Financial Planning for
Mental Health Professionals

Bridging the gap between accounting and CFO services, this dedicated planning service offers a holistic view and strategic roadmap for achieving the outcomes you want both personally and professionally.

As a mental health provider, whether you run a solo practice or manage a group practice, the focus is often on providing quality care for your clients and patients. We love that and feel the same about our clients! However, to sustain and grow your practice effectively, robust financial and business planning is a must. Unfortunately, planning for unpredictable cash flow, managing billing and expenses, understanding benefit options for owners and employees, and planning for the future are daunting without help. Add in the need to also plan for your personal financial life, and things can get hectic quickly!

This is why we created a financial and business planning service designed specifically for mental health practice owners. Our planning process can help improve the financial health of your practice, and can also support your personal financial well-being for the present and future.

Not all providers are able to or even want to bring on an employee or contractors to manage the many aspects of their practice's financial health. At EViE, we help you bridge the gap between traditional bookkeeping or accountant services and higher-level CFO services, so you can more effectively balance the time you spend providing care. We provide actionable, realistic, reasonable strategies for understanding your current financial picture, the goals you want to work toward in your personal and business life, and how to get there effectively. We break down the helpful but often overwhelming financial details of your business and personal life so you know what you’re doing, why you’re doing it, and the how behind it all. We also help you integrate the two in an efficient and streamlined way.

No matter your practice's focus, size, or revenue, the process for developing an EViE plan is the same. We walk you through the following steps to help you reach your financial destination.

Financial planning for mental health providers involves a comprehensive approach that looks at both personal and business finances from several different aspects. Here’s an overview of the essential steps:

1. Assess Your Current Financial Situation - EViE’s state of the union: This involves reviewing current income, expenses, debts, and assets. For solo practice owners, this might mean evaluating personal and business accounts together, while group practice owners need to consider the financial status of the entire practice. Without knowing where we’re starting, we can’t know how to get to where we’re going!

2. Discuss and Set Financial Goals: Define both short-term and long-term financial goals. These could range from increasing revenue, expanding services, or saving for personal milestones like retirement. We’re here for it all.

3. We Get to Work: Plan design and review with planner and practice owner. Once we’ve gathered the details and talked through where you are and where you want to be, our planners will start putting together the initial plan, analysis, and recommendations for implementation. We’ll talk through each topic with you in detail to ensure you’re feeling educated and empowered to make some money moves!

What is Financial Planning for mental health practice owners, and why is it important?

The Financial Planning Process

A financial plan can mean a lot of different things, depending on your perspective. At EViE, we cover all relevant financial aspects of your practice and your personal financial life. These include the following hot topic areas at a minimum:

What’s Included in a
Financial Plan for Mental Health Practice Owners?

Budgeting: creating ranges for spending and a plan for monitoring and adjusting as needed
Cash flow management: monitoring cash flow to ensure expenses are covered consistently, with room to run when needed
Debt strategy: designing a plan for debt reduction or leveraging for practice expansion or major purchases personally
Investment and savings planning: review of current savings goals, contributions, accounts, desired outcome of funds to ensure effective investment
Retirement readiness: review of retirement projections, including tax planning, distribution strategies, and company-provided benefits
Risk management: review of current personal and professional insurance coverage
Tax planning: evaluation of income sources to determine best paths for tax optimization
Estate and legacy planning: review of estate strategies for maintaining control over asset distribution for the future

In addition to the basics, our planning service for mental health practice owners includes an in-depth review of the following:

Tax efficiencies in business structure and owner income/distributions
Benefits review for owner, partners, and employees/contractors
Pricing structure evaluation
Evaluation and roadmap to group practice
Account framework and use review (both personal and professional)
Ongoing wealth coaching
Accountability check-ins and review meetings quarterly

For mental health providers, personal and business finances are often intertwined. Here’s how they blend together and why our planning service covers both aspects of your financial life:

Income Stream: The revenue generated from the practice is often the primary source of personal income. Therefore, the financial health of the business directly impacts personal financial stability.
Expense Management: Many personal expenses might be tied to business activities, such as travel for conferences or continuing education. A clear separation here is a must.
Savings and Investments: Profits from the practice can be reinvested into the business or allocated to personal savings and investment accounts, ensuring financial security and growth.
Debt Management: Balancing business loans and personal debts requires a coordinated approach to ensure neither side is neglected.

For mental health providers, effective financial and business planning is not just about maintaining the practice but about thriving in a competitive landscape. By integrating personal and business financial planning and bridging the gap between basic accounting and advanced CFO services, practitioners can achieve greater financial clarity and success with our Financial Planning process. This holistic approach enables mental health providers to focus more on their core mission of helping clients and patients, secure in the knowledge that their financial future is well managed.