How an Accountant Helps You Scale Your Therapy Practice
Nov 18, 2024As therapists and business owners, growing a practice can feel like piecing together a puzzle. Whether it's about adding clinicians, increasing revenue, or finding new streams of income, scaling your practice requires intention, strategy, and, sometimes, a little help from experts. Recently, I sat down with Julie Herres, owner of Green Oak Accounting and author of Profit First for Therapists, to discuss how therapists can scale their practices effectively. Here's what we uncovered.
What Does Scaling Really Mean?
Scaling isn't just about doing more; it’s about growing strategically. Julie explains, “In therapy practices, scaling often means increasing session count, which usually involves adding clinicians. But it’s all interconnected—you can't add clinicians without thinking about your space, your revenue, and your systems.”
The key takeaway here is to look at your resources holistically. Whether you're running a hybrid model with in-person and online sessions or exploring creative scheduling like morning and afternoon shifts, maximizing your existing assets is crucial. As Julie says, "Scaling doesn’t always mean adding a new location; it’s about making the most of what you have."
Breaking Down Big Goals into Actionable Steps
A common hurdle for therapists looking to scale is feeling overwhelmed by their goals. Julie illustrated this beautifully with an example: “If you want your practice to generate a million dollars a year, you need to break that down. At $125 per session, that’s 8,000 sessions a year or about 666 sessions a month. From there, you can start to build a plan—how many clinicians do you need, and how will you market to fill those sessions?”
By breaking big numbers into smaller, actionable goals, scaling becomes less intimidating and more achievable. Remember, it’s not just about dreaming big—it’s about aligning your actions with those dreams.
Avoiding Costly Mistakes with Expert Guidance
Scaling also involves navigating potential pitfalls. Julie shared a critical example of a therapist considering buying their office building. While the idea of owning the property was exciting, Julie emphasized looking at the math. “You don’t want this dream to turn into your worst nightmare,” she explained. “If it drains your cash reserves and puts your business at risk, it’s not the right move.”
This underscores the importance of having a trusted advisor to help evaluate opportunities. Whether it's an accountant or a consultant, having someone who understands the numbers and can help you plan can save you from expensive mistakes.
Compensation: Building a Sustainable Team
One of the most common challenges therapists face when scaling is creating a compensation structure that works. “Every team member, every session should add to the bottom line,” Julie noted. Generous compensation is great, but it can’t come at the expense of your practice’s sustainability.
For example, Julie shared how some practice owners unknowingly lose money on every session a clinician sees because they didn’t factor in overhead costs. “You’re not helping anyone if your practice isn’t profitable. A sustainable practice ensures you can continue serving your clients and supporting your team.”
Online Courses: A Side Hustle That Supports Your Mission
For therapists looking to diversify their income or reduce reliance on one-on-one sessions, online courses can be a game-changer. “Courses allow you to expand your reach and generate passive income,” Julie shared. Whether it's CEUs for clinicians or content for clients, courses offer a low-barrier way to grow.
But there are considerations: “Should the course be part of your existing business, or does it need to stand alone legally?” Julie recommended consulting both an accountant and an attorney to decide what makes the most sense for your goals.
Final Thoughts: Align Your Growth with Your Mission
Scaling a therapy practice isn’t just about making more money—it’s about aligning your growth with your mission. Whether you’re adding clinicians, optimizing your space, or venturing into online courses, having a clear plan and the right support makes all the difference.
As Jim Collins wrote in Good to Great, “Lead above the death line.” Take risks, but not ones that put your business or mission in jeopardy. With the right tools, team, and mindset, scaling your practice can be not just achievable but deeply rewarding.
Let’s go put your mission in motion.
Links and Resources
- More Resources from Julie and her team: https://www.greenoakaccounting.com/
- Are you ready to scale with a digital product? Take the quiz
- Do you want to talk about scaling your practice with an online product? Contact James here
- Email James with questions: [email protected]
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