Home > Blog > 10 Best Accounting Software for Therapists in 2025: A Complete Guide

10 Best Accounting Software for Therapists in 2025: A Complete Guide

Author: Angela M. Doel, M.S., Psychotherapist

Have your progress notes written for you automatically

Managing finances effectively is a critical aspect of running a successful therapy practice. From invoicing and expense tracking to tax preparation and financial reporting, the right accounting software streamlines a therapist’s operations and saves valuable time. With so many options available, choosing the best software for a practice’s unique needs can feel overwhelming. This comprehensive guide details the ten best accounting software solutions for therapists in 2025.

1. QuickBooks Online

One of the most popular accounting solutions on the market. QuickBooks has a user-friendly interface and comprehensive features that easily meet the needs of solo therapists and group practices. The platform provides tools for seamless financial management, such as income and expense tracking, invoicing, and reconciliation, all accessible from any device with an internet connection.

For solo therapists, QuickBooks Online simplifies managing finances by automating tasks like tracking client payments, categorizing expenses, and preparing for tax season. It also offers customizable invoicing templates that allow therapists to maintain a professional image while keeping cash flow organized.

Group practices can leverage the platform to handle the complexities of managing multiple providers. Features like payroll integration, team collaboration tools, and comprehensive reporting help streamline operations. Group practices can track individual provider revenues and expenses, ensuring accurate financial oversight across the practice.

With integrations like Stripe and PayPal, as well as the ability to connect directly to bank accounts, QuickBooks Online ensures real-time updates, reducing the chances of errors and saving time. Detailed reporting and budgeting features empower therapists to make informed financial decisions, set goals, and grow their practice with confidence.

Key Features:

Automated invoicing and payment reminders
Expense tracking with receipt capture
Tax preparation tools, including automatic categorization
Customizable financial reports
Integration with third-party apps

Best For: Therapists seeking a versatile, user-friendly accounting platform.

Pricing: Starts at $25/month.

2. Xero

This cloud-based accounting software is known for its clean, intuitive interface and a suite of features designed to meet the needs of small businesses, including solo therapists and group therapy practices. Its user-friendly design makes navigating complex financial tasks straightforward, even for those without a background in accounting.

One of Xero's standout features is its real-time bank reconciliation, which automatically matches transactions from your linked bank account, saving time and reducing errors. This capability ensures that therapists always have an up-to-date view of their practice's financial health. Xero enables users to create and customize professional invoices, set up automated reminders for overdue payments, and accept online payments directly through platforms like Stripe and PayPal.

Xero excels in scalability and collaboration. For group practices, its multi-user functionality allows team members and external accountants to access the system securely, supporting seamless financial management and oversight. Its extensive library of third-party integrations enhances functionality, connecting with tools like scheduling software, expense trackers, and customer relationship management (CRM) systems, making it a versatile choice.

With features like comprehensive reporting, expense tracking, and payroll integration, Xero provides therapists with all the tools necessary to streamline administrative tasks, monitor cash flow, and make informed decisions about their practice's growth. Xero offers the flexibility and functionality to support the needs of a solo therapist seeking simplicity or a group practice requiring more advanced financial solutions.

Key Features:

Real-time bank feeds for easy reconciliation
Customizable invoicing templates
Built-in expense management tools
Collaboration tools for working with an accountant
Mobile app for on-the-go access

Best For: Therapists who value collaboration and mobile functionality.

Pricing: Starts at $13/month.

3. Wave Accounting

This free, cloud-based accounting solution is well-suited for solo and/or new therapists in private practice. Its affordability and many useful features make it an excellent choice for therapists looking to manage their finances without a significant upfront investment.

Wave provides essential accounting tools like income and expense tracking, invoicing, and receipt scanning. The platform’s intuitive design ensures that even therapists with minimal accounting experience can navigate its features with ease. Therapists can quickly generate professional-looking invoices, track payments, and categorize expenses, keeping their financial records organized and ready for tax season.

One of Wave’s standout features is its seamless bank account integration, which allows users to connect their accounts and credit cards for automatic transaction syncing. This eliminates manual data entry, saving time and reducing errors. Wave offers financial reporting capabilities, enabling solo therapists to monitor cash flow, view profit and loss statements, and make data-driven decisions for their practice.

For therapists ready to grow their practice, Wave offers optional paid add-ons such as payroll processing and credit card payment processing, which integrate with the free accounting tools. These features make it easy to scale financial management as the practice expands.

Wave’s accessibility and free core features make it a practical and appealing option for therapists just starting out or those operating on a tight budget. It’s a reliable solution for managing the day-to-day financial needs of a small practice while keeping overhead costs low.

