Bookkeeper vs. CPA: Who Should Handle Your Therapy Practice’s Books?

Who Should Handle Your Practice’s Books?

Managing QuickBooks is essential for any therapy practice, but it doesn’t have to be your responsibility as a practice owner. Delegating this task allows you to focus on your clinical work, grow your practice, and avoid unnecessary administrative stress.

(You might find it helpful to also read our article on write-offs for therapy practices.)

Should You Manage Your Own Books?

Before deciding, ask yourself:

1. Is This the Best Use of Your Time?
   Time spent on bookkeeping could be better invested in serving clients, building referral networks, or enhancing your therapeutic skills.
2. Do You Enjoy It?
   If you don’t find bookkeeping fulfilling or struggle with accuracy, this could lead to costly mistakes or burnout.
3. Can You Keep Up with Complexity?
   Managing insurance payments, tracking sliding scale fees, and reconciling client accounts can quickly become overwhelming without the right systems.

For most therapy practice owners, delegating bookkeeping is the smarter choice.

Bookkeeper vs. CPA: Which Is Right for Your Practice?

Option 1: Bookkeeper

Bookkeepers are specialists in day-to-day financial management, making them a cost-effective solution for small or new practices.

Benefits:

•     Expertise in managing routine transactions, including insurance payments and client billing.
•     Streamlined financial processes to save time and reduce errors.

Limitations:

•     Limited ability to provide strategic tax advice or long-term financial planning.
•     You’ll still need to work with a CPA for taxes and compliance, which adds another relationship to manage.

Option 2: CPA Firm

CPAs offer comprehensive financial oversight, making them an ideal choice for growing or established practices.

Benefits:

•     Strategic tax planning and business advice tailored to your practice.
•     Expertise in compliance and financial forecasting to support long-term growth.
•     Simplified management with one point of contact for bookkeeping and taxes.

Drawback:

•     Higher cost compared to bookkeepers, though the added value often outweighs the expense.

Next Steps for Delegating Bookkeeping

1. Assess Your Needs: Identify your practice’s financial pain points, such as insurance payment delays or disorganized records.
2. Interview Professionals: Ask about their experience with therapy practices, software proficiency, and communication style.
3. Implement Systems: Work with your chosen partner to establish workflows, integrate QuickBooks, and maintain clear reporting.

Final Thoughts

Delegating QuickBooks management allows you to focus on what matters most—delivering quality care to your clients. Whether you choose a bookkeeper or a CPA, the right partner will provide peace of mind, accurate financial records, and support for practice growth.

Shameless plug: I can’t write an article about bookkeeping and CPAs without mentioning my CPA firm, Angelo & Associates. We’ve been helping private practices for decades, we love our clients, and based on our reviews, they don’t think we’re too shabby either! Give me a call!