6 Steps to Create a Budget for Therapists in 2023

6 Steps to Create a Budget for Therapists in 2023

Managing a business involves many moving parts, but one of the most important aspects is budgeting. 

As a therapist or private practice owner, it’s crucial to have a good grip on your financials to ensure that your business runs smoothly. 

That’s why it’s essential to create a comprehensive budget, no matter if you’re new to the game or have been in business for a while.

Now that we’ve entered the new year, it’s an excellent time to reassess your budget and make any necessary changes. 

By having a budget in place, you’ll be able to make informed decisions, keep track of your spending, and ultimately, work towards achieving your financial goals. 

In this blog, we’re going to walk you through step-by-step how-to create a budget for therapists in 2023. 

Let’s jump in. 


Making a budget for your therapy practice is not dissimilar to a budget that you make for your personal life. 

At its core, it’s expected income – expected expenses = money you keep.

Here are the steps we recommend taking to create your 2023 budget for your therapy practice: 

1. Get out your last few months of bank statements

As a first step, we recommend grabbing a coffee (or glass of wine) and sitting down to review your last few months of bank statements. Go through your expenses line-by line and see if there are any that you can take out. 

In fact, a good exercise that you can try is to take out ALL expenses from your business, and add them back in one by one, in order of priority, until you hit the expenses that you can really do without. 

While this technically is not an essential step of creating a budget, budgeting time is a great opportunity to review your business expenses and try to get them down as much as possible. 

What’s a few more minutes of spreadsheets if it can save you thousands of dollars each year? 

2. Determine your monthly income

Ok, now onto the actual budgeting. The next step of budgeting is to know how much money you are bringing in each month. 

As a therapist, your income may be variable, so it’s important to track your income closely. 

We’ve written a few really helpful blog posts in this area – how-to calculate your Average Session Fee (ASF) and how to reach your target salary. We recommend checking out these blogs first! 

3. Calculate your monthly expenses

Now, back to your expenses. Make a list of all your monthly expenses, including rent, utilities, insurance, and any other bills you have to pay regularly. 

Be sure to also factor in expenses related to your therapy practice, such as office rent, supplies, and marketing costs.

And take out any of the unnecessary expenses you found in step #1.

4. Set financial goals

Budgeting isn’t just about paying bills, it’s also about working towards financial goals. Set short-term and long-term financial goals, such as saving for retirement, paying off debt, or investing in your therapy practice.

We deal a lot with this with our clients here at  TL;DR: Accounting. If you need help creating long-term financial goals, and a roadmap to get there, you can book a call with one of our accountants here anytime. 

5. Create a budget

With all of this information in mind, now you can create a budget that works for you. 

Allocate your income towards your expenses and financial goals, and make adjustments as needed.

6. Track your spending

Last but not least, you can’t just file this document away and never look at it. 

You’re going to have to stick to it!

To make sure you’re sticking to your budget, it’s important to track your spending. 
Use an app or spreadsheet to monitor your expenses and make adjustments as needed. You can download our helpful Finance Tracker to help you by following the link here!

TL;DR: Creating a budget for your therapy practice in 2023 is critical to reaching your short and long-term financial goals. But the budget isn’t a set-it and forget-it document. You’ll need to refer to it regularly to ensure that you are hitting your goals. If you need extra help, you can book a call with us to chat anytime. 
Khaled - TLDR

Khaled Albadawi, CPA

Principal & CEO

Khaled joined TL;DR as Principal in December of 2022, and has quickly hit the ground running offering a fresh new perspective for the TL;DR team and clients. He’s a natural entrepreneur & leader, starting his days at 4 AM with a nice cup of coffee to get a jumpstart on projects before the business world wakes up. His one piece of advice to business owners? Ask yourself if you are creating just another job or a business. Ideally, you should be building something that doesn’t require you to be there 40 hours a week!

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