How Often Should Therapists and Coaches Reconcile Their Bank Accounts?

As a therapist or coach, you focus on helping your clients heal, grow, and thrive—but when it comes to managing your business finances, things can feel overwhelming. Bank reconciliation might not be at the top of your priority list, but ensuring your books match your bank statements is essential to keeping your business financially healthy.

So, how often should you reconcile your accounts? Let’s break it down.

Why Bank Reconciliation Matters for Therapists and Coaches

Whether you run a private practice, a coaching business, or a group therapy center, reconciling your bank accounts regularly helps you:

• Identify errors, missing client payments, or duplicate charges

• Detect fraudulent activity before it becomes a bigger issue

• Ensure you have enough cash flow to cover business expenses

• Keep your financial records accurate for tax season and financial planning

When your books are up to date and accurate, you can make informed business decisions without financial stress.

How Often Should You Reconcile?

The frequency of reconciliation depends on your business model and transaction volume. Here’s a simple guide for therapists and coaches:

• Weekly: Ideal for therapists and coaches who have frequent client sessions and receive payments via different platforms (credit cards, insurance reimbursements, bank transfers). Weekly reconciliation ensures you stay on top of payments and expenses.

• Biweekly or Monthly: If you have a steady but lower transaction volume (such as a part-time practice or coaching business with a few high-ticket clients), reconciling twice a month or monthly is sufficient.

• Quarterly or Annually: Not recommended! The longer you wait, the harder it is to track missing payments, forgotten invoices, or errors in your records.

Common Bank Reconciliation Issues & How to Fix Them

Even with regular reconciliation, issues can arise. Here are a few common ones and how to resolve them:

• Missing Client Payments – If a payment from a client or insurance company hasn’t arrived, double-check invoices, payment platforms, and bank transactions. Follow up as needed.

• Bank Errors – Banks can make mistakes! If you spot an incorrect transaction, contact your bank immediately.

• Duplicate Charges – Sometimes, a payment may be processed twice. Carefully review transactions to ensure you’re not overpaying expenses or mistakenly recording income twice.

• Fraudulent Charges – If you notice any unauthorized charges, report them to your bank right away and monitor your accounts closely.

What If My Books Don’t Match My Bank Statement?

If you find discrepancies during reconciliation, follow these steps:

• Double-check the transaction dates—some payments take time to clear.

• Look for processing fees, subscription deductions, or other auto-deductions that may have been missed.

• Review client payments and insurance reimbursements to ensure they were deposited correctly.

• Check for manual entry errors in your bookkeeping system.

If you still can’t balance your books, it might be time to bring in a bookkeeping professional to help.

The Cost of NOT Reconciling Regularly

Ignoring reconciliation can create financial headaches and even jeopardize your business’s stability. Here’s what can happen:

• Uncollected Payments – You might not realize that a client payment or insurance reimbursement never arrived.

• Overdraft Fees & Cash Flow Issues – If your financial records aren’t accurate, you might think you have more money than you actually do.

• Missed or Duplicate Expenses – This can lead to unnecessary financial loss.

• Tax Complications – Incorrect records can trigger IRS audits, underpayment, or penalties.

By reconciling your accounts regularly, you avoid these risks and keep your financial foundation strong.

Best Tools for Bank Reconciliation for Therapists & Coaches

You don’t have to manually track every transaction. Consider using accounting software to help with reconciliation:

• SimplePractice or TherapyNotes – If you accept payments through these platforms, ensure they sync with your bookkeeping records. However, make sure your mapping is setup correctly, so you don’t cause duplicate transactions in QuickBooks Online or Wave.

• QuickBooks Online - Integrates with your bank and simplifies reconciliation.

• Wave - A cheaper option for small businesses and solo practitioners. It does have an option to reconcile within the program.

• FreshBooks and Xero – I highly suggest not using these programs. They try to “automate” the reconciliation process and it does not work well. You will need to do a reconciliation outside the program if there is an issue. Trust me, just use Quickbooks Online or Wave, instead.

Using the right tools can save you time and reduce bookkeeping errors.

Need Help with Reconciliation? Let’s Talk!

As a therapist or coach, your time is better spent helping clients, not stressing over bank statements. If reconciling your accounts feels overwhelming, The Queen of Affordable Bookkeeping for Therapist and Coaches is here to help!

Book a free 15-minute consultation today and let’s get your finances in order!

Schedule your Consultation Today!

Running a successful practice or coaching business means keeping your finances organized. Regular reconciliation ensures your money is where it should be, giving you peace of mind—so you can focus on what you do best: supporting your clients.

If you’re ready to simplify your bookkeeping, reach out today—I’d love to help!