Modern Bookkeeping + Tax Advisory for Therapists & Wellness Businesses

Each month we will reach out to you with the key financial information for you to move your business forward. We include the estimated taxes you should set aside and a profit & loss statement detailing your performance for the prior month.

After you are onboarded, we will setup your bookkeeping in our free software.

Modern cloud-based software platforms are designed to help businesses file taxes, manage business expense accounts, and even provide assistance with various accounting services, from balancing the books to monitoring the incoming and outgoing money and allocating it accordingly.

There are many software solutions that can help you with private practice accounting. These softwares can help streamline the entire accounting process, from bookkeeping and tracking expenses to billing and invoicing.

Our team of advisors at Wellness Fi have specialized experience with many of the common bookkeeping softwares that therapists use, including:

• Square
• Intuit Quickbooks
• TherapyNotes
• Profit First
• Simple Practice
• Ivy
• Gusto
• Wave

Each of these software solutions offers secure data storage and a simple customer interface so you can manage your accounts in one convenient location. They also offer detailed reporting features so you can view expenses over time and identify potential money-saving opportunities.

Have questions about whether we work with the platform you use? Reach out today for your free, 20-minute consultation.

Ideally, you’ll want to choose a solution that can handle record-keeping automation, tax optimization, financial tracking, and even advisory support so that you can get your questions answered and get the best outcomes with your finances. Custom solutions can be created for each therapist or practice with a focus on what matters most to them.

Of course, you’ll want to be sure to find the balance between software and using real humans to help with the finances–there are some things computers just can’t do. And often the DIY path can often create more problems than problems solved.

Many therapists and coaches get overwhelmed by the money matters that small businesses have to deal with, so they prefer to rely on an accountant or another financial professional to help with their bookkeeping.

When you let someone else handle the finances, you can dedicate more time to your client base and ensure that your bills and taxes aren’t getting neglected. At WellnessFi, our services are designed with therapists and wellness professionals like you in mind. Our advisors are experts in your industry, and we're passionate about helping you prioritize your financial health.

These automated bookkeeping and tax services can be helpful, but they're not a replacement for working with a real person. Our advisors at Wellness Fi are experts in the health and wellness industry, so we know the ins and outs of helping professionals like you with the financial side of your business.

As financial experts in private practice accounting, we can act as your tax advisor, helping you identify which transactions count as a tax deduction and supporting you with tax preparation, including quarterly taxes.

We can also help you better understand laws in your state and clarify what is expected of you as a small business owner. State laws and guidelines vary and change regularly, so it’s helpful to know what the current rules are.

Finally, our financial professionals offer specialized knowledge, experience, and business resources. We can help protect your financial interests by recommending strategies to increase your gross profit while still meeting the needs of your ideal client.

Even if you hire someone, it’s still a good idea to understand the tax implications and best practices for bookkeeping and accounting in your private practice.

Mental health professionals aren’t typically required to take any type of accounting education, so this may become a “later problem” that doesn’t catch your attention until tax season, or until you realize that you’ve dropped the ball and need to pay taxes, file amended tax returns, or even prepare for an audit.

Let’s start with a look at some common terms you’ll need to be familiar with.

• Income/Revenue: This refers to any money that comes into your business, usually in the form of clients paying for your therapy/coaching services. If you sell books or other items, those sales will be included here, as well.
• Expenses/Deductions: These are costs involved in running your business. The list could include rent, supplies, office equipment, utility bills, phone bills, etc. Some people also call this “overhead” and it refers to any money spent on the business itself.
• Draw/Distribution: This is what you get paid from the business. Typically, this pay will come out of the business income. The amount will vary based on what you can afford or what kind of profits you have.
• Equity/Contribution: This refers to money of your own that you invested in your business.
• Profit/Net Income/Taxable Income: When you subtract your expenses from your income, the amount remaining is your profit, also sometimes called net income. It’s what the IRS and states use to calculate taxes owed.
• Profit & Loss Statement/Income Statement: This is an essential business document that outlines your income and expenses, including all the calculations, to determine whether your business is operating at a profit or a loss.
• Balance Sheet: This statement is used to report all of the business assets, equity, and liabilities.

These terms will help you better understand all aspects of your accounting and bookkeeping, no matter what type of private practice therapy business you have.

Still feeling foggy about what all these financial terms mean? Don't worry-our advisors are committed to guiding you through everything you need to know about bookkeeping for therapists. Unlike other firms, we prioritize building personalized relationships with each of our clients so you can get the attention and support you need.

Private practice therapists/owners are in a unique position. In addition to expenses and operating costs, you also have to consider taxes and other financial matters. Plus, many wellness professionals were never given the business education they need to feel confident handling their finances.

In a nutshell, our top takeaways are:

• Tax preparation, bookkeeping, and all other financial matters in your private therapy practice require expert attention.
• Choose bookkeeping software and solutions that make sense for your needs.
• There are a lot of details to cover so it’s always a good idea to get a second set of eyes.
• You probably can manage your own finances and business expenses, but private practice accounting experts are a much better choice.
• Give yourself access to a dedicated team of experts who can help with everything from billing to taxes and even weekly and monthly expense reporting, and more.

You'll get even more expert tips and personalized recommendations when you work with one of our advisors. We build relationships with each of our clients in order to provide the highest-quality bookkeeping and accounting for private practice therapists.

Yes, you need to keep your finances separate. Your personal finances and business finances should never mix.

That includes using your debit card for business purchases–upgrade to a business card as soon as possible or at least open a separate business account with its own linked debit card.

You also need to keep business expenses separate from personal expenses. Don’t buy copy paper with your personal cash and don’t expense that Starbucks latte–it sounds like a pretty common sense concept, but many people overlook or aren’t sure. These personal expenses do now qualify as tax deductions.

Especially in small businesses, it’s often easy to accidentally mingle personal and business money. Being a sole proprietor or having a small LLC means you have fewer options for business financing and spending, so you might feel stuck using your personal bank or credit cards.

If you have to do this, create separate accounts for the business, at the very least. Even if they are standard accounts for now, or a personal credit card you earmark for your therapy business, at least you have the separation of the expenses and bills.

We offer tax support as part of our full-service suite, as well as in our a la carte service options. From tax returns, estimates, optimization, and advisory, we've got you covered.

We sure are! Similar to Dave Ramsey’s “Pay yourself first” for personal finances, Mike Michalowicz’s “Profit First” for business is an excellent system for instilling a routine to ensure you are paid for your hard work. Many accountants are scared off by the idea of Profit First because it calls for the business owner to get multiple bank accounts. We like to consider ourselves a Profit First friendly firm, as we are willing to work with you in following the Profit First system. It doesn’t scare us, in fact we encourage it!

However, we do charge a little extra to accommodate for the additional work involved of having multiple bank accounts (see next question)