Download Your Chart of Accounts for Therapists 2023

The Chart of Accounts for Therapists Download 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 NameTypeDetail type
Business Credit CardCredit CardCredit Card
Owner’s EquityEquityOwner’s Equity
Owner’s Equity:Federal Estimated Tax PaymentsEquityOwner’s Equity
Owner’s Equity:State Estimated Tax PaymentsEquityOwner’s Equity
Client FeesIncomeService/Fee Income
RefundsIncomeDiscounts/Refunds Given
Bank Service ChargesExpensesBank Charges
Business MealsExpensesOther Business Expenses
Business Permits, Licenses, etc.ExpensesTax expense
Continuing EducationExpensesOther Business Expenses
ContractorsExpensesCost of Labor
Digital ServicesExpensesOffice/General Administrative Expenses
Dues and SubscriptionsExpensesDues & subscriptions
Insurance ExpenseExpensesInsurance
Interest PaidExpensesInterest Paid
Legal and Professional FeesExpensesLegal & Professional Fees
Merchant FeesExpensesBank Charges
Office ExpensesExpensesOffice/General Administrative Expenses
Office UtilitiesExpensesUtilities
Reference MaterialsExpensesOffice/General Administrative Expenses
RentExpensesRent or Lease of Buildings
Repairs and MaintenanceExpensesRepair & Maintenance
Small Equipment (under $2,500)ExpensesOther Business Expenses
SupervisionExpensesOther Business Expenses
Supplies & MaterialsExpensesSupplies & Materials
Taxes (sales tax, franchise tax)ExpensesTax expense
Interest EarnedOther IncomeInterest 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.

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Toni Cameron, CPA

Business Consultant, CFO Services, "The DM"

Toni is an accountant by day and gaming geek by night. As an accountant, Toni’s focus is dedicated to people like you — individuals, nonprofits, and small business owners. Toni’s adamant about taking care of all the things you just don’t have time to because she understands the value of a proper work-life balance.

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