Chicago Mental Health Therapist Tax Prep, Bookkeeping & Accounting Services
Financial clarity for LPCs, LCSWs, LMFTs, psychologists and group practice owners. We track session income by payer, keep your books clean and file your taxes, so your attention stays on your clients.
Built for how a therapy practice runs
- Private pay, copays and insurance reimbursements tracked separately
- EHR and practice software costs categorized (SimplePractice, TherapyNotes)
- Quarterly estimated taxes calculated and planned
- Supervision, CEU and licensing deductions captured
- S corp election reviewed when your income supports it
- No client names or session notes ever needed
Certified on the platforms our clients use
Financial clarity for mental health therapists in Chicago
Running a mental health practice means managing more than client care. Licensed professional counselors, clinical social workers, marriage and family therapists, psychologists and independent therapists in Chicago face a financial environment general accountants rarely understand: session-based income, insurance reimbursements, sliding scale payments, EHR subscriptions and self-employment tax, all running at once.
Heard & Associates LLC provides tax preparation, bookkeeping and accounting services built specifically for mental health therapists in Chicago. Whether you run a solo private practice or a growing group clinic, we keep your records accurate, keep you compliant with IRS and Illinois requirements and make every tax season predictable.
This page is part of our wider support for therapists and solo practitioners. If you are still setting up your practice, our PLLC formation service covers the entity Illinois requires for licensed clinicians.
Bookkeeping, accounting and tax services for therapy practices
Income comes in from several directions in a therapy practice. We keep every stream organized and every deduction captured.
Therapist Bookkeeping
Session income categorized by payment type, EHR and software expenses tracked, bank and card accounts reconciled and monthly reports that show what your practice actually earns.
Bookkeeping services →Insurance Reimbursement Tracking
Payments from BCBS, Aetna, UnitedHealthcare and other carriers matched to your remittances, so underpayments and missing claims are caught, not forgotten.
Reconciliation services →Tax Preparation for Therapists
Self-employment and business returns with every clinical deduction claimed: supervision, CEUs, licensing, malpractice insurance, home office for telehealth and more.
Individual tax preparation →Quarterly Estimated Taxes
No one withholds tax from session fees. We calculate your quarterly payments and remind you before each deadline, so April brings no surprises.
Tax advisory →S Corp Election and Returns
Once practice income supports it, an S corporation can cut self-employment tax. We evaluate it, set it up and handle the 1120-S and payroll every year.
S corp tax preparation →Group Practice Accounting
Clinician revenue splits, 1099 contractors or W-2 associates, shared expenses and owner draws tracked so you know what each clinician and the practice contribute.
Payroll services →Tax deductions for therapists we track all year
Self-employed therapists face obligations W-2 employees never deal with, and missed deductions are the most common way they overpay. These are the ones we make sure are captured:
- Clinical supervision hours and consultation fees
- Continuing education, CEUs and conference costs
- Professional licensing, renewals, dues and memberships
- Malpractice and liability insurance premiums
- EHR and practice management software (SimplePractice, TherapyNotes, TheraNest)
- Office rent, or the home office deduction for telehealth sessions
- Telehealth platforms, phone and secure email
- Marketing, directory listings and website costs
Your bookkeeper never needs client names
HIPAA worries stop many therapists from outsourcing their books. They should not. Bookkeeping works from bank feeds, remittance totals and software invoices, not from session notes or client records.
We never ask for client names, diagnoses or claim-level detail. Income is tracked by payer and payment type, which is all a clean set of books requires.
Ask how we keep books HIPAA-safe →Is an S corp right for your therapy practice?
Many therapists in private practice operate as sole proprietors or single-member PLLCs and pay self-employment tax on their full net income. Once practice income reaches a certain level, electing S corporation status can meaningfully reduce that burden by splitting income between a reasonable salary and owner distributions. It is one of the most significant planning opportunities available to therapists, and one of the most misunderstood.
We help you evaluate whether the election makes sense at your income level, walk through the payroll and filing requirements that come with it and handle the bookkeeping and S corp tax preparation as a complete package once you are set up.
Getting started takes one call
Our simple Discovery, Proposal, Setup process gets your practice onboarded without interrupting your client schedule.
Discovery call
We learn how your practice bills, which software you use and where your books and taxes stand today.
