Do I Need QuickBooks for My PT, OT, or SLP Private Practice?

Possibly not when you're first starting. QuickBooks can make bookkeeping easier, but many new PT, OT, and SLP private practices can track their finances perfectly well with a well-designed spreadsheet.

What Does QuickBooks Do?

QuickBooks is one of the most widely used accounting software programs for small businesses in the United States. It has a lot of features and integrates with many other business tools.

With QuickBooks, you can connect your bank and credit card accounts, import and categorize transactions, reconcile accounts, and produce financial reports, just to name a few of its features.

What About Other Accounting Software?

Of course, there are alternatives such as Xero and Zoho Books. Each has different features and integrations, but either may be perfectly suitable for a private practice.

Can I Use a Spreadsheet Instead?

For businesses just starting out that simply want to track income and expenses, I often recommend a simple spreadsheet.

For a solo practice with just a checking account, a credit card, and relatively few transactions, a spreadsheet could be the perfect solution. You don't necessarily need to pay for accounting software just because you started a business.

I have a bookkeeping spreadsheet I use with some new practice owners who aren't ready for QuickBooks. It provides a structured way to track transactions and organize the information needed for their bookkeeping and taxes.

When Should I Move to QuickBooks?

For PT, OT, and SLP practice owners, the factors I would consider most are time savings, complexity, delegating roles, and your business structure.

If maintaining your spreadsheet is starting to take several hours each month, that's usually a sign it's time to consider accounting software. The same is true as your finances become more complicated. Adding additional bank accounts, a loan, payroll, or a growing volume of transactions can each make a spreadsheet harder to keep accurate and current.

Your business structure matters here too. A sole proprietor with simple, low-volume finances can often stick with a spreadsheet longer. As you add an S-corp election, multiple owners, payroll, or other complexity, maintaining a complete set of books becomes more important. Accounting software can make that easier.

The ability to delegate is another reason to make the switch. If you want an office manager or bookkeeper to take over some of the bookkeeping, accounting software makes it easier to collaborate and maintain control over the records.

What Is Best for Your Private Practice?

Don't choose software because you think a "real business" is supposed to use QuickBooks. Choose the system that lets you maintain accurate records without creating unnecessary work.

For many new private practices, that may be a spreadsheet. As the practice grows and the bookkeeping becomes more time-consuming or complicated, accounting software may start to make more sense.

Need Help Getting Started?

If you're starting a private practice and aren't sure how to set up your bookkeeping, I offer bookkeeping support for new practice owners. I can help you decide on a bookkeeping system, get it set up, and understand what you need to keep track of going forward.