Therapists need bookkeeping software that helps them stay on top of payments, manage client records, track expenses, and maintain compliance with industry standards (such as HIPAA in some cases). The right software should save you time, reduce administrative burdens, and help keep your practice running smoothly. Here’s a list of the best bookkeeping software for therapists, starting with FreshBooks.
1. FreshBooks
FreshBooks is a simple yet powerful bookkeeping solution, perfect for therapists who want to focus more on their practice and less on accounting. I’ve seen therapists use FreshBooks to track client payments, manage expenses, and generate easy-to-understand financial reports.
Key Features:
- Client Invoicing: Send customized, professional invoices for sessions and accept online payments.
- Expense Tracking: Track practice-related expenses like rent, office supplies, or continuing education.
- Recurring Invoices: Set up recurring invoices for clients on ongoing therapy plans, simplifying the payment process.
- Mobile App: Track payments and expenses on the go, whether you’re working remotely or at your office.
- Client Management: Keep client billing details in one place for easy reference.
- Time Tracking: Track billable hours for different clients if you charge by the hour.
Why It Works:
FreshBooks is perfect for therapists because of its user-friendly interface and focus on small businesses and freelancers. It allows you to quickly invoice clients, track payments, and handle expenses without getting overwhelmed by technical details. The ability to set up recurring invoices is a huge time-saver for therapists with regular clients.
2. SimplePractice
SimplePractice is designed specifically for health and wellness professionals, including therapists. It’s more than just bookkeeping software—it offers practice management features alongside accounting tools, making it an all-in-one solution for therapists.
Key Features:
- Client Scheduling & Invoicing: Book appointments, send invoices, and accept payments online.
- Secure Client Portal: A HIPAA-compliant portal for clients to manage appointments, fill out forms, and pay bills.
- Insurance Billing: Manage insurance claims and payments, ensuring proper reimbursement for services.
- Expense Tracking: Track office-related expenses, mileage, and other business costs.
- Customizable Reports: Generate financial reports for tax preparation, profit and loss analysis, and cash flow management.
- Telehealth Integration: Offers secure video sessions with built-in invoicing for teletherapy sessions.
Why It Works:
SimplePractice is ideal for therapists who need both practice management and accounting in one tool. The software is tailored for mental health professionals, so you get features like HIPAA compliance, insurance billing, and telehealth services. It’s perfect for streamlining both your clinical and financial operations.
3. TheraNest
TheraNest is another practice management software with built-in accounting tools, designed specifically for therapists, counselors, and mental health professionals. It focuses on making it easy to handle both client management and financial tracking.
Key Features:
- Client Billing & Payments: Easily bill clients, accept payments, and track payment histories.
- Insurance Billing: Submit claims directly through the software, track reimbursements, and manage insurance payments.
- Expense Tracking: Monitor business expenses like rent, office supplies, and travel.
- Financial Reporting: Generate reports like profit and loss statements and cash flow reports for tax time and business analysis.
- Client Scheduling & Reminders: Schedule client appointments and send reminders to reduce no-shows.
- Telehealth Support: Provides HIPAA-compliant video therapy sessions with automatic invoicing.
Why It Works:
TheraNest is excellent for therapists who need insurance billing integration and strong client management tools alongside bookkeeping features. If you deal with insurance claims regularly and want a seamless way to handle both client records and finances, TheraNest has you covered.
4. QuickBooks Online
QuickBooks Online is a versatile accounting software solution that can be customized for therapists who need powerful bookkeeping tools. It’s particularly useful for therapists running a growing practice or handling complex finances with multiple revenue streams.
Key Features:
- Invoicing & Payment Tracking: Send invoices and track payments from clients, accept online payments, and set up automatic payment reminders.
- Expense Tracking: Monitor and categorize business expenses, such as rent, utilities, office supplies, and travel costs.
- Bank Reconciliation: Connect your business bank account and automatically reconcile transactions.
- Custom Reports: Generate financial reports such as profit and loss statements, cash flow reports, and balance sheets.
- Payroll Management: Manage payroll for any staff or assistants in your practice.
- Third-Party Integration: Integrate with scheduling tools and practice management platforms to streamline operations.
Why It Works:
QuickBooks Online is a great solution for therapists managing larger practices or those who need more advanced accounting features. Its wide range of integrations, robust reporting, and scalable tools make it ideal for practices that are growing or expanding.
5. Wave Accounting
Wave is a free accounting software that provides all the essential bookkeeping tools a therapist might need, from invoicing to expense tracking. It’s especially suited for solo practitioners or therapists running small private practices.
Key Features:
- Free Accounting Tools: Offers invoicing, payment tracking, and expense management at no cost.