Proposal
A clear scope for bookkeeping, tax and planning, sized to a solo practice or a group clinic.
Setup
We connect your bank, card and payment accounts and build income categories by payer type.
Monthly rhythm
Books closed each month, estimates reviewed each quarter and returns filed on time every year.
What to look for in an accountant for therapists
Plenty of firms will take a therapy practice as a client. These are the qualities that matter once the work starts.
Therapy practice experience
Books that match your remittances
A real person who answers
Confidential by design
Taxes and books together
Supporting every Chicago mental health professional in private practice
We work with the full range of clinicians operating independently or in group settings across Chicago and the surrounding area, including:
- Licensed Professional Counselors (LPCs) and Licensed Clinical Professional Counselors (LCPCs)
- Licensed Clinical Social Workers (LCSWs)
- Licensed Marriage and Family Therapists (LMFTs)
- Psychologists (PsyD and PhD)
- Psychiatrists in private practice
- Art therapists and play therapists
- Group practice owners managing multiple clinicians
Wherever your practice is right now
Newly licensed and opening your first private practice? We set up your entity, books and estimated taxes so you start clean. Transitioning from an agency or hospital to independent work? We explain what changes when your income shifts from a W-2 to session fees.
Managing a growing group clinic? We track clinician splits, contractor payments and payroll, and prepare the business and owner returns together. Behind on your records? Our bookkeeping cleanup service and unfiled tax return service get you current first.
Rated 5.0 by 100+ clients on Google
Therapists and practice owners describe a team that explains the numbers clearly, answers quickly and keeps their books accurate all year.
Therapist bookkeeping and tax questions
Every practice is different. If your question is not here, ask us during a consultation.
Book a consultation →Do therapists need a specialized bookkeeper?
A general bookkeeper can record transactions, but therapy practices have income from private pay, copays, sliding scale fees and insurance remittances that arrive weeks after sessions. Without categories built for that, reports overstate or understate what you earned. A bookkeeper who knows practice billing catches underpaid claims and keeps your tax return accurate.
Is Heard & Associates the same as Heard (joinheard.com)?
No. Heard & Associates LLC is an independent tax, accounting and bookkeeping firm in Chicago, founded by Darrel Heard, with offices in Hyde Park and Olympia Fields. Heard (joinheard.com) is a separate national online bookkeeping platform for therapists. If you are comparing the two, we offer a local team you can meet in person, with business and personal tax preparation included rather than handled separately.
What can a therapist in private practice deduct?
Common deductions include clinical supervision, continuing education and CEUs, licensing and membership dues, malpractice insurance, EHR and telehealth software, office rent or a home office used for telehealth, marketing and directory listings, and the business portion of phone and internet. Retirement plan contributions and health insurance premiums are often deductible for self-employed therapists as well.
How do you handle insurance reimbursements in the books?
Each payer is tracked separately and reconciled to its remittance statements, not just to bank deposits. That shows exactly what BCBS, Aetna or other carriers paid, what is still outstanding and where a claim was underpaid, so your reports reflect real practice revenue.
Do you need access to client records or session notes?
No. Bookkeeping uses bank and card feeds, payment processor totals and remittance summaries. We never ask for client names, diagnoses or notes, which keeps your books accurate without touching protected health information.
Should my therapy practice be an S corp?
It can make sense once your net practice income is high enough that the self-employment tax savings outweigh the cost of running payroll and filing a separate return. We compare both options using your actual numbers before recommending anything. See our S corp tax preparation page.
Do you work with group practices and psychologists?
Yes. For group practices we track clinician revenue splits, 1099 contractor or W-2 associate payments, shared expenses and owner draws, and prepare the business and owner returns together. We also work with psychologists, psychiatrists and other mental health professionals, whose books and deductions follow the same structure.
Do I need a PLLC in Illinois?
If you hold an IDFPR license, Illinois generally requires a Professional Limited Liability Company rather than a standard LLC, even for a solo practice. Our PLLC formation service handles both state registrations and the tax setup that follows.
Do I have to be in Chicago to work with you?
No. Most therapists work with us through our secure portal and video calls, which fits a clinical schedule. If you prefer to meet in person, we have offices in Chicago’s Hyde Park and in Olympia Fields.
Get your practice finances in order
Book a consultation and we will review how your practice bills, where your books stand and what your next tax return needs.