For private practice
Accounting for psychologists, psychiatrists, and therapists.
Private practice operates differently than retail or consulting. Insurance reimbursement timing, PC/PLLC entity rules, supervisee classification, and practice-specific deductions all need someone who understands clinical practice — not generic bookkeeping. Cleared delivers integrated books, tax, and credentialed financial planning from a single Enrolled Agent and CERTIFIED FINANCIAL PLANNER™.
Who we serve
Licensed clinicians running their own practice.
- ✓Solo private-practice psychologists
- ✓Psychiatrists in private practice or DPC models
- ✓LMFTs, LPCs, LCSWs, and licensed therapists
- ✓Group practices with W-2 or 1099 supervisees
- ✓Cash-pay practices and insurance-network practices
- ✓Practices generating $100K+ in net professional income
The private-practice tax problem
Four issues
generic accounting misses.
Insurance reimbursement timing distorts your P&L.
Billing $30K in a month doesn't mean you earned $30K. Without proper reconciliation between billed claims, EOBs, contractual adjustments, and deposits, your P&L tells you the wrong story — and your tax planning is based on phantom revenue.
Most accounting services don't do real planning.
Clean books and a filed return is the floor, not the ceiling. Strategic tax planning — entity optimization, retirement plan design, multi-year projections, and S-corp salary methodology — requires a credentialed planner. Many private-practice accounting services skip this entirely.
PC/PLLC rules are state-specific and easy to get wrong.
Most states regulate ownership of professional entities tightly. The wrong structure can void licensing, create personal liability, or trigger needless tax inefficiencies. The right structure depends on state rules, employee count, and income level.
Supervisee classification is a six-figure liability risk.
Calling a clinician a 1099 when the IRS would say W-2 creates back payroll tax exposure plus penalties. Most practice owners never document the classification methodology — until an audit forces them to.
How we're different
Built around a credentialed advisor — not a checklist.
Real tax planning, not just tax prep.
The Tax Planning engagement is a $5,000 strategic review — entity structure, salary methodology, retirement plan design, multi-year projections, and a written plan you can act on. Available to qualifying clients.
CFP®-level retirement integration.
Solo 401(k), SEP-IRA, Safe Harbor, cash balance — the right plan depends on your full financial picture. Because we're a CFP®, we coordinate practice retirement plans with your personal financial life instead of punting to a separate advisor.
Fast, named-advisor response.
Email your designated advisor — not a ticket queue. 48-hour response on standard questions; 24-hour response for active tax-prep and planning clients.
Why this matters
An EA and a CFP®, working from one set of numbers.
Most accounting services for therapists do bookkeeping and tax filing. That's the floor. Real planning — entity structure, retirement design, S-corp reasonable salary methodology, multi-year projections — requires a credentialed planner, not a junior bookkeeper running a checklist.
Raman Singh holds both credentials: Enrolled Agent (the IRS's federally-licensed tax practitioner) and CERTIFIED FINANCIAL PLANNER™. The result is a single advisor who sees your books, your tax position, and your financial plan as one system.
Bookkeeper vs CPA vs EA vs EA+CFP® — the differences →Common questions from private-practice owners
Should my private practice be a PC, PLLC, or sole proprietorship?
Most states require licensed mental-health providers operating with multiple owners or employees to use a Professional Corporation (PC) or Professional LLC (PLLC). The right entity depends on your state's licensing rules, whether you have employees or supervisees, your income level, and whether an S-corp election makes sense on top of the entity structure. We model the decision before recommending it.
How do you handle the cash-pay vs insurance reimbursement revenue mix?
Insurance EOBs, write-offs, and reimbursement timing make a private practice's books materially different from a typical service business. We reconcile insurance deposits to claims, track contractual adjustments separately from bad debt, and produce a P&L that reflects what you actually earned rather than what you billed.
Are my supervisees or therapists 1099 contractors or W-2 employees?
This is one of the highest-risk classification questions in private practice — and the IRS has been increasingly aggressive on misclassification. Whether a clinician working under your license is a contractor or employee depends on supervision level, scheduling control, and economic dependence. Misclassification creates back payroll tax liability plus penalties. We evaluate each arrangement, document the methodology, and structure it correctly.
What retirement plan should a private-practice owner use?
For solo practitioners without employees, a Solo 401(k) shelters up to $72,000 in 2026 ($83,250 if age 60–63). For practices with W-2 employees, a Safe Harbor 401(k), SIMPLE IRA, or cash balance plan may be a better fit depending on owner age, employee demographics, and tax-deferral goals. Because Cleared's founder is a CFP®, retirement plan design is part of the planning engagement — not punted to a separate advisor.
Can you handle malpractice insurance, CE, licensing, and other practice-specific deductions?
Yes. Malpractice insurance, board licensure renewals, continuing education, professional association dues, EHR software, supervision fees, telehealth platform costs, and HIPAA-compliant infrastructure all have specific tax treatment. We categorize them correctly inside your books — not at year-end during a tax-prep scramble.
Ready for accounting that fits your practice?
Apply for a spot and we'll reach out within one business day.