Accounting for Mental Health Practices
A dedicated accounting practice for therapists, counselors, psychologists, and clinic owners, built around the way clinical revenue actually arrives.
Built around clinical revenue, not retail revenue
Therapists, counselors, psychologists, and clinic owners rarely bill one way. Insurance panel deposits, EAP contracts, sliding-scale private pay, and a payroll provider all land in the same bank account, and the money arrives weeks after the session. Our practice accounting keeps those streams separated, reconciled, and reportable, so you always know what you earned, what is still outstanding, and what you owe in quarterly estimates.
What we handle every month
- Monthly reconciliation of panel deposits, card batches, and private-pay income
- Clinical records kept separate from financial reporting, so no client detail ever enters your books
- Contractor versus employee classification, with year-end 1099 or W-2 preparation
- S-Corp election analysis, reasonable compensation, and owner payroll
- Quarterly federal and state estimates, plus Texas franchise tax
- Monthly profit and loss, balance sheet, and a plain-language summary in English or Spanish
Why practice accounting is different
A clinical practice carries costs a retail business never sees: credentialing fees, EHR and telehealth subscriptions, malpractice premiums, continuing-education hours, and supervision pay. Those belong in their own categories, so the numbers still mean something when you price a session, hire an associate, or open a second location. We also work the tax calendar a quarter ahead, because an owner who owes self-employment tax on contractor income should learn that in October, not in April.
Common questions
How much does accounting cost for a private practice?
Bookkeeping packages start at $249 per month for a solo practice, and the practice-focused package starts at $349 per month. Final pricing depends on transaction volume and how many revenue streams we reconcile. You receive a fixed written quote after a free 30-minute consultation.
Do you work with practices outside Houston?
Yes. L&S Financial is based in Houston, Texas, and serves practices remotely across all 50 states through a secure client portal, encrypted document sharing, and video calls.
Can you keep my clinical and financial data separate?
Yes, and we do it by design. We only need the financial side of your practice: bank and card statements, payroll reports, processor deposits, and receipts. Clinical records, session notes, and client names are never part of your bookkeeping.
Do you prepare taxes for practices with both contractors and employees?
Yes. We prepare Form 1040 with Schedule C for sole proprietors, Form 1120-S for S-Corps, and Form 1065 for partnerships, plus W-2 and 1099 preparation, quarterly payroll reports, and IRS correspondence support.
Book a free 30-minute practice consultation
We will review your current bookkeeping, your revenue streams, and your entity structure, then send a fixed written quote before any work begins.
Schedule a consultation