What should I look at in my reports each month if I only have ten minutes?
Ten minutes is plenty. There are four things worth your attention, and you can look at them in this order.
Start with revenue. Compare the month to the month before it, and then compare it to the same month a year ago. That second comparison is the one most practice owners skip, and it is usually the more honest one. Practices have seasons. Late December and much of the summer often run light. January and September often run heavy. If you only compare to last month, a normal seasonal dip can feel like something is wrong. Comparing to the same month last year tells you whether the practice is actually growing.
Second, look at the expense lines that move. Plenty of your costs sit still every month, so you can skim right past rent and liability insurance. What changes is your software and EHR stack, contractor and associate payments, payroll if you have staff, and payment processing fees. Subscriptions creep quietly. I have opened books and found a practice paying for two scheduling tools and a note app nobody had logged into since spring.
Third, profit for the month. Revenue minus expenses, one number, and it answers the real question of whether the month worked.
Fourth, cash on hand. Profit and cash are two different things. A month can look profitable on paper and still feel tight because payments landed late or two payroll runs hit inside the same thirty days. Look at what is actually in the account and ask whether it covers what is coming.
You do not need to read the whole balance sheet every month, and you do not need to estimate what you owe in taxes while you are at it. That belongs with your tax preparer, and clean books are what makes their job simple. The purpose of your ten minutes is knowing whether the practice is steady, growing, or drifting.
This is the standard I hold myself to with full-service bookkeeping. Reports go out already reconciled, with the comparisons in place and a short note on what changed, so you can read them between sessions. If a number looks strange, send me a message and I will walk through it with you. Good bookkeeping for mental health professionals should give you back your attention rather than ask for more of it.
If you would like your monthly numbers to be that quick to read, book a consultation with me and we can talk about how your practice is set up right now.
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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
I'm a good therapist and my books are a disaster. How normal is that?
It is extremely normal. Clinicians spend years training for the work in the room and almost no time learning bookkeeping, so the money side is usually the part that slips. Catch-up work has a clear beginning and a clear end, and it says nothing about your skill as a clinician.
Read answerI've been running my practice through my personal checking account. How do I untangle it?
This is the most common thing practice owners tell me, and it is completely fixable. The fix has two parts, opening dedicated business accounts for everything going forward, and sorting the historical mix so the practice's real activity gets recorded properly.
Read answerWhat 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.
Read answerWhat does monthly bookkeeping actually do for a private practice?
Monthly bookkeeping keeps your books current, keeps your financials tax-ready, and gives you a clear view of how the practice is doing. Each month transactions get categorized, accounts get reconciled to the bank, and you get a short set of reports you can read between sessions.
Read answerHow do quarterly estimated taxes fit into my bookkeeping?
Your tax preparer calculates the amounts. Your books supply the current profit number those calculations depend on, and they keep the record of what you paid and when. When the books are months behind, every estimate turns into a guess.
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