Key Features:

Free invoicing and receipt scanning
Basic financial reporting
Integration with payment processors
Customizable client statements
Unlimited collaborators

Best For: Solo practitioners looking for a cost-effective solution.

Pricing: Free for core features; payment processing incurs additional fees.

4. FreshBooks

FreshBooks has an intuitive interface and a comprehensive suite of accounting tools designed to simplify financial management. It’s particularly attractive for solo therapists and small group practices, as its features cater to the specific needs of service-based professionals who prioritize efficiency and ease of use.

FreshBooks excels at automating time-consuming tasks, such as invoicing, expense tracking, and client payment processing. With its customizable invoicing options, therapists can create professional-looking invoices that reflect their branding, set up automated reminders for overdue payments, and offer clients the convenience of online payment options. These features help maintain a steady cash flow while reducing administrative burden.

FreshBooks stands out for its time-tracking feature, which is particularly beneficial for therapists who bill hourly. The platform allows you to log billable hours directly into client profiles, ensuring accurate invoicing and integration with other financial data. FreshBooks includes expense tracking with receipt capture, helping therapists stay organized and prepared for tax season. Its multi-user support enables small group practices to grant access to team members or external accountants securely for seamless collaboration.

The platform’s reporting tools provide valuable insights into financial performance, such as profit and loss statements, cash flow reports, and expense summaries, empowering therapists to make informed decisions about their practice’s growth. FreshBooks is designed to evolve with growing practices, offering various pricing plans.

Key Features:

Time tracking and billing integration
Recurring invoices and automatic payment reminders
Expense categorization and tracking
Tax-friendly reporting
Mobile app for managing finances on the go

Best For: Therapists who need time tracking and easy invoicing.

Pricing: Starts at $17/month.

5. TherapyPartner

Designed specifically for therapists, TherapyPartner integrates practice management and accounting tools into one comprehensive platform, offering a streamlined solution for managing clinical and financial aspects of a therapy practice. This specialized software is designed to address the unique needs of mental health professionals, making it an ideal choice for therapists looking for an all-in-one solution.

TherapyPartner simplifies billing and accounting by automating essential financial tasks such as invoicing, insurance claim processing, and payment tracking. Its user-friendly dashboard provides therapists with a clear view of their practice’s financial health, allowing them to monitor revenue, track expenses, and generate reports. The platform supports electronic claim submission, reducing the time and effort required for reimbursement.

TherapyPartner offers tools to streamline client scheduling, appointment reminders, and session notes. The integration between scheduling and billing ensures that sessions are automatically billed, minimizing administrative errors and saving valuable time. This integration is particularly beneficial for therapists managing a solo or group practice, as it reduces the need for juggling multiple systems.

TherapyPartner offers features that adhere to industry standards, including HIPAA-compliant data storage and communication tools, providing therapists with a sense of security when handling sensitive client information. Its specialized design ensures that all features are relevant to the workflows and challenges of therapy practices, unlike generic accounting or practice management tools. By combining accounting features with practice management capabilities, TherapyPartner helps therapists focus more on their clients and less on administrative tasks.

Key Features:

Automated billing and invoicing
Insurance claim management
Integrated appointment scheduling
Financial reporting for therapy practices
HIPAA-compliant features

Best For: Therapists looking for an all-in-one solution.

Pricing: Starts at $65/month.

6. Zoho Books

Zoho Books offers a comprehensive suite of accounting features, making it an excellent choice for therapists seeking a customizable solution to meet their practice management needs. Designed for small businesses, Zoho Books combines affordability, flexibility, and advanced functionality, catering to both solo practitioners and group therapy practices.

One of the standout features of Zoho Books is its highly customizable interface, allowing therapists to tailor the software to match their specific workflows. From personalized invoice templates to configurable financial reports, Zoho Books provides the tools needed to maintain a professional image and gain deeper insights into the practice’s financial health. Its intuitive dashboard offers a clear overview of key metrics, such as cash flow, outstanding invoices, and expense tracking.

Zoho Books excels in automating routine accounting tasks, such as invoicing, payment reminders, and expense categorization. Therapists can easily send branded invoices, accept online payments, and track overdue accounts, streamlining the billing process while improving cash flow. Integration with multiple payment gateways ensures clients have a variety of convenient payment options.

For therapists managing a growing practice, Zoho Books includes advanced features like project-based billing, time tracking, and multi-user collaboration. These capabilities are useful for group practices that require team members or external accountants to access financial data. Zoho Books integrates with other Zoho products, like Zoho CRM and Zoho Analytics, creating an ecosystem of tools to support every aspect of practice management.

