Outsourcing Bookkeeping for Therapists: A Guide to Streamlining Your Practices Finances

Read the below case study on opportunity cost, which is a great gauge for when it’s right to hire someone, from a financial perspective but also in regard to your quality of life. Calculating your bookkeeping for therapists own financial opportunity cost is quite straightforward, so give this a read if you want to find out more. I help business owners eliminate the barriers to growth and take their company to the next level. If you want simplicity, Wave Accounting offers a simple and easy-to-use interface at no cost. QuickBooks offers several subscription options tailored to different needs.

How to Take Time Off as a Therapist in Private Practice

Wave does not integrate with any practice management or EMR/EHR tools. That being said, QBO has a steeper learning curve than other options, costs more, and may come with a load of tools you never use. In that case, it’s worth comparing to Xero and Wave, the other options on our list. Lacking integration, your only other options are to manually enter the transactions in your software and/or to import them from your bank account. Get done-for-you monthly bookkeeping and easy-to-understand financial reports. You might save a few pennies for each transaction, but you (or your team) will spend a whole lot of time recording the payments in your EHR.

How much does it cost to have a personal bookkeeper?

• Additionally, ensure your chart of accounts is set up properly for a therapy practice.
• Accounting software is no replacement for human bookkeepers and accountants.
• For bookkeeping and accounting purposes, each of these financial statements is generated on a monthly or quarterly basis.
• Some therapists may worry that cloud-based software means that sensitive data is accessible to hackers.

With an organized process in place, you’ll know exactly when and how you can afford to expand. Plus, it integrates seamlessly with your bank account, making bank reconciliations a breeze. Zoho Books integrates seamlessly with other Law Firm Accounts Receivable Management Zoho apps, making it a one-stop-shop for all your business needs. Plus, the income statement page provides information on everything from expenses to profits, so you’re always in the know. However, the Early package also features a hard limit on the number of invoices you can send per month, and the number of bills. That may or may not be a problem, depending on how you charge clients.

• We collect information from you so that we can set up your QuickBooks account.
• Let us take care of your books, so you can get back to what you do best.
• Golden Apple Agency offers professional accounting and bookkeeping for therapists and physical therapists.
• As a therapist running a private practice, maintaining an organized and efficient accounting system is crucial to the success and …

„QuickBooks for Small Business Lawyers: Trust Accounting and Time Billing“

• So, here are the 5 best accounting software you can use as a therapist.
• Use this cheatsheet to maximize your deductions and save money on taxes for your therapy practice.
• That includes a general ledger that lists all your transactions, plus monthly financial reporting.
• When you bill a customer, you’ll need to manually enter it into accounts receivable using your accounting software.
• Using software is no substitute for hiring a qualified bookkeeper or accountant.

If your budget does not allow for an additional $30-$60 per month expense for a QBO subscription, consider the alternative software mentioned above. As a therapist running a private practice, maintaining an organized and efficient accounting system is crucial to the success and … Choosing a business structure is crucial, as it shapes how you draw income. Strategic tax planning is essential when choosing a business structure to maximize deductions and optimize retirement contributions. Common structures include sole proprietorships, LLCs, and S-corporations. For instance, an S-corp allows owners to draw a reasonable salary while also taking distributions, which can provide tax benefits.

With over 800 add-on apps and integrations available, you can customize Xero to fit your exact needs. Whether it’s for accounting, IT, practice management, or communication solutions, Xero has got you covered. At Therapeutic Tax Solutions, we specialize in providing comprehensive bookkeeping, tax preparation, tax planning and business advisory services to therapists who own their own practices. Our commitment goes beyond payroll numbers; it’s about helping therapists achieve financial peace of mind.

Why therapists should consider outsourcing bookkeeping

If the bulk of your income comes from recurring billing of clients, and you’re already taking care of that using a practice management or EMR/EHR system, you won’t be charged anything extra. Accounting software can be a huge asset for your therapy practice, giving you the tools and information you need to track the financial health of your business and prepare for tax season. Whether it’s understanding the nuances of tax laws, selecting the right bookkeeping software, or planning the financial future of your practice, a CFO or business coach can be a trusted ally.

Integrating Software with Practice Management Systems

• With online, you’re not tied to just that home computer desk to do your books.
• In comparison, when you hire a bookkeeper, they make entries into your general ledger for you, and keep your books up to date.
• When setting up your Chart of Accounts, it’s important to strike a balance between granularity and simplicity.
• It may take some experimentation to determine what kind of workflow works best for you, and your results will vary depending on the accounting software you use.
• Simply book an appointment to chat with one of our accountants, and we can get you set up with the best software for your business.
• On the other hand, software like Xero provides an intuitive and simpler user experience.

This also means you have more flexibility with your bookkeeper and tax professional. With online, you simply invite them via email to look at your books. And that means they can instantly access your books from their own devices/office, etc.

It’s a complete accounting and bookkeeping software suite that is easy to use and offers all the features needed to run a therapy practice. In summary, QuickBooks proves to be a highly beneficial tool for therapists looking to manage their finances efficiently. Its user-friendly interface, robust features, and strong integration capabilities make it a recommended choice for therapy practice accounting. Virtual services allow practices to choose packages based on their unique needs and budget constraints. By choosing virtual over traditional bookkeeping, therapists often save on overhead costs while still benefiting from comprehensive, professional support.

Most Popular: QuickBooks Online (QBO)

With Desktop, they have to physically come to your computer, or you have to create and download a backup of the Desktop files, send them the file, make sure they can access the file, etc, etc. To avoid these problems, take the time to carefully review your bank feed and ensure that each transaction is assigned to the correct account. This may take a bit of extra time, but it will save you a lot of headaches in the long run. We understand that when you are starting your business journey, it can be difficult to access advanced software like QuickBooks. You would be happy to know that Tangent Consulting partnered with QuickBooks to offer 80% off the first 6 months of an annual subscription.