5 Best Accounting Software for Therapists on a Budget
It’s Friday evening, and your office is quiet. The last client of the week has left, and you are considering the weekend plans. But all of a sudden, a thought flashed through your mind, “You have to send an invoice to Jerome.”
Snap, your weekend plan is ruined, and you wonder if you can do this instantly.
Guess what, you can do this instantly with the help of accounting software for therapists, and the cool thing is, it won’t cost you a lot.
So, here are the 5 best accounting software you can use as a therapist.
But First, Why Do You Need Accounting Software?
In Heard’s 2023 State of Private Practice Report, 9.3% of therapists responded they don’t know their biggest expense, and 12.4% failed to pay taxes. These numbers are just the tip of the iceberg; as a therapist, your job is not to spend your evenings or weekends on spreadsheets.
However, managing business income and expenses and preparing for tax time is part of your private practice. So, accounting software can be the magic wand you are looking for.
Saves Time
You know time is money, and doing bookkeeping manually can be time-consuming. An accounting software automatically tracks income and expenses and prepares reports that can save you a ton of time.
Organize Everything
Opening the balance sheet every time may make you cringe. Accounting software organizes everything, from your invoices to payrolls. You can organize everything and get an idea of cash flow.
Speaking of organizing, we have an interesting guide on how to organize receipts. So, make sure to check that out after reading this.
Getting Rid of Tax Stress
As a therapist, tax season can be overwhelming. You’re managing clients, taking notes, paying bills and then you don’t get time to do taxes. No wonder, in Heard’s survey, 12.4% of therapists forgot to pay taxes.
The accounting software can simplify this process and organize data for easy tax filing. So you don’t miss out on any deductions.
Make Smarter Decisions
Accounting software lets you do a whole lot more than just keep your numbers organized; it lets you make smarter decisions for your therapy practice.
You can have data insights on budgeting, expenses, and growth. So, you don’t have to guess if you can afford the new therapy platform.
Peace of Mind
Nothing is better than having peace of mind, and accounting software provides you with it. Peace of mind means that your financials are all correct and that you don’t have to doubt anything regarding your checking account, credit card statements, or overall cash flow.
5 Best Accounting Software for Therapists
The research paper “The impact of accounting software on accountants’ performance in the furniture companies”, showed that “recent improvements to accounting systems in general, and accounting software in particular, can enhance performance in furniture companies.”
If a furniture company can benefit from accounting software, so can you as a therapist.
So, let’s see the best accounting software for therapists on a budget.
1. QuickBooks Online
QuickBooks Online is one of the most popular accounting software options for therapists and small businesses. Its user-friendly design and cloud-based functionality allow you to manage your business accounting like a pro.
It integrates fully with over 702 apps, giving you complete control of your therapy practice and finances.
Key Features
| Automated invoicing |
| Track income and expenses |
| Generate tax-ready financial reports |
| Integrates with practice management software |
| Cloud-based access from any device |
Pros
- User-friendly and highly customizable
- Great for therapists with no prior accounting experience
- Excellent customer support and vast learning resources
Cons
- Subscription costs can add up if you need advanced features
Pricing
| Simple: $35/month |
| Essentials: $65/month |
| Add-ons: Payroll, time tracking, and others. |
We understand that when you are starting your business journey, it can be difficult to access advanced software like QuickBooks. But don’t let the price get in the way of growing your business. You would be happy to know that Tangent Consulting partnered with QuickBooks to offer 80% off the first 6 months of an annual subscription. This offer also includes a 30-day free trial. So, grab a deal now before it’s too late.
2. FreshBooks
Another popular accounting resource for therapists is FreshBooks. It offers easy-to-use platform with robust invoicing and payment features. It best suits therapists who manage business income across multiple platforms and clients.
The good thing is reporting and tracking expenses using FreshBooks makes tax season a breeze.
Key Features
| Create and send professional invoices |
| Accept payments online via credit card |
| Automatic expense tracking |
| Generate tax-friendly reports |
| Track time and client sessions easily |
Pros
- Simple interface perfect for non-accountants
- Great invoicing and payment tools
- Mobile app for managing your practice on the go
Cons
- Fewer accounting features than competitors like QuickBooks
- Limited scalability for larger therapy practices
Pricing
| Lite: $9.50/month |
| Plus: $16.50/month |
| Premium: $30/month |
3. Wave Accounting
Wave is best if you are starting out. Wave offers free accounting solutions like creating unlimited invoices and bills, managing cash flow, and managing clients. It has everything at no cost, so it’s quite an ideal setting up for therapists with small budgets.
Key Features
| Free invoicing and payment tracking |
| Connects with your bank account for transaction tracking |
| Tax-friendly financial reports |
| Expense categorization for easy management |
Pros
- Completely free for core accounting features
- No hidden costs for invoicing or bookkeeping
- User-friendly and ideal for small practices
Cons
- No direct customer support; only via email
- Advanced features like payroll are paid add-ons
Pricing
| Starter: $0 |
| Pro: $15/month |
4. Xero
Xero would be great if you need something more advanced, especially regarding expense tracking, managing cash flow, and preparing for tax season. The cloud-based solution allows access to your finances anywhere, anytime, and also integrates with many therapy platforms.
Key Features
| Connects to your bank account for real-time reconciliation |
| Automated invoicing and payment reminders |
| Robust reporting for tax and financial insights |
| Manage income and expenses with ease |
| Great integration options with third-party apps |
Pros
- Excellent financial reporting and real-time insights
- Great for larger or growing practices
- Top-notch security and customer support
Cons
- Steeper learning curve for beginners
- Pricing is higher than some competitors
Pricing
| Starter: $29/month |
| Standard: $46/month |
| Premium: $62/month |
5. Sage
If you want something simple yet effective, Sage can be your best bet. It’s designed for small businesses and freelancers. So, it is perfect if you are a solo practitioner. With Sage’s cloud-based solution, you can track expenses, check invoices, and prepare financial reports.
Key Features
| Simple, intuitive invoicing |
| Connects to your bank account for automatic transaction imports |
| Real-time reporting for cash flow and financial decisions |
| Cloud-based, accessible from anywhere |
| Strong security features for sensitive financial data |
Pros
- Easy to use for non-accountants
- Affordable pricing, great for small therapy practices
- Strong reporting and real-time financial insights
Cons
- Limited features compared to more robust platforms like QuickBooks
- Customer support can be slow at times
Pricing
| Start: £15/month |
| Standard: £30/month |
| Plus: £39/month |
Final Thoughts
So, there you have it. The 5 accounting software for therapists mentioned above offers multiple accounting solutions according to your needs and budget. It’s important to review the features again before deciding on a platform.
However, sometimes, even good software can’t do what good ol’ humans can do. Tangent Consulting provides pro CFO, bookkeeping, and tax services to simplify your accounting needs. So, you can have peace of mind. Hey, we care about you.
FAQs
Can therapists use QuickBooks?
QuickBooks is the OG of accounting software and is good for therapists and small businesses.
What is the simplest accounting software?
If you want simplicity, Wave Accounting offers a simple and easy-to-use interface at no cost.
