Specialised accountants for psychologists
Being a psychologist in 2021 is undoubtedly a challenging profession. The impact of the global pandemic has changed the way our day to day lives function, and the demand for mental health services has dramatically increased.
But even before COVID, the industry felt increasing pressure… with Australia’s ageing population and complex social fabric, the demand for psychologists and other mental health professionals was already high.
Providing care for your clients is always the primary focus, but it’s important that a psychologist also manages the financial aspect of their services.
Here at North Advisory, we are specialised accountants for psychologists. We understand your unique financial requirements and have years of experience working with health professionals.
Today we look at some of the financial pain points you might experience as a professional psychologist and offer some practical solutions.
“A specialised accountant helps psychologists balance clinical excellence with strong financial health.”
Starting your own practice
Starting your own practice is an exciting time, but there are many crucial decisions to make through the process. Each can have a significant impact on your finances, and we recommend seeking professional accounting advice to make sure you understand all implications.
Some of the most important decisions you will make include:
- Which business structure should you use?
- Should you rent or buy your business property?
- What’s the most effective way to fund your fit out, including any specialist equipment?
- Should you consider buying into an established practice?
- What systems can you employ to manage bookings and your accounting?
An accountant will be able to assess the financial viability of your options and give you objective recommendations based on your current financial situation.
Employing staff
If your practice is growing, you might find that you become buried in administration. If you find yourself stretched between helping your clients and all the necessary business tasks, you might consider employing support staff.
When you are at this stage, there are again many aspects you need to consider. It’s not just your prospective employee’s salary that you should be thinking about.
Do you require someone on a full-time basis, or could you employ them part-time or even casually? Every type of employment has specific entitlements, so this could impact your decision. You will also need to be across payroll processing, including tax, superannuation, insurances and any other legal requirements relating to employment.
There could also be additional costs involved in the recruitment process as well as the time it takes to train your new team member. Plus, don’t forget about the equipment they will be working on… you might need to provide them with a computer or phone in order to perform their role effectively.
Managing cash flow
As with any business, your psychology practice will have a range of different ongoing costs.
Once you’ve completed the initial fit out with furniture, equipment and relevant supplies, your operating expenses tend to become more regular. They can include rent and outgoings, utilities such as electricity and of course your salary and that of any employees.
Having regular expenses means that you need to manage your cash flow effectively. Poor cash flow arises when you don’t have enough funds available to cover your expenses.
A lack of financial planning can have negative implications, so this is where you can turn to your accountant for their expertise.
They can help you understand your cash flow statement so that you can see where your practice is spending money. Regularly reviewing your expenses allows you to identify your weaknesses and find where you can cut costs as well as track your payments to suppliers.
“Understanding the financial side of your practice allows you to focus on client care with confidence.”
Tax minimisation and asset protection
To achieve the best financial outcome, it’s critical that you utilise tax effective strategies and that you access all the relevant deductions. But it is also essential that you protect your assets from litigation.
Your accountant can help you protect your wealth by making sure you have the best business structure in place, whether it’s a company, partnership or family trust.
Seek professional advice
Here at North Advisory, we understand your time is extremely valuable. You have clients to care for and you want to know that your accountant can provide the exact services you need.
We pride ourselves on our ongoing close working relationships with all our clients, our fast turnaround times and proactive approach.
If you’re looking to work with a team of accountants who have a proven track record in business accounting for psychologists, we’d love to help. Contact us today.
About the author
Cayle Petritsch - Director & Wealth Advisor
Cayle Petritsch, Director and Wealth Advisor, works with our existing clients who have recognised the importance of business owners making strategic financial choices not only for their company, but for their personal finances too.
Cayle saw a great opportunity to expand North Advisory’s services into SMSF/superannuation, personal wealth management, asset protection services and other crucial personal finance facets that business owners need to consider.
His approach to wealth management allows you to receive highly personalised wealth advice. Working closely with Marius, Cayle understands the unique needs of every client, from their lifestyle and business goals to their retirement plans.
Key Takeaways
Financial Expertise Supports Clinical Practice
A specialised accountant helps psychologists manage the business side of their practice, supporting sustainability and growth.
Structure Influences Tax and Risk
Choosing the right business structure affects your tax position, liability and long-term planning.
Tax Planning Improves Cash Flow
Proactive tax planning ensures you keep more of what you earn and avoid surprises at tax time.
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Frequently Asked Questions
Why do psychologists need an accountant?
Psychologists often operate private practices with unique financial needs like mixed income streams, compliance requirements, GST considerations and tax planning — all of which benefit from specialist accounting support.
What can an accountant do for a psychology practice?
An accountant can assist with tax planning, income structuring, superannuation advice, financial reporting, cash flow management and practice growth strategies.
How does an accountant help with tax obligations?
They ensure your tax returns are accurate, identify deductible expenses, maximise concessions where eligible and help you plan for tax liabilities throughout the year.
Do psychologists need help with practice setup?
Yes. An accountant can guide you in choosing the right business structure (e.g., sole trader, company, trust), assist with registrations, and set up compliant accounting systems.
When should a psychologist engage an accountant?
Ideally, early — especially when starting a practice, hiring staff, investing in equipment, planning tax strategy or preparing for growth or retirement.
Should I buy into an existing psychology practice or start my own from scratch?
Both can work — but the financial outcomes can be very different. It’s important to assess the viability of each option and get objective advice before committing.
North Advisory’s Reviews 
On 
Flo Mitchell
4 weeks ago
Changed to this company in 2019 from former accountant and love their approach of organizing everything for me face to face with Xero set up plus being able to call as much as I need for set annual fee. They also picked up on something that was not done correctly by my former accountant and saved me $4k for this.
Timothy Cummins
A month ago
They the truly the best, Martin and Judy are so experienced, knowledgeable & professonal, also quite like speaking with Rose : ) all people are so lovely!
Michael Iera
2 months ago
Positive, Responsiveness, Quality, Professionalism, Value
Michael Iera
2 months ago
Excellent company in regards to service and professionalism. Very experienced in dealing with complex matters. Highly recommended.
Reach out we are here to help
Recognising the uniqueness of each business, we specialise in customised accounting services crafted to meet your specific needs and drive business growth.
Don’t hesitate to contact us if you’re ready to streamline your financial management with tailored solutions. Your business’s success is our primary focus. Fill in the contact form or call us to book an initial 30-minute chat.
Suite 6, 11 Oaks Avenue
Dee Why, Northern Beaches
NSW 2099
Australia