Mental & behavioral health

Books and taxes for psychological testing and assessment practices.

A flat fee for a full psychoeducational battery, a Pearson scoring license renewal, a school district's purchase order paid on net-30 terms, and hours of report writing nobody bills by the minute. Gus sorts all of it, an accountant checks every transaction, and you get one number a month.

Book a call What we handle
  • From $197 a month
  • An accountant on every transaction
  • Cancel whenever
AprilExample month
$18,300
what you made

April came in at $18,300. Two school district evaluations paid on their usual net-30 terms, so the deposit landed a full month after you did the testing.

  • Private client, testing batteryPrivate pay evaluations
  • School district, net-30School and agency contracts
  • Pearson scoring license renewalTest materials and licenses
  • Insurance batch, initial evalInsurance evaluations
  • Report transcription serviceReport support services
Money in$26,400
Money out$8,100
Set aside for taxes$4,900
An example month. Yours will have your numbers.

Why your books are different

A testing practice's books go wrong around flat fees and unbilled hours.

A generalist sees a deposit and a software bill. Your practice sells a flat-fee package that covers testing, scoring, and hours of report writing, buys test protocols and scoring licenses that are real recurring costs, and often bills school districts on net-30 terms. When the books flatten all of that, the true cost of a battery disappears.

  1. 1

    Flat testing fees hide how much of the work is report writing

    A single flat fee for a psychoeducational or forensic battery covers testing sessions, scoring, and often ten or more hours of report writing, and without separating what the fee actually pays for, it is hard to price the next battery correctly.

    What we doBooks the full package fee as revenue and keeps a note on what type of evaluation it was, so pricing decisions are based on real data over time.
  2. 2

    Test protocols and scoring licenses get mistaken for office supplies

    Testing kits, record forms, and scoring software licenses from publishers like Pearson or PAR are a real, recurring cost specific to this work, and filed as general supplies, they hide what it actually costs to deliver an evaluation.

    What we doKeeps test materials and scoring licenses in their own line so the real cost per battery is visible.
  3. 3

    School and agency contracts pay on terms that lag the work

    A school district or agency evaluation is often invoiced and paid on net-30 or longer terms, so a busy testing month can look thin until the payment finally lands weeks later.

    What we doBooks school and agency payments as income when they land and notes which evaluation they cover, so a payment lag does not read as a slow month.
  4. 4

    Report writing time is invisible in the books

    Hours spent writing a detailed report after testing is done are real, uncompensated-looking time if the practice only tracks the flat fee collected, which can make an evaluation look more profitable per hour than it actually is.

    What we doKeeps testing revenue against any support costs like transcription services, so the true margin on an evaluation stays visible even though report hours themselves are not a line item.

Your categories

The categories Gus keeps for a psychological testing practice.

Set up once for how the practice gets paid and what it spends. Nobody hand-sorts a category. Gus does, and an accountant checks it.

Money in

  • Private pay evaluationsFamilies or individuals paying directly for a testing battery.
  • Insurance evaluationsInsurance-covered initial evaluations, billed apart from private pay.
  • School and agency contractsDistrict or agency evaluations, often paid on net-30 terms.
  • Forensic or legal evaluationsCourt-ordered or attorney-requested assessments, billed at their own rate.

Money out

  • Test materials and licensesTesting kits, record forms, and scoring software licenses from publishers.
  • Report support servicesTranscription or report formatting services, if used.
  • Office rentTesting room and office space.
  • Malpractice insuranceProfessional liability coverage for evaluation work.
  • Continuing educationTesting-specific training and certification courses.
  • Practice softwareScheduling, billing, and report-writing software subscriptions.

What we watch for you

  • Payment lag by referral source

    How long school and agency contracts take to pay against private pay, so cash flow timing is expected, not a surprise.

  • Material cost per battery

    Test kits and scoring licenses against evaluations completed, so pricing reflects the real cost of a battery.

  • Referral source mix

    How much revenue comes from private pay versus school or agency contracts, so exposure to slow payers is visible.

  • The set-aside

    What the practice will owe, tracked every month, so April is a number already known.

Ask Gus

Things testing practice owners ask Gus.

Text him like you would text anybody. He answers in plain English, and when a question is above his pay grade, an accountant looks and gets back to you.

My school district payment for testing I did in March just landed. Does the timing matter?

I book it as April income since that is when it landed, and I noted it covers the March evaluation. That way a slow-paying district does not make March look worse than it was.

My Pearson renewal was expensive this year. Should I raise my testing fees?

I keep material costs in their own line, so you can see what a battery actually costs you against what you charge for it. That is a real pricing question worth a look with the accountant.

I spend way more time writing reports than testing. Is there a way to see if my flat fee still makes sense?

The books can show your margin per evaluation type once materials and support costs are counted, but time spent on report writing itself is not something I track directly. That is worth timing yourself for a month or two.

