Bookkeeping and payroll for mental health professionals in private practice

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How many sessions a week does my practice actually need?

The arithmetic is simple. Having honest numbers to put into it is the harder part.

Start with what the practice has to bring in each month. Add your real overhead, the pay you want to take home, and the tax reserve your tax preparer has you setting aside. Divide that total by what you actually collect per session on average, and you have the number of sessions you need in a month. Divide that by about 4.3 and you have your weekly number.

Here is how it looks with real figures. Say overhead runs $1,800 a month for rent, your EHR, liability insurance, phone, CEUs, and the rest of your software. You want $7,000 in take-home pay. Your tax preparer has you reserving $2,300. That means the practice needs to collect $11,100 in the month. If your average collected amount per session is $122, you need about 91 sessions a month, which is roughly 21 a week.

That $122 is where most of these calculations fall apart. Your posted fee might be $150, and very few practices collect the full fee on every single session. Sliding scale spots, contracted rates, no-shows, late cancellations, and balances that never get paid all pull the average down. The number you want is total money collected divided by total sessions held over at least three months. That is exactly the kind of figure monthly bookkeeping hands you, because it comes from what actually landed in the bank rather than what was scheduled.

It is worth running the annual version too. Overhead runs all twelve months while most clinicians work something like 45 to 48 weeks. At 91 sessions a month, you are looking at around 1,092 sessions a year, and spread across 46 working weeks that is closer to 24 a week. The weeks you take off get paid for by the weeks you work.

As for benchmarks, a sustainable full caseload is commonly described as somewhere around 18 to 22 sessions a week, with full-time monthly counts landing near 60 to 80 sessions. Those are figures people in the field cite, and they are worth checking against your own specialty, your documentation load, and your setting, because they vary quite a bit.

If the math asks for more sessions than you can hold well, that is information about your fee, your overhead, or how your practice is built. What you do with it belongs to you. Bookkeeping for therapists comes down to this for me. I keep the numbers clean and honest so that when you sit down with a question this important, you are working from what really happened in your practice instead of a guess.

If you would like help getting to those real numbers, book a consultation with me and we can look at what your practice is actually earning per session.

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Tell me where your books stand right now, even if the honest answer is that nobody has looked at them in a year. I'll ask a few questions and give you a clear idea of how I can help.

More Questions

What does tax-ready books mean if you don't do taxes?

Tax-ready means the books are complete, categorized, reconciled, and documented before your tax preparer ever opens the file. I keep the records right all year so your preparer does the tax work quickly and with very few questions.

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How much should I set aside from each payment so taxes never surprise me?

Common guidance runs 25 to 30 percent of profit, and your tax preparer should confirm the right figure for your situation. The percentage applies to profit rather than to the full deposit, so knowing your real profit number is what makes the reserve accurate.

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What is a healthy overhead percentage for a practice?

Common guidance puts overhead under roughly 32 percent of revenue for a lean solo practice, with group practices running higher. Treat that as a starting reference to verify, since the number that actually helps you is your own, tracked month after month.

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Why does it matter that my bookkeeper knows mental health?

It saves you from explaining your own practice before you can ask a question, and it keeps your books categorized in the language of a practice rather than a generic business. After more than 15 years as a nurse in mental health, the learning curve happened long before my first bookkeeping client.

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How should insurance payments show up in my books if you don't do billing?

I don't do insurance billing, claims, ERA posting, or credentialing. That work stays in your practice management system or with your biller. What bookkeeping does is reconcile what that process produces, matching every payer deposit that reaches your bank against what your records say you were paid.

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Can you run payroll for my group practice?

Yes, as long as your payroll system is already up and running. Aretha processes payroll every pay period and makes sure it posts correctly in your books. She does not handle initial payroll system setup, so a brand new practice would establish that first with its provider.

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AD Keeps The Books is Aretha Dirden, a bookkeeper who spent more than 15 years as a licensed nurse in mental health before taking over the books for the people doing that work. She handles monthly bookkeeping, catch-up and clean-up work, and payroll for therapists, psychologists, counselors, and clinical social workers in private practice, and she does the work herself for every client. Based in Lancaster, California, serving practices nationwide. QuickBooks ProAdvisor certified.

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