Psychologists, Psychotherapists & Mental Health Professionals – Tax Accountant
Solo practices, group clinics, and online therapy – OHIP/private billing, supervision income, and incorporation planning handled for you.
1000+
Satisfied Clients & Partners
AFFORDABLE Accountant for Mental Health Practice
At Gondaliya CPA, we understand the unique financial realities of private practices from session-based income and insurance reimbursements to professional dues and continuing education costs. Our accounting and tax services are tailored to help mental health professionals stay compliant, organized, and financially stress-free throughout the year.
We support solo practitioners, group practices, and incorporated professionals with cost-effective bookkeeping, tax planning, and CRA-compliant filings. Whether you operate in Ontario or serve clients virtually across provinces, our affordable accounting solutions help you maximize deductions, manage cash flow, and focus more on patient care—not paperwork.
Official Partner
Accounting That Understands Mental Health Practices
Mental health professionals balance client care, confidential documentation, and ethical obligations often leaving little time for bookkeeping or proactive tax planning. Our accounting services are designed to support your practice financially, so you can stay compliant and focused on helping your clients.
Multiple Income Streams
Client fees, supervision, reports, training, consulting.
OHIP vs Private Billing
Different payers, different reporting and timing.
Solo vs Group Practice
Rent splits, associate arrangements, admin fees.
In‑Person & Online Sessions
Cross‑provincial and virtual service considerations.
Mental Health Tax Rules You Need to Know
HST and Health Services
Most regulated mental health services are HST-exempt, but income from consulting, workshops, supervision, or non-clinical services may be taxable. We help correctly split and report these revenues to prevent CRA reassessments and penalties.
Business Structure: Sole Proprietor vs Professional Corporation
Choosing the right structure depends on your income level, practice stability, and long-term goals. We guide you on when incorporation makes sense and how salary vs. dividends impact CPP, RRSP room, and total tax.
Deductible Practice Expenses
Eligible deductions may include office rent, virtual platforms, EMR software, insurance, supervision fees, CPD, and home-office costs where applicable. Proper categorization and separation of expenses reduces audit risk and improves tax efficiency.
Why Choose Our Accounting Services?
Industry-Focused Expertise
Specialized tax and accounting knowledge tailored to your profession and business model.
Year-Round Tax Planning
Proactive strategies that reduce taxes, avoid surprises, and keep you CRA-ready.
Compliance Without Stress
Accurate filings, clean records, and audit-ready documentation you can trust.
Affordable, Personal Support
Fully Licensed CPA Ontario
500+ ★★★★★ Google Reviews
30-Day Money-Back Guarantee
60-Day Fees-Matching Policy
Tax & Accounting Services for Mental Health Professionals
Free Resource: 50 Deductible Expenses for Mental Health Professionals
Comprehensive checklist of tax-deductible costs unique to Mental Health Professionals. PDF delivered instantly.
Case Studies
Solo Psychologist – Considering Incorporation
Problem: Growing income, no clear guidance on when to incorporate or how to pay themselves.
Solution: Assessed income stability, incorporated professional corporation, designed salary/dividend mix and instalment plan.
Results:
✅ Reduced overall tax rate
✅ Predictable personal tax with no year‑end surprises
✅ Clear separation between personal and practice finances
Group Practice Owner – Associate Arrangements
Problem: Confusing rent and revenue‑share arrangements with associates, messy bookkeeping.
Solution: Introduced clear templates for rent splits and admin fees, restructured bookkeeping to track each revenue stream.
Results:
✅ Clean financials for the clinic
✅ Easier reporting to associates
✅ Better insight into which services are most profitable
Online Therapist – Multiple Platforms
Problem: Income from several platforms, speaking engagements, and courses; hard to track and categorize.
Solution: Consolidated data from platforms, built simple chart of accounts for clinical vs non‑clinical income and related expenses.
Results:
✅ All income properly reported
✅ Maximized deductions on legitimate costs
✅ Peace of mind around cross‑platform reporting
Our clear, efficient process ensures that every step is transparent, fostering trust and strong client relationships.
Here’s a simplified process approach:
- Consultation to understand your practice
- Develop Strategic Goals
- Tailor Financial Solutions
- Implement & Monitor
- Provide Ongoing Support
- Ensure Compliance and Risk
Step 1
Practice & Income Review
Understand your practice model (solo, group, online), payers, and income streams.
Step 2
Systems and Setup
Connect bookkeeping tools, set up categories for services and expenses, and establish a simple process for you to follow.
Step 3
Ongoing Support & Tax Filings
We roll out your accounting processes and deliver easy-to-interpret financial insights on a regular cadence.
Step 4
Planning & Growth
Annual strategy meeting to review income trends, incorporation, retirement planning contributions, and next‑year tax estimates.
Get Your Practice Tax-Ready Today
We believe in clear, upfront pricing so you know exactly what to expect.
Tax Preparation (Corporation): From $400
Tax Return Filing (Corporation): From $400
Tax Compliance Audit – FREE CRA audit support for our clients
Tax Strategy: FREE for our clients
- Accounting Base Plan – From $100 / month
Bookkeeping Management (Free for our Accounting clients)
Financial Reporting (Free for our Accounting clients)
- Business Formation: Flat $35
- Incorporation Process: Flat $35
- Entity Setup Assistance: Flat $35
- Full-Service Payroll: From $125 per month
Meet our Dedicated Mental Health Practice Accountants
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See all on GoogleServing Mental Health Professionals Across Ontario
We provide expert accounting and tax services to mental health professionals and practices across Toronto and the Greater Toronto Area (GTA), including Mississauga, Brampton, North York, Etobicoke, Scarborough, Vaughan, Markham, Richmond Hill, and Ottawa, helping them increase profits and maintain full compliance. Our team has extensive experience with the financial and tax requirements that affect mental health professionals across Ontario.
