Bookkeeping

The Complete Chart of Accounts for Therapists

June 29, 2022
Bryce Warnes
Content Writer

Your chart of accounts lists all of the accounts you use to label entries in your general ledger. You can think of these accounts as bookkeeping categories, or labels for each transaction you record.

Every time your therapy practice earns revenue, it’s entered in the general ledger. Every time it spends money, it’s entered in the general ledger. By using the accounts listed in your chart of accounts to categorize these transactions, you can track how your practice earns and spends money.


Categories in your chart of accounts

Every account listed in your chart fits into one of the following five categories:

Account Category What it Describes Financial Statement
Assets Items of cash value (including actual cash!) your practice owns Balance sheet
Liabilities Debts your practice owes Balance sheet
Equity Money invested or re-invested in your practice Balance sheet
Income Money your practice earns P&L statement
Expenses Money your practice spends P&L statement


The chart of accounts

Heard is the financial back-office for therapists in private practice.

After working with over a thousand therapy practices, we’ve created the complete chart of account for therapists.

You can adapt this chart to your own needs by adding or removing categories. If you do, we’d love to hear about your experience—your feedback helps us develop even more useful tools for therapists. Feel free to drop us a line.


The complete chart of accounts for therapists

#* Account Description
Assets Appearing on the balance sheet
1010 Checking Cash in business checking account
1020 Savings Cash in business savings account
1030 Equipment Value of office equipment
2040 Credit Cards Outstanding credit card debt

#* Account Description
Liabilities Appearing on the balance sheet
2010 Sales Tax Withheld sales tax
2020 Student Loans Student loan payments (monthly)
2030 Other Loans All other loan payments
2040 Credit Cards Outstanding credit card debt

#* Account Description
Equity Appearing on the balance sheet
3010 Owner Contributions Original investment or business loan
3020 Retained Earnings For expenses and savings

#* Account Description
Income Appearing on P&L statements
4010 Client Fees One-on-one therapy sessions
4020 Sales Writing, speaking, research, teaching and training, coaching and consulting, dividends, interest

#* Account Description
Expenses Appearing on P&L statements
5010 Marketing Advertising, logo design, web design, photography, sponsorships, etc.
5020 Contractors Any contractors hired to work for the practice
5030 Bank Service Charges Normal service charges incurred in daily banking
5040 Liability Insurance Paid monthly
5050 Property Insurance Paid quarterly
5060 Legal Fees Lawyer on retainer, document signing service, etc.
5070 Accounting Fees Accountant and bookkeeper fees
5080 Legal and Professional Expenses (Other) All other legal/financial services
5090 Repairs and Maintenance To office and office equipment

#* Account Description
Expenses (Continued) Appearing on P&L statements
5100 Office Supplies Standard supplies and furnishings
5110 Rent Paid monthly
5120 Meals and Entertainment For business meetings
5130 Subscriptions and Dues Professional organizations, etc.
5140 Ongoing Education Courses, upgrades, etc.
5150 Reference Materials Books (print and digital)
5160 Business Permits, Licenses, etc. State and local permits and licenses (usually paid annually)
5170 Merchant Fees Charges from Stripe, Square, or POS services
5180 Phone Business phone bill
5190 Office Utilities Heat, electricity, and water (where not included in rent)
5200 Digital Services Web hosting, online booking, etc.
5210 Vehicle Gas and fuel, vehicle loan and loan interest, vehicle repairs, vehicle insurance, vehicle lease, wash and road services, vehicle registration, etc.
5220 Travel Hotel costs, rental car expenses, transportation costs, parking and tolls

* Account numbers are used by bookkeepers to more easily track accounts.

Heard handles bookkeeping, taxes, and payroll for your therapy practice—so you spend less time managing your finances, and more time focused on your clients. 

‍This post is to be used for informational purposes only and does not constitute legal, business, or tax advice. Each person should consult his or her own attorney, business advisor, or tax advisor with respect to matters referenced in this post.‍

‍Bryce Warnes is a West Coast writer specializing in small business finances.

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Heard

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software

and

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bookkeeping,

taxes,

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