Download Your Chart of Accounts for Therapists 2023

A chart of accounts is basically a list of all the financial categories a business uses to keep track of its money. 

By having a chart of accounts, you can see exactly where all your money is going and coming from, which is super important for running a successful therapy practice.

Now, creating a chart of accounts might sound a little overwhelming, but don’t worry, it’s easier than you think! We’ll go through the process step by step and make sure it’s tailored specifically for therapy practices. 

So, whether you’re a new therapist just starting out or an experienced pro looking to improve your financial tracking, this blog has got you covered.

What is a chart of accounts?

Think of a chart of accounts as a filing system for a company’s financial transactions.

Just like you would organize your paperwork into different categories, a chart of accounts organizes your financial transactions into different categories or tabs.

Let’s look at an example of why a chart of accounts is needed.

Let’s say you spent $100 on printing paper, sticky notes, and pens at Staples yesterday.

In order to keep track of this transaction in your business, you will need to file this transaction into a bucket, or category, in your accounting system.

Which category does it fall under? This is where the Chart of Accounts comes into play. You can refer back to the Chart of Accounts, i.e. your list of categories, to see which bucket the expense would fall under.

In this case, the likely category will be Office Supplies.

Note: What works for other businesses will not necessarily work for your business. That’s why it’s important to create a chart of accounts for your specific business.

Why is the chart of accounts important?

The chart of accounts is important because it provides consistency and accuracy in financial reporting.

Without it, your banking and accounting software will just become a dark hole of various transactions – with no order or organization to them at all.

Additionally, your chart of accounts helps generate financial reports and makes it easier to track and analyze financial trends.

Plus, it ensures compliance with accounting standards and regulations, which is essential for audits and financial reporting.

So, without a chart of accounts, a company’s financial data would be disorganized and difficult to understand.

Where do you use the chart of accounts?

The chart of accounts is used in your bookkeeping or accounting software.

Depending on which software tool you use, the process for uploading your chart of accounts will differ. 

For QuickBooks, you can follow these instructions: 

1. Sign in to QuickBooks Online.
2. Select Settings ⚙. Then select Import Data.
3. Select Chart of Accounts.
4. To upload a file from your computer, select Browse and choose the file. Then select Open.
5. Select Next.
6. Map your spreadsheet to QuickBooks fields
7. Import your chart of accounts

For Xero, you can follow these instructions.

Download your Chart of Accounts for Therapists Template (2023): 

As mentioned above, it’s important to tailor your chart of accounts to your specific business.

To make it easy for you, we’ve created a therapy-specific chart of accounts for you to use in 2023.

You can follow the chart of accounts below, or make a copy of our free template here.

Account Name	Type	Detail type
Checking	Bank	Checking
Savings	Bank	Savings
Business Credit Card	Credit Card	Credit Card
Owner’s Equity	Equity	Owner’s Equity
Owner’s Equity:Federal Estimated Tax Payments	Equity	Owner’s Equity
Owner’s Equity:State Estimated Tax Payments	Equity	Owner’s Equity
Client Fees	Income	Service/Fee Income
Refunds	Income	Discounts/Refunds Given
Advertising	Expenses	Advertising/Promotional
Bank Service Charges	Expenses	Bank Charges
Business Meals	Expenses	Other Business Expenses
Business Permits, Licenses, etc.	Expenses	Tax expense
Continuing Education	Expenses	Other Business Expenses
Contractors	Expenses	Cost of Labor
Digital Services	Expenses	Office/General Administrative Expenses
Dues and Subscriptions	Expenses	Dues & subscriptions
Insurance Expense	Expenses	Insurance
Interest Paid	Expenses	Interest Paid
Legal and Professional Fees	Expenses	Legal & Professional Fees
Merchant Fees	Expenses	Bank Charges
Office Expenses	Expenses	Office/General Administrative Expenses
Office Utilities	Expenses	Utilities
Reference Materials	Expenses	Office/General Administrative Expenses
Rent	Expenses	Rent or Lease of Buildings
Repairs and Maintenance	Expenses	Repair & Maintenance
Small Equipment (under $2,500)	Expenses	Other Business Expenses
Supervision	Expenses	Other Business Expenses
Supplies & Materials	Expenses	Supplies & Materials
Taxes (sales tax, franchise tax)	Expenses	Tax expense
Telephone	Expenses	Utilities
Travel	Expenses	Travel
Interest Earned	Other Income	Interest Earned

TL;DR: The chart of accounts is necessary to organize your incoming sales and outgoing expenses into orderly categories. Additionally, it’s necessary to stay compliant with accounting standards and regulations. You will need to use a chart of accounts that makes sense for your therapy practice. Download our free template to use in your bookkeeping software, or contact us for additional help.