Bookkeeping for Massage Therapists: 10 Best Practices

It is for this reason that I highly recommend Alicia Bishop and Therapeutic Bookkeeping. Alicia shows a level of care and compassion with each client which is hard to find in many professional services. Alicia stresses the importance of making sure each client understands their financial story in a way that is clear, comprehensive, and easy to understand. Alicia & Therapeutic Bookkeeping empower clients to feel in control of their finances.

However, with GoCardless in place, this significant sum will be making its way to your bank account quickly and smoothly without being chased up on multiple occasions. Suppose you opt to utilise massage therapy billing bookkeeping for massage therapists software. In that case, GoCardless integrates with more than 300 partners, including invoicing software like Xero and Quickbooks, which means that your payment platform operates front and centre across your business.

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Bookkeeping for massage therapists involves tracking your daily sales and expenses. If you’re an independent massage therapist, it may not be cost-effective to hire a bookkeeper. If you have a larger clinic, you may be able to delegate accounting to one of your staff. In either case, you need a system for keeping track of everything, and you need to monitor the numbers.

• You also don’t need to invest a lot of time into the task either.
• “As a LMT for over 30 years, I have found the appointment book specifically for MT’s to be invaluable. For example, the layout, the quotes, specific areas for information related to our profession, etc.”
• Massage therapists operating within the UK or Germany can also make use of Instant Bank Pay, the GoCardless solution for collecting one-off payments from customers’ bank accounts through the power of open banking.
• The accounting software you choose should be able to create an accounting journal, general ledger, balance sheet and profit and loss statement.
• Digital keeps it all on-hand from virtually every device you own, and you can find things without having to search a bunch of paper files.

This not only saves you time but also reduces the risk of errors that could cost you money in the long run. Massage therapy is a unique and rewarding profession that requires a lot of dedication and hard work. However, managing the finances of your massage therapy business can be time-consuming and overwhelming.

Top Accounting Software Options for Massage Therapists

Intent addresses how the purchase is intended to be used. If you buy a rug for your massage therapy practice, you can deduct the full cost. But, if you use the rug in your https://www.bookstime.com/ home, too, it’s considered a personal expense. If at a later date you decide to use the rug in your practice, you can deduct the fair market value, not the original cost.

The cost of small expenses, like music subscriptions, bank fees and postage, can add up fast. If you run a massage therapist business, then getting paid by your clients is of paramount importance. Accounting software for massage therapists can help to turn the invoicing, billing and payment process from one which is long and laborious to one which is quick and simple. Integration with your scheduling and booking software is essential to streamline your workflow. When your accounting software integrates with your scheduling software, you can easily sync appointments, track billable hours, and create invoices. Xero is a cloud-based accounting software package that caters to small businesses.

Taking Care of Your Taxes

Two examples of items listed are payments for massage sessions and office supply expenses. This can become a little complicated when you don’t receive payment at the time of service, which might happen if you bill insurance, for example. Again, keeping good records will help you avoid accidentally omitting paying tax on income or overpaying by paying the same tax in two tax years. Chances are you’re a cash-basis taxpayer, meaning you pay tax on the income at the time of receipt and deduct expenses when you write your check or from the date on your credit card statement. For tax purposes, however, you need to  remember that income isn’t taxed according to the date the service was provided but by the year in which payment is received.

Learn the basics of how to handle taxes for your massage therapy practice. I would recommend this service to any fellow clinic owners. As a clinic owner, the finances piece of the puzzle can be so overwhelming. With Therapeutic Bookkeeping, I understood how my clinic was doing and was able to make better business decisions.