Bookkeeping and Accounting for Clinical Psychologists

As a Clinical Psychologist, you can write off a variety of different expenses in your tax returns. These include:

• Office expenses: If you maintain an office, you can write off expenses related to its upkeep, such as rent, utilities, insurance, and cleaning.
• Psychological tests and tools: All the tools and tests you need to perform your job can be written off.
• Continuing education: If you are required to take continuing education courses to maintain your license, these can be tax deductions.
• Professional memberships and subscriptions: The cost of professional memberships to psychological associations or subscriptions to trade publications can often be written off.
• Transportation: If you use your car for work purposes, you may be able to count this as a deductible expense. However, you must keep careful records.
• Advertising and Marketing: Costs incurred in advertising and marketing your private practice are tax deductible.

As tax laws can be complex and vary by region, it's important to work with a knowledgeable accounting professional or bookkeeper familiar with the specifics of your industry to ensure you're maximizing your deductions while staying within legal guidelines.

A bookkeeper can significantly help in managing your insurance claims and payments in your psychology practice. They can assist in tracking your transactions, organizing your financial data, and ensuring you're on top of payments and claim requests. Additionally, they can also help in understanding insurance billing codes and how they apply to your practice. This, in turn, can lead to smoother transactions and lesser errors. A bookkeeper can ensure you're getting paid on time and help manage your cash flow better. Overall, their contribution can not only aid in your financial management but can also help you to fully concentrate on your practice.

To keep your clinical psychology business healthy and profitable, there're several financial reports that you should regularly review. These include:

<ul><li>Profit and Loss Statement (P&L): This shows the revenue, costs, and expenses during a particular period of time.</li><li>Balance Sheet: This snapshot of your business's financial position includes assets, liabilities, and equity.</li><li>Cash Flow Statement: This outlines the inflow and outflow of cash, helping you understand where the money is coming from and where it's going.</li><li>Accounts Receivable and Accounts Payable Aging: These details the due money or payments for your business within certain time increments.</li><li>Revenue by Client: This can help identify which clients are the most profitable.</li></ul>

Considering these reports will provide a complete view of the financial health of your clinical psychology business. Bench Accounting can handle all these areas and more, providing you with detailed and highly organized reports.

Nope! All bookkeeping is completed in-house.

Your bookkeeper will be your main point of contact, but at times you might hear from another member of your team. This is usually when your bookkeeper goes on vacation, is sick, or otherwise unavailable.

We handle the bookkeeping for you but sometimes we’ll need your input, especially at year-end. On average, expect to spend 15 minutes each month answering questions for your bookkeeper, or uploading supporting docs.