- Online Payments: Accept payments online for therapy sessions, either through credit card or bank transfer.
- Invoicing: Create professional, customizable invoices for clients and set up automatic payment reminders.
- Expense Tracking: Track business expenses, categorize them, and generate reports to see where your money is going.
- Financial Reports: Generate basic financial reports, including profit and loss statements, balance sheets, and cash flow reports.
Why It Works:
Wave is perfect for therapists on a budget or those who are just starting their practice. It provides essential bookkeeping tools for free, making it easy to manage your practice’s finances without any upfront costs. The invoicing and expense tracking features are particularly helpful for solo practitioners.
6. TheraBill
TheraBill is designed specifically for behavioral health professionals and offers both practice management and accounting tools in one platform. It’s especially useful for therapists who need to handle insurance claims alongside their bookkeeping.
Key Features:
- Insurance Billing: Handle insurance claims directly through the platform, with support for electronic claims and tracking reimbursements.
- Client Invoicing: Create and send invoices for self-pay clients, with the option to accept payments online.
- Expense Tracking: Track your business expenses and categorize them for better financial reporting.
- Financial Reporting: Generate reports for tax preparation and financial analysis, such as profit and loss statements.
- Client Management: Store client information, track appointments, and send reminders.
Why It Works:
TheraBill is a strong choice for therapists who work with insurance and need a comprehensive platform that includes both billing and bookkeeping. Its focus on behavioral health professionals ensures that the features are tailored to the needs of therapists, including HIPAA compliance and insurance integration.
7. Kareo
Kareo is another software designed for healthcare providers, including mental health professionals. It offers medical billing, client management, and basic accounting tools in one platform, making it an excellent choice for therapists who deal with insurance claims.
Key Features:
- Client Billing: Bill clients for therapy sessions, manage payments, and track payment histories.
- Insurance Billing: Submit claims directly to insurance companies and track reimbursements.
- Expense Tracking: Keep track of practice expenses such as office rent, supplies, and payroll.
- Reporting: Generate reports for financial performance, tax preparation, and insurance billing summaries.
- Practice Management: Manage appointments, patient records, and client notes within the same platform.
Why It Works:
Kareo is a great option for therapists who want an all-in-one solution that includes both medical billing and practice management. Its focus on healthcare providers ensures that you have the tools you need for insurance billing, client management, and financial reporting.
What to Consider When Choosing Bookkeeping Software for Therapists
1. Client Invoicing & Payment Tracking
Look for software that allows you to easily send invoices to clients, track payments, and set up automatic payment reminders. If you accept insurance, find a solution that integrates with medical billing or insurance claim processing.
2. HIPAA Compliance
If you handle sensitive patient data, make sure the software you choose complies with HIPAA or any other local privacy laws to ensure confidentiality and data protection.
3. Expense Tracking
Your software should let you easily track and categorize expenses related to running your practice, such as office rent, utilities, supplies, and travel costs. This is essential for tax reporting and financial management.
4. Client and Appointment Management
Consider choosing software that offers appointment scheduling, reminders, and client management features alongside bookkeeping, especially if you want to keep your practice organized in one system.
5. Reporting
Look for software that provides customizable financial reports, including profit and loss, cash flow, and balance sheets. These reports will help you analyze your practice’s financial health and prepare for tax season.
Comparison Table for Quick Review
| Software | Best For | Key Features | Price Range |
|---|---|---|---|
| FreshBooks | Small to medium practices | Client invoicing, expense tracking, payment reminders | Starts at $15/month |
| SimplePractice | Therapists needing full practice management | Invoicing, insurance billing, HIPAA-compliant client portal | Starts at $39/month |
| TheraNest | Therapists needing insurance billing | Client management, insurance claims, financial reporting | Starts at $39/month |
| QuickBooks | Larger practices, scalability | Expense tracking, invoicing, custom reporting, payroll | $30+/month |
| Wave | Budget-conscious therapists | Free invoicing, payment tracking, expense management | Free |
| TheraBill | Insurance-heavy practices | Insurance billing, client invoicing, expense tracking | Custom pricing |
| Kareo | Therapists managing insurance billing | Medical billing, practice management, expense tracking | Custom pricing |
My Top Recommendation
For solo therapists or those with small practices, FreshBooks is an excellent choice because of its simplicity and effective invoicing and expense tracking features. If you need a more robust solution with practice management tools, SimplePractice or TheraNest will be the best fit, especially for those managing insurance claims and telehealth services.
For those who are just starting out or working with a tight budget, Wave offers a solid free option that covers the basics. If your practice is growing and you need more advanced accounting and payroll features, QuickBooks Online offers scalability and comprehensive financial management.
Try a few out with free trials to find the one that best suits your therapy practice’s needs!