If you're running your own private practice, you may have wondered whether you need a designated business bank account in addition to your personal one. The short answer: yes, and it's worth setting up sooner rather than later.
At Heard, we encourage every therapist who runs their own business to maintain a designated bank account for the practice. It takes minimal effort to set up and pays off in clearer books, easier taxes, and stronger separation between your business and personal finances.
The benefits
Tracking your practice's cash flow
This one may seem obvious, but the impact adds up. With a separate account, you won't have to wonder which expenses are personal or business. You'll also get a clearer picture of how much your practice is actually earning. Heard connects to your business account and gives you personalized monthly reports on your financial health.
A clean paper trail for audits
It's rare, but the IRS does sometimes follow up. Keeping your business records separate makes it easy to show clear documentation if it ever comes up.
Easier tax deductions
Many business expenses can be deducted from your income taxes. Tracking them in a designated account makes them easier to categorize accurately, so you don't miss anything you're entitled to.
A designated account can also qualify you for business-specific perks, such as business credit cards or business loans.
How to set one up
If you don't have a business bank account yet, or you're ready to open a new one, Heard Business Banking, powered by i3 Bank, is the simplest way to set it up. It's built for therapists, included in every Heard plan at no extra cost, and your transactions sync to your Heard books automatically. No monthly fees, no minimums, and your Heard Visa Debit Card is included.
If you'd prefer a different bank, Heard supports connections with most major banks through Plaid.