As a therapist or psychologist in private practice, you need to keep accurate records of your finances.
But we get it, it’s not exactly the most exciting part of your business.
It can be a time-consuming and challenging task, especially if you are not familiar with accounting.
Enter in: accounting software.
The best accounting software for therapists can make it easier to track your income and expenses, and generate reports that can help you make informed financial decisions.
In this blog post, we will compare two popular accounting software options for therapists and psychologists: Xero and QuickBooks Online, and give you our recommendation for which one to choose!
Let’s dive in.
Xero Accounting for Therapists
Xero accounting is the new kid on the block when it comes to accounting software. But that doesn’t mean that it’s any less good.
In fact, we’re big fans!
Xero accounting was built for the modern business owner.
It’s a cloud-based accounting software that is designed specifically for small businesses and offers everything you need from invoicing, and expense tracking, to custom reporting.
Xero is probably best known for its user-friendly interface. It’s super easy to use and can be accessed from anywhere.
It is a very good option for therapists and psychologists who are looking for a cost-effective and easy-to-use accounting software.
QuickBooks Online for Therapists
QuickBooks Online is another great option for bookkeeping. In fact, it’s the go-to accounting software we use here at TL;DR: Accounting.
And we use it so much that we wrote a blog post last year with our QuickBooks Online tips.
One of our best tips? As a therapist, it’s important that you are using QuickBooks Simple Start or QuickBooks Essential, instead of QuickBooks Self-Employed.
If you don’t know, one of the easiest ways to find out is to look at the grey bar on the left. Is “Mileage” one of the main categories you see? If so, you’re using QBO SE.
We recommend upgrading from QBO SE to QBO Simple Start or QBO Essentials as soon as you feel that you are committed to your business, as the functionality is more suitable for private practice.
While QuickBooks Online and Xero are very similar in terms of features, QuickBooks Online also trumps Xero with its customized reporting.
Best Accounting Software for Therapists: Which One Should You Choose?
When choosing between Xero Accounting and QuickBooks Online as a therapist, you really can’t go wrong with either. They are both great platforms.
The most important thing is that you actually use it.
Even with the best accounting software on the market, your books aren’t going to keep themselves. It’s critical to stay on top of your bank reconciliations and make sure your transactions match up.
Additionally, ensure your chart of accounts is set up properly for a therapy practice. We wrote more about that here.
If you have a question about the best accounting software for your therapy practice, we’re always here to help.
Simply book an appointment to chat with one of our accountants, and we can get you set up with the best software for your business.
Until next time!