What Every Therapist Should Review Before the End of the Year
What Every Therapist Should Review Before the End of the Year
October is a sweet spot for therapists. The back-to-school rush has settled. Holidays haven’t kicked in yet. And for many private practice owners, there’s still time to check in on the business side of things before tax season sneaks up.
Here’s a calm, supportive checklist to help you review your finances, protect your profit, and set yourself up for a peaceful year-end.
1. Review Your Year-to-Date Income & Expenses
Open your bookkeeping software (or spreadsheet) and look at your totals from January through now. Ask:
How much have I brought in?
What have I spent?
Are there any surprises?
💡 If you're working with a bookkeeper, they can help you review your profit & loss report and spot red flags—or opportunities to adjust before December.
2. Catch Up on Categorizing and Reconciliation
If you've fallen behind (you’re not alone!), now is the time to:
Categorize expenses in QuickBooks or your EHR
Reconcile bank and credit card accounts
Upload missing receipts or mileage logs
This keeps your books clean and saves you money during tax prep. (No more rush jobs in January.)
3. Set Aside Funds for Taxes
Review your total net income so far and calculate your estimated tax liability:
A general rule: set aside 15–20% of net income
If you’ve been making quarterly payments, review your totals and adjust as needed
💡 Tip: If you’re behind, October is your chance to catch up—without panic.
4. Assess Business Expenses and Upcoming Investments
Ask yourself:
Are there purchases I want to make before year-end? (Think continuing ed, equipment, tools, etc.)
Do I need to pause or cancel any subscriptions that aren’t adding value?
Can I maximize deductions by being intentional with Q4 expenses?
A little planning now can reduce stress and lower your tax bill later.
5. Review Client Balances (Accounts Receivable)
Do any clients owe you money?
Follow up on unpaid invoices now while the year is still active
Decide if you’ll write off anything that’s truly uncollectible
Consider adding auto-pay, cards on file, or clearer payment policies for the new year
🔗 If client payments are a sore spot, read this blog post on how to set healthy money boundaries.
6. Review Your Fees and Profitability
Look at your effective hourly rate across clients:
Are you being compensated fairly for your time and expertise?
Is there any work you’re doing that feels out of scope, or underpriced?
Are there any services you want to let go of—or raise rates for—in the new year?
It’s okay to make changes. In fact, it’s essential for sustainability.
7. Set a Date for Your Annual Review
Don’t leave your 2024 wrap-up for December 31st.
Choose a quiet date in November or early December to:
Reflect on your financial wins and challenges
Set goals or boundaries for next year
Meet with your bookkeeper or tax pro to plan ahead
Put it on the calendar now—it’s a gift to your future self.
🧩 Final Thought
You don’t have to do all of this in one sitting. And you definitely don’t have to do it alone.
Taking just an hour or two this month to check in on your numbers can save you days of stress in January. It’s a small act of care for yourself, your business, and your clients.
Need HELP WITH A Financial Review?
I help therapists set up peaceful, professional bookkeeping systems—with support that actually fits your life and boundaries.
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