Compliance and security are top priorities with Zoho Books. The platform offers audit trails, secure data storage, and tax compliance tools to ensure therapists meet industry and regulatory requirements. Customizable reports, such as profit and loss statements, balance sheets, and tax summaries, further simplify financial planning and tax preparation.

Key Features:

Automated workflows for invoicing and payment reminders
Expense tracking with receipt uploads
Bank reconciliation and financial reporting
Client portal for invoicing and communication
Integration with Zoho CRM and other Zoho apps

Best For: Therapists who prefer customizable and scalable software.

Pricing: Starts at $15/month.

7. SimplePractice (Accounting Features)

SimplePractice is widely recognized as a comprehensive practice management tool designed specifically for therapists, and it also includes essential accounting features that cater to their financial needs. While its primary focus is on streamlining clinical workflows, such as scheduling, documentation, and client communication, its built-in financial tools make it a one-stop solution for solo practitioners and group practices.

One of SimplePractice’s accounting features is its integrated billing system, which automates the process of creating, sending, and tracking invoices. Therapists can generate professional invoices for sessions, add adjustments for late cancellations or no-shows, and accept payments directly through the platform. With multiple payment options, including credit cards and ACH transfers, SimplePractice simplifies client payments and improves cash flow management.

SimplePractice streamlines insurance claim submissions and tracking. The platform supports electronic claims filing and automatically calculates client co-pays and deductibles, reducing the administrative burden of managing insurance reimbursements. The integration of billing and insurance features ensures that financial records are accurate and current, saving therapists time and effort.

The platform’s reporting tools allow therapists to track income, expenses, and client balances. These financial insights help therapists monitor their practice’s financial health and prepare for tax season. Users can export financial data to integrate with dedicated accounting software like QuickBooks or Xero, offering flexibility for those who require more advanced financial analysis.

What sets SimplePractice apart is its seamless integration of accounting features within a broader practice management system. Therapists can manage their entire practice—scheduling, client notes, billing, and payments—from a single platform, eliminating the need to juggle multiple platforms. Its user-friendly interface and HIPAA-compliant design ensure that therapists can manage their finances securely and efficiently while maintaining focus on client care.

Key Features:

Automated billing and invoicing
Integrated payment processing
Expense tracking and categorization
Financial reports for tax preparation
HIPAA-compliant client data management

Best For: Therapists already using SimplePractice for practice management.

Pricing: Starts at $29/month for basic features.

8. Kashoo

This straightforward yet highly effective accounting platform was designed with small business owners and independent professionals in mind. Therapists seeking a straightforward solution to manage their practice's finances without the steep learning curve often associated with more complex systems find it appealing due to its focus on automation and ease of use.

One of Kashoo’s standout features is its automatic transaction categorization. By linking bank accounts and credit cards, the platform uses machine learning to categorize transactions intelligently, saving time and effort in manual data entry. This feature ensures that financial records are always organized and up to date, making it easy to track income and expenses at a glance.

Kashoo simplifies invoicing, enabling therapists to create, send, and track invoices directly from the platform. Recurring invoice options are particularly helpful for ongoing client relationships, allowing for consistent and automated billing. Clients can make payments online, and Kashoo automatically records these payments, keeping your accounts accurate and reducing administrative overhead.

The platform's user-friendly interface is designed to make accounting accessible for non-accountants. Therapists can easily generate essential financial reports, such as profit and loss statements and cash flow summaries, to gain insights into their practice's financial health. Reports can be exported for tax preparation or collaboration with an accountant.

Kashoo’s emphasis on simplicity doesn’t come at the expense of functionality. Features like multi-currency support and real-time collaboration make it suitable for a wide range of practices, from solo practitioners to small group practices with diverse needs. Its secure cloud-based platform ensures that financial data is accessible from any device, allowing therapists to manage their finances on the go.

Key Features:

One-click financial reports
Real-time expense tracking
Automated bank reconciliation
Multi-currency support
Integration with Square and Stripe for payments

Best For: Therapists who want straightforward accounting without unnecessary complexity.

Pricing: Starts at $20/month.

9. ClinicSource

This comprehensive practice management and accounting tool is specifically designed for healthcare professionals, including therapists. Its all-in-one platform simplifies the administrative and financial aspects of running a practice.

ClinicSource integrates powerful accounting tools that streamline billing and financial management. The platform supports both insurance and private pay billing, with features for electronic claim submission, tracking, and processing. For therapists who manage a mix of insurance and self-pay clients, ClinicSource automatically calculates co-pays, deductibles, and insurance reimbursements, reducing manual errors and saving valuable time.

