Dear Dangerously in Love with Finance,
I own a group therapy practice here in Chicago. From the outside, everything looks great. In just four years, I’ve grown from three clinicians to ten. The waiting room stays full, referrals keep coming in, and insurance payments hit our account regularly. To my friends and colleagues, it looks like I’ve finally reached financial security.
In reality, I feel stuck. Even though the practice has expanded, my own paycheck hasn’t increased in two years. At home, life is getting more expensive — my wife and I just had a new baby, and our oldest is starting preschool. I want to give myself a raise, but every time I look at the numbers, I worry that doing so will strain the practice.
How can I increase my compensation without putting my group practice at risk?
Signed,
—Lawerance, Chicago Practice Owner
Dear Lawerance,
This is a common problem for group practice owners: revenue grows, but personal compensation stalls because financial management systems aren’t keeping up.
When group practice owners, like yourself, sit down to review their numbers, everything looks stable. Deposits come in, payroll goes out, and bills are being paid.
But when we dig deeper, a different picture usually emerges:
Most group practice owners admit they rarely slow down to review the details. Their version of financial awareness is checking the bank balance. As long as money comes into the account, they assume things are fine. But “bank balance bookkeeping” hides where money is slipping away.
Bookkeeping for Private Practice: Awareness as the First Step
Awareness in financial management for therapists isn’t about tracking every penny. It’s about seeing where the practice is losing money and where profits are being squeezed. For therapy practice owners, this often means:
Building awareness means running cash flow reports, reviewing recurring expenses, and paying attention to how long it takes insurance payments to arrive. Awareness is the first signal that financial systems need to be stronger.
Cash Flow for Therapy Practices: Turning Awareness Into Management
Awareness opens the door. Financial management gives you control to make changes.
Here’s what we did with another group practice owner in your same situation:
- Adjusted Payroll Structure
We moved from ad-hoc bonuses to a clear compensation model tied to collections and billable hours. This kept payroll at a sustainable percentage while still rewarding staff fairly. - Tightened Accounts Receivable
We set up weekly claim reviews and consistent follow-ups. Within three months, thousands of dollars in overdue reimbursements were collected. - Reduced Hidden Costs
We canceled unused subscriptions, renegotiated the lease, and eliminated automatic payments that weren’t serving the practice.
These weren’t drastic cuts. They were practical accounting and cash flow management decisions.
Pay Yourself More: The Raise That Finally Happened
With better systems in place, he increased his salary by 20%. This time, he didn’t hesitate. He knew the financial reports supported it.
That raise made a direct impact:
The raise wasn’t just about income — it was about running his practice with stronger financial management and finally connecting business growth to personal financial stability.
Mindful Thoughts
Financial Management for Therapists: What Group Practice Owners Can Learn
Lawrence, your situation isn’t unique. Many group practice owners expand their business but don’t expand their own compensation. The gap comes from lack of awareness and weak accounting systems.
Here’s the takeaway:
Revenue alone doesn’t guarantee a raise. Bookkeeping, accounting, and strong financial management for therapists and group practice owners make it possible.
When awareness and management come together, the practice becomes more profitable — and the owner finally benefits from the work of building it.
Lots of Love, Coffee and Chocolate,
Dangerously in Love with Finance
Running a growing group practice but still not paying yourself what you deserve? It’s time to dig deeper:
- Where is your money really going?
- Which recurring expenses or delays are quietly draining cash flow?
- What financial systems need to be in place so giving yourself a raise is actually possible?
👉 At Healthy Bodies of Finance, we help group practice owners turn awareness into action. When financial management aligns with your goals, your practice grows profitably—and you finally get to benefit from the work you’ve built.
📲 Reach out today to start the conversation.
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This article is designed to provide information only and should not be considered legal or tax advice. Because of the complexity of the law and the variables in your own personal tax and accounting situation, you can’t rely on our advice specifically related to your unique circumstances. In order to get the best tax savings and legal advice available to you, you should consult with your own accountant, attorney or advisor regarding your particular facts and circumstances. Healthy Bodies of Finance is an accounting firm that specializes in working with health and wellness providers. We provide monthly accounting & bookkeeping services and financial education. For more information on our specialized services for health and wellness providers please contact us at info@healthybodiesoffinance.com