Why You Should Outsource Your Private Practice Bookkeeping
When you started your own private practice it gave you the freedom to help people! But I bet you didn’t realize just how much this means dealing with stuff you DIDN’T go to school for!
As you grow, so do your private practice bookkeeping needs (as well as the stress during tax season!) Which is why it makes the most sense to outsource. Let me explain why…
#1 You can focus on what you do best
I’m going to hazard a guess that alongside your licenses, you didn’t sneak in a bookkeeping qualification as well. And that’s okay! You want to be a therapist, so why are you stressing about receipts and numbers?
When you outsource your private practice bookkeeping, you get the peace of mind that your books are taken care of. Saving you time, and energy to focus on what you do best in your private practice!
#2 You actually save money
Hear me out.
Think of the time it takes you to do your bookkeeping. This time you spend is time lost with a client, or your family, or other parts of your business. And time is money after all!
But, when you hire a private practice bookkeeper they get it done quickly, and effectively because they usually have their own processes in place. So if you look at the numbers (and I really do love my numbers!) it’s much more cost-effective to let a professional do it.
And I haven’t even mentioned the potential costly mistakes you could be saving yourself and your private practice by NOT doing the bookkeeping yourself! In all honesty, I clean up a lot of messes from ‘DIY Bookkeeping’, and it’s not cheap for the client! This isn’t saying that you’re not capable of doing it yourself, but if you truly want to do it yourself, I urge you to take accounting and bookkeeping courses before jumping in!
#3 Finally get really organized
Is your system a drawer that you throw your receipts in? Is it a box? Your desk? The floor?! You’d be surprised at the bookkeeping systems I’ve created to streamline this side of your private practice. But all jokes aside, we can help you clear this off of your plate (and your desk!)
Most decent private practice bookkeepers will help you pick a bookkeeping software that is right for your private practice. Like Quickbooks Online for example. This will let you say goodbye to tons of paper and spreadsheets. Hello (nearly) paperless bookkeeping!
#4 Knowledgeable decision-making
Are you looking at growth and expansion potential? Maybe you want to upgrade your private practice office with some new furniture, or even look into getting a bigger space? Or hiring a clinician. That’s awesome – but do you REALLY know how much you can afford for that new couch, larger space, or clinician? Are you 100% sure what your monthly bottom line is after all expenses are deducted from your gross income so you can make an educated decision on what you can afford? If not, accurate bookkeeping records and reviewing monthly financial reports are KEY to understanding your numbers and the financial story of your private practice.
Big financial decisions like this, just became a lot more clear!
#5 Ditch the tax time stress
It’s not everyone’s favorite time of year, but it’s essential! Now, with your private practice bookkeeping in order, tax season is cheaper and less stressful! Why? Because having a bookkeeping professional on your private practice team means your books are up to date every single month, throughout the entire year. So come tax time, you have nice, clean, bookkeeping records and you won’t be scrambling to figure out your total income, expenses, net income, and all the other necessary information your tax professional needs to prep your private practice taxes!
Oh – and if you think you’ll just hand your tax professional a pile of receipts and bank statements and they’ll take care of it for you, think again! Most tax professionals loathe bookkeeping, and they’ll either say “Hey, you need to get your records in order before I can prep your taxes” or “You just handed me a pile of disorganization during my busiest time of year. This is going to take me a while to go through, so I’ll need to charge you my hourly rate of $$$ to sift through this and compile your numbers for you.”
Hello really large tax prep bill! But if you hand them accurate annual reports that came from your bookkeeper, they’ll love you for it and it’ll save them time, and you money!
Overall, I would always recommend outsourcing your private practice bookkeeping. Particularly if you want to take your practice to the next level, make more money, and ditch the tax time overwhelm!!