ClinicSource excels in revenue cycle management, offering real-time insights into claims status and payment trends. Detailed financial reporting tools allow therapists to monitor cash flow, revenue, and expenses with ease. The platform's user-friendly design and cloud-based accessibility mean that therapists can manage their practice from anywhere, whether on a desktop or mobile device. HIPAA-compliant security measures ensure that sensitive client information is protected, providing peace of mind to both practitioners and their clients.

For group practices, ClinicSource offers multi-user support, allowing team members to collaborate on scheduling, documentation, and billing tasks. This scalability makes it an ideal solution for practices of all sizes, from solo therapists to larger multi-provider organizations. By combining practice management and accounting in one integrated platform, ClinicSource provides therapists with the tools they need to streamline operations, improve financial efficiency, and enhance client care.

Key Features:

Customizable invoicing and billing
Insurance claim submission and tracking
Financial reporting and analytics
Appointment scheduling integration
Secure client communication

Best For: Therapists managing insurance claims alongside accounting.

Pricing: Base package starts at $79.95/month for the first user

10. Patriot Accounting

This affordable and user-friendly solution is well-suited for small practices, including solo therapists and small group practices. Designed with simplicity in mind, Patriot Accounting offers a streamlined platform that allows users to manage their finances without needing extensive accounting experience.

With budget-friendly pricing plans, the platform delivers essential accounting tools without unnecessary complexity, providing excellent value for small practices operating with limited resources. Despite its straightforward design, Patriot Accounting doesn’t compromise on functionality, offering a comprehensive set of features to handle day-to-day financial tasks efficiently.

The platform includes essential tools for invoicing, expense tracking, and bank reconciliation, enabling therapists to keep their financial records organized and accurate. Its automated features, such as recurring invoicing and transaction categorization, save time and reduce the risk of errors. These tools are helpful for therapists managing their own books alongside their clinical responsibilities.

Patriot Accounting offers payroll integration, allowing group practices to manage employee salaries, tax withholdings, and other payroll-related tasks with ease. The platform ensures compliance with tax regulations and provides the necessary forms and reports for tax filing, which is a significant advantage for practices that employ administrative staff or additional providers.

With its intuitive dashboard and user-friendly navigation, Patriot Accounting makes it easy for therapists to generate financial reports, such as profit and loss statements and cash flow summaries. The platform’s cloud-based accessibility ensures that users can manage their finances from anywhere. Patriot Accounting provides reliable customer support, offering guidance and troubleshooting to help users maximize the platform’s benefits.

Key Features:

Easy-to-use interface with core accounting tools
Expense tracking and categorization
Invoice generation and payment tracking
Built-in payroll integration
Tax-friendly financial reporting

Best For: Budget-conscious therapists who need reliable accounting tools.

Pricing: Starts at $20/month.

How Should You Choose the Best Accounting Software for Your Practice?

Selecting the right accounting software depends on your practice’s needs. Here are some factors to consider:

1. Practice Size: If you are a solo therapist, you may benefit from simpler, cost-effective options like Wave or Kashoo, while larger practices may require more features from platforms like TherapyPartner or ClinicSource.

2. Integration Needs: If you already use practice management software, look for accounting tools that integrate seamlessly with your existing systems.

3. Budget: Determine your budget and weigh the costs against the software’s features and potential efficiency gains.

4. Ease of Use: Prioritize platforms with intuitive interfaces to minimize the learning curve and reduce administrative burdens.

5. Features: Identify your must-have features, such as invoicing, expense tracking, or tax preparation tools.

6. Security and Compliance: Ensure the software meets HIPAA standards and has robust data security measures to protect sensitive client information.

Emerging Trends in Accounting Software for Therapists

As technology evolves, accounting software continues to incorporate innovative features that can benefit therapists:

AI-Powered Insights: Advanced analytics to help therapists understand financial trends and optimize their practices.

Automation: Increasing automation for tasks like invoicing, payment reminders, and tax categorization.

Mobile Accessibility: Enhanced mobile apps to allow therapists to manage finances on the go.

Integrated Platforms: All-in-one solutions combining practice management and accounting tools for seamless workflows.

Final Thoughts

Managing your practice’s finances doesn’t have to be overwhelming. With the right accounting software, you can save time, reduce errors, and focus on providing the best possible care to your clients. Whether you’re a solo therapist or running a group practice, the above options offer something for everyone. Evaluate your needs, test out demos, and invest in a platform that will support your practice’s growth and success.