Your full list of accounts (or categories) is called your chart of accounts. If you do decide to use accounting software, here’s what you can do to make sure you choose the best option for your therapy practice. In full transparency, like I mentioned above bookkeeping for therapists – it’s the 21st century… cloud and online is just the way things ‘happen’ now. More specifically, though, QuickBooks Online is so much more versatile than Desktop, and it works perfectly for all of TBK’s clients (so therapists and private practice owners).
The other benefit of more specialized scheduling software for therapists is that they are also integrated with video platforms. Finally, you can also integrate many scheduling platforms onto your website so that everything is done directly from the one site. Most of you are probably already familiar with scheduling software but have you found the right one for you? Calendly is one of the most famous ones for general scheduling but scheduling software for therapists can now also integrate into EMR (electronic medical records) and billing systems. On the contrary, it’s about knowing how you, as a therapist, can use the tool to give yourself a unique edge. The team at Heard clearly cared about helping therapists understand what a financially healthy business looks like and empowering them to reach those goals.
Software that keeps you in control
An accountant uses information compiled by a bookkeeper to do so. However, accounting software can’t protect you from user error. It’s up to you to make sure you understand the fundamentals of making bookkeeping entries and generating financial reports. Using software is no substitute for hiring a qualified bookkeeper or accountant. Ready to add a financial therapist to your small business support system? Wright says the Financial Therapy Association (FTA) is a good place to start.
If invoices aren’t paid on time, running your business can become difficult, if not impossible. Your cash flow and having the necessary funds to pay your expenses is directly affected by patient payments, so having an organized bookkeeping system can streamline this process. Not only can you follow outstanding and paid invoices, you can also budget better by analyzing and predicting your regular expenses.
Let’s go of payroll stress
“I have therapists refer their clients to come to me just to talk about money,” she says. Section 179 offers a valuable tax advantage by allowing you to fully deduct the cost of eligible equipment or software in the same year you purchase it. That means you won’t have to rely on standard depreciation rules or wait until the following tax year to claim a deduction. This is a significant financial benefit, especially if you’re considering a major upgrade to your practice’s equipment or technology.
If bookkeeping isn’t your strong suit, or if you’re months or years behind, you might make mistakes and miss tax deductions and tax planning opportunities that could save you money. Outsourcing your bookkeeping could prove to be more cost-effective than you might think, with the financial benefits far outweighing those expenses. You can typically deduct expenses necessary to run your therapy practice. Attending a counseling conference, for example, could be a tax write-off. So could subscriptions to psychology journals or a laptop you use solely for work.
How to Start a Therapy Practice in Washington State
QuickBooks gives us real-time insight into our business operations and I appreciate that as it allows us to be more productive. The software is very easy to use, even for people who do not have an accounting background. A financial advisor is going to dive headfirst into your finances. It’s their job to offer advice and guidance on financial issues and decisions. And they’re a great resource to help you create and meet your financial goals.
