Accounting for psychotherapists in Ontario
Private psychotherapy practices manage client billing, sometimes multiple associates, and sales-tax treatment that has shifted in recent years, so current books and good advice matter.
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taxifi · Psychotherapists
This month
- Bookkeeping Current
- Payroll & source deductions Filed
- HST Filed
- Year-end tax (T2) On track
The problems we take off your plate
Solo or group, tracked cleanly
Whether it's just you or a group with associates, revenue and associate pay are tracked clearly each month.
Sales tax on your services
Your accountant reviews how sales tax applies to your specific services so you're registered and filing correctly.
Client billing that reconciles
Session billing is reconciled so your books reflect what you actually earned.
What’s included
Published prices for incorporated Ontario psychotherapists. Everything below is handled.
- Bookkeeping for a solo or group practice
- Associate payments and payroll tracked
- HST handling reviewed with your accountant
- Year-end corporate tax (T2), from $1,000 a year
- Owner compensation planning
| Area | A typical setup | With taxifi |
|---|---|---|
| Your books | Weeks or months behind | Current every day |
| Year-end (T2) | A spring scramble, billed extra | Included, no surprise invoice |
| Your accountant | Metered by the hour | Unlimited questions, flat monthly |
The exemption that changed, and what it means for your books
Psychotherapy and counselling therapy services became exempt from GST/HST under federal changes effective in 2024, which was a significant shift for practices that had been charging tax. Exempt status means no HST on therapy fees — and generally no input tax credits on practice costs, so the HST inside rent, software, supervision, and equipment becomes a permanent expense.
Practices that transitioned through the change should make sure their books, invoicing, and registration status all reflect the current treatment consistently, because a half-transitioned setup produces returns that disagree with invoices. If a practice also earns non-exempt revenue — corporate training, workshops, supervision, or coaching — mixed-supply questions can apply. Worth one review, then straightforward from there.
Common questions
Do you handle group practices with associates?
Yes. Associate arrangements are tracked cleanly each month.
Can my accountant advise on sales tax for my services?
Yes. Your accountant reviews how sales tax applies to your specific services so you're set up correctly.
Is psychotherapy HST-exempt in Canada?
Psychotherapy and counselling therapy services became GST/HST exempt under federal changes effective in 2024. Exempt status also generally removes input tax credits, so HST on practice overhead becomes a real cost. Practices that were previously registered should confirm their current registration and filing position with an accountant.
What if I also run workshops or corporate training?
That revenue may not be exempt, which can make the practice a mixed supplier with registration and apportionment implications. The answer depends on what is actually being supplied and to whom — a review worth doing once rather than assuming the whole practice is exempt.
Books and taxes for your psychotherapy practice, done
Bookkeeping from $99 a month, accountant-reviewed from $299, corporate T2 from $1,000 a year. Prices are published; a call confirms the fit.
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