Bookkeeping for therapists

We will keep you up-to-date on tax law changes that are specific to mental health professionals, making sure you never overpay again. If you’re just starting a practice, mixing your personal and professional transactions can be easy if you don’t have a separate business account. You run the risk of claiming a personal expense as a business expense, which could land you in hot water with the IRS. As a healthcare provider, you must account for more than just patient payments. You also have to deal with insurance companies and government-backed programs like Medicare and Medicaid. To fully leverage the Pomodoro Technique, consider using a digital timer or app to keep QuickBooks track of your sessions.

• Afterward, contact your bank to open your practice’s business checking account and apply for a business credit card.
• Built for therapist entrepreneurs, our expert guidance and innovative tools save you time and money while empowering you to build the practice of your dreams.
• Therapists who want to focus on clinical practice but are overwhelmed by administrative tasks can consider outsourcing bookkeeping functions, which can be done by hiring a professional accountant or bookkeeper.
• I help business owners eliminate the barriers to growth and take their company to the next level.

Get paid with Owl Practice.

This framework helps you categorize your tasks into four distinct quadrants based on their urgency and importance. By understanding these categories, you can make more informed decisions about where to focus your time and energy. You must also navigate the complexities of billing insurance companies and government programs like Medicaid and Medicare. In 2020, Medicare’s estimated overpayments to healthcare providers amounted to $43 billion, largely due to inadequate bookkeeping for therapists documentation. To avoid financial repercussions and ensure compliance, it’s essential to maintain thorough and accurate records of all insurance claims and paperwork. Patriot Accounting offers payroll integration, allowing group practices to manage employee salaries, tax withholdings, and other payroll-related tasks with ease.

WHAT IS THE ROLE OF A BOOKKEEPER for Therapists?

Clear documentation of these payments in your bookkeeping system is essential​. As a self-employed therapist, you’re responsible for paying estimated taxes quarterly to cover federal income, Social Security, and Medicare taxes. Unlike salaried employees whose taxes are withheld by employers, self-employed individuals must make these payments themselves. Be sure to keep all health insurance payment records and related documentation for accurate filing and future reference.

Tax Planning

• By doing so, you’ll be able to transfer income data to your accounting program to keep your books current.
• Our professionals ensure that every financial move you make is tracked and recorded systematically, paving the way for smooth operations and strategic business planning.
• 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.
• The platform’s user-friendly interface is designed to make accounting accessible for non-accountants.
• It also offers a built-in accounting module that allows therapists to track income and expenses, generate financial reports, and streamline their bookkeeping processes.

Under the Health Insurance Portability and Accountability Act (HIPAA), mental health professionals face strict data security regulations. If you disclose a patient’s Protected Health Information (PHI) for reimbursement or payment, you could face stiff fines and even jail time for extreme violations. In 2021, The Department of Health and Human Services Office for Civil Rights handed out penalties totaling $15 million.

Therapeutic Tax Solutions specializes in demystifying tax requirements and ensuring you benefit from all applicable deductions. Practice owners should consult a tax professional to understand HVAC Bookkeeping their tax filing requirements. This can help cover expenses like gaps in client payments or equipment needed to maintain business operations.