182: Bookkeeping For Therapists Behind the Scenes: Gatekeeping vs Alignment

While we often view bookkeepers as the magicians of our business finances, appreciating their attention to detail, their ability to categorize and match debits and credits, and for keeping our finances organized, there also exists the perception of a gap between the business owner’s and the bookkeeper’s knowledge of how money works. This lack of understanding can lead to miscommunications and underappreciation for the work that therapists or bookkeepers do. 

Sara Walls has seen both sides of the coin, having experienced being the therapist who needed help managing the business finances to becoming the bookkeeper who now helps therapists with their money. She actually left private practice for a few years until she discovered additional tools like Profit First by Mike Michalowicz and Linzy’s course, “Money Skills for Therapists” (links below). In fact, one of her biggest realizations that helped push her to pursue help is summarized nicely with this quote: 

(00:06:17) "It became clear the more I got into it that what I didn't know was how much I could actually afford to pay myself, when I could pay myself, how consistently I could pay myself, exactly how much I should be saving for taxes." - Sara Walls 

Learn about her journey from therapist to bookkeeper for therapists, some financial management tips for neurodivergent private practice owners, ways to develop good financial habits to reduce stress about money and gain a deeper understanding of what a good bookkeeper can do for your business. 

Reducing Stress and Enhancing Financial Management with Accountability 

(00:02:45) Bookkeepers' Unrecognized Complexity in Accounting Profession 

(00:08:45) Therapist turned Bookkeeper shares financial insights 

(00:19:10) Bookkeepers: Undervalued and Underpaid Professionals 

(00:20:58) Routine Financial Engagement for Reduced Money Stress 

(00:28:44) Financial Co-Regulation for Enhanced Accountability 

(00:30:37) Financial Literacy Training for Therapists 

Establishing Open Lines of Communication & Good Financial Habits for Long-Term Success 

Finding an aligned service provider when it comes to your business finances may require an interview or other setting where you can determine their level of transparency, their defensiveness or openness when you ask questions, and their expectation of your two roles in the business relationship. Some bookkeepers may gatekeep as their defensive reaction to “protecting” their value. Similarly, some practice owners may not recognize the complexity of the work required to keep the business finances straight.  

Here are immediate ways to improve your bookkeeping and financial management skills in your therapy practice: 

• Establish a financial routine: Regularly approach your finances, whether it's checking your bank app, updating spreadsheets, or using accounting software like QuickBooks.  
• Systemize & organize: Keep track of your income and expenses systematically to avoid falling behind, implementing some automation and delegation to help along the way. 
• Learn basic accounting: Seek basic understanding of financial concepts like debits and credits. This knowledge can empower you to manage your finances more effectively. 
• Find assistance & accountability: Work with a qualified bookkeeper who understands the specific needs of therapists and small business owners and who openly answers your questions and provides transparency. 
• Avoid the “it’s a write-off!” trap: While deductions are beneficial, ensure you have enough cash flow to pay yourself and set aside funds for...