What Your Tax Preparer Needs From You | Year-End Checklist for Therapists in Private Practice
Tax season has a way of sneaking up, especially when you’re balancing a full caseload and the day-to-day responsibilities of running a private practice. One of the most common questions I hear from therapists is, “What does my tax preparer actually need from me?”
Surprisingly, it’s less than you think, and when you know what to focus on, the process becomes much calmer and more manageable.
Today, I am going to walk through exactly what your tax preparer needs in order to prepare an accurate tax return for your therapy practice. Think of this as a clear, practical checklist that supports good private practice bookkeeping, reduces stress, and helps you feel more confident heading into tax season.
Start With Clean Books
The single most important thing you can give your tax preparer is clean, accurate bookkeeping.
If you use an accounting system like QuickBooks, Xero, or another bookkeeping platform for therapists, this means making sure all of your transactions for the year are entered and categorized correctly. When your books are up to date, your tax return is far more likely to be accurate and complete.
At a basic level, clean books mean your income and expenses are coded into the correct categories. Office supplies should be office supplies. Software subscriptions should not be sitting in travel. Meals should not be mixed into marketing. These small details matter more than most therapists realize.
You’ll also want to confirm that your year-end bank and credit card balances match what’s shown in your accounting system. If they don’t, that’s a sign something is missing or duplicated and should be addressed before your tax return is filed.
If this feels like a lot to manage all at once, I break this down further in my post A Simple Bookkeeping Routine for Therapists That Keeps You Calm All Year, which walks through simple weekly and monthly habits that make year-end much easier.
Provide a Complete Income Picture
Your tax preparer needs to understand all of the ways money came into your practice during the year.
This includes:
Client payments
Insurance reimbursements
Group sessions or workshops
Trainings, consultations, or retreats
Digital products or other additional income streams
If you received any 1099s for work you performed outside your own practice, such as supervision or contract work, those should be included as well. A complete income picture ensures your tax return reflects reality and supports accurate reporting.
Share Your Business Expenses
Accurate accounting for therapists depends on clearly documented business expenses.
Common deductible expenses in a therapy practice include:
Office rent or shared space fees
Office supplies and furnishings
EHR systems and software subscriptions
Licensing, continuing education, and supervision
Website, marketing, and advertising costs
If you work from home, your tax preparer may also ask about home office expenses. A dedicated workspace can allow for deductions related to rent or mortgage interest, utilities, repairs, and maintenance. While this area can feel intimidating, once it’s set up properly, it tends to stay consistent year over year.
Flag Major Purchases and Year-End Items
It’s also important to flag any major purchases or year-end items, since these are handled a bit differently for tax purposes. This includes things like equipment purchases, such as a new laptop or office furniture, as well as any individual item that cost more than $2,500. Your tax preparer will also want to know your loan balances as of year-end, whether you used a vehicle for business or tracked mileage, and if you made any retirement contributions or paid health insurance premiums as a business owner.
For larger purchases, having receipts is important. For most everyday expenses that fall under the capitalization threshold, detailed receipts usually aren’t required.
Understand What You Don’t Need to Provide
This is where many therapists can take a deep breath.
You do not need:
Every single receipt printed and organized
Color-coded folders or elaborate spreadsheets
Perfect bookkeeping
What your tax preparer needs most is accuracy, not perfection. Providing a Profit and Loss statement, Balance Sheet, and sometimes a General Ledger is usually enough, along with year-end bank statements and loan summaries.
There’s No Shame in Needing Help
If your books feel messy or incomplete, you’re not alone. Most therapists were never trained in bookkeeping or taxes, yet private practice requires you to manage both.
As someone who works closely with therapists like you, helping them navigate the financial and accounting side of private practice, we are not here to judge, but to meet you where you are.
If you have questions or need support getting organized, feel free to reach out. I’m here to help make this process feel clearer and more manageable.
Until next time, be well.🌿
Explore My Resources:
💚 YouTube Channel: Practical videos designed to help therapists feel calmer and more confident with their numbers.
🌿 Website: Learn more about services, read additional blogs, or schedule personalized support.
