible.
- Home office: If you treat patients in a dedicated home office space, you may qualify for the home office deduction. Measure the space and calculate the percentage of your home used exclusively for business.
- Business use of car: If you travel to patients or to buy supplies, track mileage. The standard mileage rate for 2026 is $0.67 per mile (check IRS updates).
- Professional development: Courses, books, and memberships in associations like the American Society of Acupuncturists are deductible.
This week: List all licenses, certifications, and memberships you paid for this year. Keep receipts for any supplies you purchased.
Checklist Item 4: Check Your Estimated Tax Payments
As a self-employed individual, you must pay estimated taxes quarterly if you expect to owe more than $1,000. The IRS requires payments in April, June, September, and January. If you have not been paying, you may face underpayment penalties. Use Form 1040-ES to calculate your payments. A common rule is to set aside 25-30% of your net income for federal taxes, plus state taxes if applicable.
This week: Review your payment history. If you missed a payment, increase your next payment to cover the shortfall. Consider working with a CPA to adjust your withholding.
Checklist Item 5: Evaluate Retirement Plan Options
Retirement contributions reduce your taxable income. As a solo practitioner, you have several options:
- SEP IRA: Contributions up to 25% of net earnings, max $69,000 in 2026 (subject to inflation).
- Solo 401(k): Allows employee and employer contributions, with a total limit of $69,000 plus catch-up if over 50.
- Traditional IRA: Lower limit ($7,000 in 2026, plus $1,000 catch-up) but easy to set up.
This week: Estimate your net income and decide if you can contribute to a retirement plan. Even a small contribution reduces your tax bill.
Checklist Item 6: Organize Your Records for Your Accountant
If you use an accountant, gather all documents now to make tax filing smooth. Create a folder (physical or digital) with:
- Income statements from all sources
- Receipts for major expenses
- Bank and credit card statements
- Records of estimated tax payments
- Any 1099 forms you received
This week: Set up a shared drive or folder and upload all year-to-date documents. Label them by month or category.
Checklist Item 7: Plan for Next Year’s Tax Obligations
Use this review to set up better systems for the coming year. Open a separate business bank account if you have not already. Consider using a bookkeeping service or software that automates expense tracking. Set a monthly reminder to reconcile accounts and file receipts.
This week: Schedule a meeting with a tax professional to discuss your specific situation. They can help you project next year’s taxes and suggest strategies.
FAQ
Q: What is the deadline for estimated tax payments? A: For 2026, payments are due April 15, June 15, September 15, and January 15, 2027. If a deadline falls on a weekend or holiday, it moves to the next business day.
Q: Can I deduct the cost of my acupuncture table? A: Yes, if it is used exclusively for your practice. You can deduct the full cost in the year of purchase under Section 179, or depreciate it over time. Keep the receipt.
Q: What if I did not make any estimated payments this year? A: You may owe penalties, but you can still file your return and pay what you owe. The penalty is calculated on the underpayment amount and is generally small. A CPA can help you minimize it.
Q: Do I need to charge sales tax on acupuncture services? A: It depends on your state. Some states tax acupuncture as a medical service, others exempt it. Check your state’s department of revenue website or ask your accountant.
The Bottom Line
An annual review is not just about filing taxes; it is about understanding your practice’s financial health. By following this checklist, you will catch missing deductions, avoid penalties, and set yourself up for a smoother tax season. Start with the tasks you can do this week: reconcile income, categorize expenses, and gather records. If you feel overwhelmed, hire a professional. The cost is worth the peace of mind.
Take action now, and you will thank yourself in April.