The tax side

The tax side of a psychological testing practice.

Most of what goes wrong here is timing and labels: net-30 school payments mistaken for a slow month, and testing materials filed as general supplies.

What your return has to get right

Your accountant signs it, so it gets done right the first time.

  • Self-employment taxA psychologist billing under their own name rather than through payroll owes 15.3 percent self-employment tax on top of income tax, up to the Social Security wage base of $184,500.
  • The pass-through deductionYou can often deduct up to 20 percent of your practice's profit before it is taxed, though this can shrink at higher income for a personal-service business like psychological evaluation.
  • Section 179 for testing equipmentLarger purchases such as computerized testing systems can usually be written off in the year bought, up to $2,560,000 under Section 179, separate from routine testing kit restocks.
  • Quarterly estimated taxesWith no payroll withholding on self-employment income, estimated tax is generally due April 15, June 15, September 15, and January 15.

Deductions psychological testing and assessment practices miss

Your bookkeeper knows what to look for in your statements. You never have to.

  • Testing kits and record forms
  • Scoring software licenses
  • Malpractice insurance premium
  • Continuing education courses
  • License renewal fees
  • Office or testing room rent
  • Report transcription services
  • Practice management software
  • Professional association dues
  • Computerized testing systems
  • Business phone and scheduling line
  • Background check fees for staff

General information about 2026 federal rules, not advice for your business. Your accountant looks at your actual numbers before anything gets filed.

All year, not just April

A testing practice's year, kept every month.

School-based evaluations often cluster around the academic year while private and forensic work runs steadier. Gus keeps the practice ahead of both the calendar and the tax deadlines. Every month in between, your bookkeeper closes the books and speaks up the moment something looks off.

  1. January

    Plan the year

    Last year's return gets started, and the monthly set-aside is planned around your mix of private, insurance, and contract work.

  2. April

    Filed. Done.

    Your return is filed and signed. No surprise bill, because the set-aside has been running since January.

  3. July

    Halfway check

    Where you stand, what you will owe, and whether the school-year evaluation season changed the number.

  4. October

    Before year-end

    Gus looks at any equipment or license renewals worth timing before December.

What you get

Starts at$197a month

What you pay depends on what your business needs, and it does not move after that, busy season or slow. No hourly bills, no surprise invoices, no setup fee.

Book a call
  • Monthly bookkeeping

    Every transaction sorted into categories set up for psychological testing and assessment practices. You never categorize a thing.

  • An accountant checks every transaction

    Real review, every month, before your books close. Not a spot check.

  • Your business tax return, filed

    Prepared, reviewed, and signed by that same accountant every year.

  • The monthly number

    What you made, what you spent, what to set aside for taxes.

  • Your own bookkeeper

    A real person assigned to your business, in the app whenever you need them. No hold music.

  • On your books all year

    Every month, not just in April. Your team speaks up whenever something is worth your attention.

  • Cancel any time

    No contract. No cancellation call. Your books are yours.

Straight answers

Questions testing practice owners ask first.

How does Gus handle payment from a school district that takes 30 or 60 days?

The payment is booked as income when it lands in your account, with a note on which evaluation it covers, so a payment lag does not make an earlier month look worse than it was.

Can Gus track how much I spend on test materials each year?

Yes. Testing kits and scoring licenses are kept in their own category so you can see that cost clearly against what evaluations bring in.

Do you track the hours I spend writing reports?

No. Gus works from your bank statements and payments, not your calendar. He can show you revenue and material cost per evaluation, but time tracking is something you would need to do yourself.

Does Gus submit our evaluations to insurance for reimbursement?

No. Gus books whatever insurance pays once it lands. Submitting evaluations for reimbursement and any coding work stays with your billing process.

My testing supplies get restocked a couple times a year in large orders. Will that throw off my books?

No. Gus keeps materials in one steady line and flags a large order as a restock, not a sign the month went badly.

My books have never separated forensic evaluations from clinical ones. Can that be fixed?

Yes. Send over past invoices sorted by evaluation type and Gus will rework earlier months to match, then keep them apart automatically from here.

Is a real accountant checking my books?

Yes. You get your own bookkeeper, Gus does the first pass on every transaction, and an accountant checks every one before your month closes. That same accountant prepares, signs, and files your business return. Goatkeeper is not a CPA firm, and we never pretend a person looked when they did not.

What does it cost, and can I cancel?

It starts at $197 a month, depending on what your business needs. No setup fee, no hourly bills, no contract. Cancel any time from the app, and your books go with you.

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Pick a time. That's the whole signup.

Fifteen minutes with a real person on our team. They look at where your books are, tell you straight what it takes to get caught up, and get you set up on the spot if it fits.

  • $197 a month to start
  • An accountant on every transaction
  • Cancel whenever