Dear Dangerously in Love with Finance,
I’m exhausted, overwhelmed, and honestly, a little scared. I’ve worked so hard to build my mental health private practice, and I’m proud of the difference we’re making in people’s lives. But when it comes to the business finances? I feel like I’m always one step behind. Every month, it’s a new surprise—another expense I didn’t see coming. I’m drowning in this reactive cycle, just scrambling to put out fires, and it’s starting to take a toll on my cash flow. Some nights, I lie awake worrying if I’ll have enough to cover payroll, let alone plan for growth.
I don’t want to live like this anymore, constantly on edge and unsure of my financial future. I want to take control, to feel confident that I’m not just surviving but thriving. How do I move from this chaotic, reactive state to a place where I’m planning ahead and preventing these cash flow crises? I desperately want to forecast my financial future and avoid these crushing surprises, but I’m lost on where to begin. Can you guide me through this?
— Desperate to Breathe Easy
Dear Desperate to Breathe Easy,
First of all, I want to say that you’re not alone in feeling this way. Many mental health professionals who have taken the courageous step to build their own practices often find themselves exactly where you are—overwhelmed, exhausted, and unsure how to gain control over the business side. You’ve worked hard to create a space where you can change lives, and that’s something to be proud of. But when it comes to managing the finances, it feels like you’re drowning in a sea of uncertainty. Sound familiar? Well, take a deep breath, because I’m here to help you navigate through this storm.
Let’s be real; you didn’t get into therapy to become an accountant or bookkeeper, right? Your passion is helping people, not staring at spreadsheets and sorting through financial statements. But here’s the kicker: if you don’t get a handle on the accounting and bookkeeping for your therapy practice, it will keep pulling you under. So, the first thing we need to address is the elephant in the room—your relationship with your finances.
You mentioned feeling like you’re constantly reacting to surprises. Expenses seem to pop up out of nowhere, and you’re left scrambling to cover them, right? This is what we call the reactive cycle. It’s stressful, it’s draining, and—let’s face it—it’s unsustainable. You deserve better than this exhausting game of financial Whack-a-Mole.
The Reactive Trap: Why It’s Draining You
The truth is, without a solid financial plan, you’ll always be in this state of reaction. You’re doing your best to provide care for your clients, but who’s caring for your business? Financial surprises happen, but they shouldn’t be knocking you off your feet each month. This is where accounting and bookkeeping for therapists come into play. You need a system that can help you see where the money is going, identify those sneaky expenses, and prepare you for the future instead of leaving you in a constant state of financial anxiety.
Here’s your first task: Stop putting out fires and start preventing them.
How do you do that? It starts with financial visibility. Right now, you feel like you’re in the dark, reacting to what you can’t see. But with a clear view of your income, expenses, and cash flow, you can start anticipating those expenses that are currently blindsiding you. And here’s where I drop the magic words: bookkeeping and accounting for therapists.
Accounting and bookkeeping isn’t just about tracking expenses; it’s about understanding the financial pulse of your practice. You need to know what’s coming in, what’s going out, and where the gaps are. This might sound overwhelming, but once you get a system in place, you’ll feel like someone handed you a flashlight in a dark room. You’ll see where your money is going and, more importantly, where it needs to go.
I know what you’re thinking—“I don’t have the time or energy to focus on bookkeeping.” And you know what? You’re right. You don’t have to do it alone. One of the best moves you can make for your mental health and private practice is getting professional help with your finances. Just as you wouldn’t recommend that your patients tackle their deepest issues without guidance, you shouldn’t manage the intricate details of your practice’s finances without support.
Think of hiring a bookkeeper or financial accountant who specializes in therapy practices as an investment in your sanity. Not only will they help you understand your cash flow, but they’ll also set you up with tools to project and forecast your finances. When you know where your money is going, you can stop feeling like you’re always playing catch-up.
Now that we’ve addressed visibility and support let’s talk about financial forecasting. I know, I know—it sounds intimidating. But here’s the thing: you must get ahead of the game to stop being blindsided by expenses. Financial forecasting is your secret weapon for planning and avoiding cash flow crises.
Start by looking at your historical financial data. You might not have a perfect system right now, but that’s okay. Pull together whatever you have—bank statements, invoices, payroll records—and work with your accountant to identify patterns. When do you typically see a dip in income? Are there certain times of year when expenses spike? By reviewing your past, you can start predicting the future.
And here’s the beauty of forecasting: It lets you plan for growth, bringing a sense of relief. No more lying awake at night, worrying if you’ll make payroll. Once you know your numbers, you can start planning how to expand your practice or bring on new therapists without jeopardizing your cash flow.
Mindful Take-Away Thoughts:
I know it feels overwhelming right now, but you’ve already taken the first step by reaching out for help. You’re on the path to gaining control over your finances and, in turn, your practice. It won’t happen overnight, but with the right support, the right tools, and a clear plan, you’ll go from feeling like you’re drowning to sailing smoothly ahead.
Regards,
Dangerously in Love with Finance
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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 [email protected]