The Best Accounting Software for Therapists: Free & Paid Options
Running a therapy practice is more than just seeing clients—you also have to keep your finances in check. But let’s be real, most therapists don’t love bookkeeping. They love the human connection of therapy. That’s where accounting software comes in. Whether you're just starting out and need a free option or you’re ready to invest in a paid service, there are plenty of tools that can make managing your finances easier.
There are different types of accounting software to consider, from free to paid, desktop to mobile. Some focus on basic expense tracking, while others offer invoicing, tax support, and even integration with practice management software. Let’s break down some of the best options out there so you can find the right fit for your practice.
Free Accounting Software for Therapists
If you're keeping things simple and don’t want to commit to a monthly subscription, free accounting software can be a great place to start. While these tools may not have all the bells and whistles, they can handle basic bookkeeping just fine.
Wave Accounting is one of the most popular free options out there. It lets you track income and expenses, send invoices, and run reports—all without spending a dime. The catch? It doesn’t have built-in tax tracking or advanced financial features, and it doesn’t integrate with many practice management systems. If you just need a straightforward way to track your money, though, it’s a solid choice.
Zoho Books also has a free plan, but it’s only available for businesses making less than $50,000 per year. It’s a step up from Wave in terms of automation and integrations, but once you start making more money, you’ll need to switch to a paid plan. If you’re just getting started, though, it’s a great way to get a feel for accounting software without a financial commitment.
Paid Accounting Software for Therapists
If you’re running a busy practice, a paid accounting tool can save you time and headaches. The right software can help you automate transactions, keep track of tax deductions, and even make tax season a little less painful.
QuickBooks Online is one of the best all-around options for therapists. It automatically syncs with your bank account, categorizes expenses, and helps you stay organized year-round. It also integrates with tools like SimplePractice, which makes it a great choice if you want everything in one place. While it does come with a monthly subscription fee, the time and stress it saves are often worth it.
Xero is another solid option, especially if you want something a little more user-friendly. It’s similar to QuickBooks but slightly cheaper, and it offers great invoicing and reconciliation features. However, it doesn’t have built-in payroll in the U.S., which can be a drawback if you have employees.
FreshBooks is a great option for therapists who bill hourly or offer coaching services in addition to therapy. It’s designed for service-based businesses and has excellent invoicing features, but it’s not as robust when it comes to full accounting needs. If your main priority is getting paid on time, though, it’s worth considering.
Desktop vs. Mobile Accounting Software
When choosing accounting software, think about whether you need something cloud-based or if a desktop program will work better for you.
QuickBooks Desktop is a good choice if you prefer having everything stored on your computer rather than online. It’s powerful and has advanced reporting features, but it’s not as easy to access on the go. If you work from one location and want a one-time purchase rather than a subscription, it might be a good fit.
For those who need to manage finances from anywhere, cloud-based options like QuickBooks Online, Xero, and Wave let you check your numbers from your phone or laptop. QuickBooks Online even has a mobile app where you can snap photos of receipts and track expenses in real time. If you travel between offices or like the idea of handling finances on the go, a cloud-based option is probably the way to go.
Why We Recommend QuickBooks Online for Therapists
At Grow the Books, we’ve worked with a lot of therapists, and QuickBooks Online is the accounting software we recommend most often. It saves time by automatically pulling in transactions from your bank and categorizing them, which means less manual work for you. It also integrates with payment processors like Stripe and PayPal, making it easy to get paid. Plus, it scales with your practice—whether you’re a solo therapist or running a group practice, it has the tools to grow with you.
Another reason we like QuickBooks Online is that it makes working with a bookkeeper (like us!) a breeze. Since everything is cloud-based, we can access your books in real-time, help you clean up any mistakes, and make sure everything is tax-ready before the deadline hits. If you’re tired of stressing over spreadsheets or just want to make sure you’re maximizing your deductions, we can help you set up QuickBooks and keep things running smoothly.
Final Thoughts
Choosing the right accounting software depends on how hands-on you want to be with your finances. If you’re just getting started and need something simple, Wave or Zoho Books might be all you need. If you’re looking for automation and more advanced features, QuickBooks Online or Xero could be a better fit. And if you’re feeling overwhelmed by the whole thing, you don’t have to go it alone—working with a bookkeeper can take a huge weight off your shoulders.