Therapists in private practice
Private practice money, untangled
You see a client on Tuesday. Money arrives twice: a copay today and an insurance payment six weeks from now. Most bookkeeping messes start right there.
The shape of the problem
One session, two money streams
The system
Three habits that keep it clean
- 1
Separate the account
One business checking account for the practice. Copays, reimbursements and expenses all land in one place your books can see.
- 2
Record by payer
Copays and card payments are revenue today. Insurance payouts are revenue when they land, recorded from the payout report so each claim is visible.
- 3
Reconcile monthly
Once a month, upload the statement. Every deposit gets matched, and anything the insurer still owes you becomes obvious.
What clean books buy you
Ten minutes a month, and the practice stops being a mystery.
- Quarterly tax estimates from real profit, not guesses
- A clear answer to “can I afford to drop that panel?”
- Numbers a lender or an S corp election can stand on
Privacy note: your ledger needs payers, dates and amounts, never diagnoses or names. If your bookkeeping tool shows a client name, that is a records problem, not just a tax problem.
FAQ
Questions, answered
Do client names belong in my bookkeeping?
No, and they should not be there. Your books track money by payer and date, not by client. Keep clinical records and financial records separate systems.
How do I handle an insurance payment that covers several sessions?
The deposit is one bank line but the payout report lists each claim. Record from the report and the deposit reconciles while each session stays accounted for.
What about superbill clients who pay in full?
Simplest case: their payment is revenue on the day it lands. The superbill is between your client and their insurer, not a receivable in your books.
Untangle the practice tonight.
Create a free account, drop in a bank statement, and watch every transaction get categorized. 100 free credits to start, 10 more every day. No card required.
Takes about 90 seconds. No sales call, no onboarding fee, no contract.