Bookkeeping and financials for a therapy practice
Private practice money is messier than the session count suggests. Claims pay 20 to 60 days out at contracted rates below what you billed, so cash arriving in March has little to do with work done in March. Until the books separate billed, allowed and collected, a strong month and a weak month look identical in the bank balance.
Four numbers run a practice: collected per session, revenue recovered from late cancellations and no-shows, receivables aged past 60 days by payer, and cost per new client. That last one decides whether an ad channel stays on, and almost nobody calculates it.
The expensive habit is running everything through one account and seeing the picture in April. Quarterly estimates, the home office, supervision and CEU costs, and whether an S corporation election makes sense, all depend on numbers that exist by then or do not. After two weeks the books are reconciled and a one-page profit and loss is in your inbox.