Toronto (ON)
168 Simcoe St Unit 1118, Toronto, ON M5H 4C9, Canada
+1 (647) 212-9559
9:00 AM – 8:30 PM (Mon – Sun)
Mississauga (ON)
5373 Bullrush Dr, Mississauga, ON, Canada
+1 (647) 212-9559
9:00 AM – 8:30 PM (Mon – Sun)
Brampton (ON)
4 Starhill Crescent, Brampton, ON L6R 2P9, Canada
+1 (647) 212-9559
9:00 AM – 8:30 PM (Mon – Sun)
Scarborough (ON)
24 Clementine Square, Scarborough, ON M1G 2V7, Canada
+1 (647) 212-9559
9:00 AM – 8:30 PM (Mon – Sun)
Vaughan (ON)
19 Cabinet Crescent, Woodbridge, ON L4L 6H9, Canada
+1 (647) 212-9559
9:00 AM – 8:30 PM (Mon – Sun)
Oshawa (ON)
210 Durham St, Oshawa, ON L1J 5R3, Canada
+1 (647) 212-9559
9:00 AM – 8:30 PM (Mon – Sun)
Ottawa (ON)
2090 Neepawa Ave a314, Ottawa, ON K2A 3L6, Canada
+1 (647) 212-9559
9:00 AM – 8:30 PM (Mon – Sun)
Etobicoke (ON)
60 Stevenson Rd #1601, Etobicoke, ON M9V 2B4, Canada
+1 (647) 212-9559
9:00 AM – 8:30 PM (Mon – Sun)
Hamilton (ON)
70 Starling Dr, Hamilton, ON L9A 0C5, Canada
+1 (647) 212-9559
9:00 AM – 8:30 PM (Mon – Sun)
Guelph (ON)
1155 Gordon St, Guelph, ON N1L 1S8, Canada
+1 (647) 212-9559
9:00 AM – 8:30 PM (Mon – Sun)
Windsor (ON)
4387 Guppy Ct, Windsor, ON N9G 2N8, Canada
+1 (647) 212-9559
9:00 AM – 8:30 PM (Mon – Sun)
North York (ON)
150 Graydon Hall Dr #912, North York, ON M3A 3B2, Canada
+1 (647) 212-9559
9:00 AM – 8:30 PM (Mon – Sun)
Mental Health Tax FAQs
Should I incorporate my psychology or psychotherapy practice?
Incorporation can make sense once your income is stable and consistently above your personal spending needs. A professional corporation may allow tax deferral, income smoothing, and better long-term planning. However, incorporation also adds costs, compliance, and separate tax filings. It’s not right for everyone. A CPA who understands mental health practices can review your income, goals, and regulatory rules to help you decide when (or if) incorporation is the right step.
Do I need to charge HST on my therapy services?
Incorporation can make sense once your income is stable and consistently above your personal spending needs. A professional corporation may allow tax deferral, income smoothing, and better long-term planning. However, incorporation also adds costs, compliance, and separate tax filings. It’s not right for everyone. A CPA who understands mental health practices can review your income, goals, and regulatory rules to help you decide when (or if) incorporation is the right step.
How should I pay myself vs. associates?
Most regulated psychotherapy, psychology, and counselling services are HST-exempt in Ontario when provided as clinical care. However, non-clinical services—such as consulting, supervision, workshops, assessments for third parties, or corporate training—may be taxable. Charging HST incorrectly (or not charging when required) can lead to CRA assessments and penalties. Proper classification and invoicing are essential to stay compliant while avoiding unnecessary tax collection.
What expenses can I deduct as a therapist or psychologist?
You can generally deduct expenses that are reasonable and directly related to earning your professional income. Common deductions include office rent, virtual therapy platforms, EMR software, professional insurance, supervision fees, continuing education, marketing, and office supplies. Home-office expenses may also be deductible if used regularly for your practice. Clear documentation and proper categorization are key to maximizing deductions while minimizing CRA audit risk.
How do I handle income from supervision, consulting, or speaking engagements?
Income from supervision, consulting, training, or speaking is often treated differently than clinical therapy income. Some of these services may be taxable for HST purposes and may need separate tracking in your bookkeeping. Mixing all income together without proper classification can cause reporting errors and tax issues. A CPA can help you separate revenue streams correctly, apply the right tax treatment, and ensure accurate reporting to the CRA.
Can I deduct home-office costs if I also rent a clinic space?
Yes, in some cases you can deduct home-office expenses even if you rent clinic space, as long as the home workspace is used regularly and specifically for your practice (such as documentation, virtual sessions, or admin work). The deduction must be reasonable and prorated based on space and usage. Clear records and proper calculations are important to avoid issues during a CRA review.
Do I need a separate business bank account as a mental health professional?
While sole proprietors are not legally required to have a separate business bank account, it is strongly recommended. Mixing personal and professional transactions makes bookkeeping harder, increases audit risk, and can weaken expense claims. A separate account improves clarity, accuracy, and professionalism. If you’re incorporated, a separate corporate bank account is mandatory and critical for compliance.
How should I pay myself if I’m incorporated?
If you operate through a professional corporation, you can generally pay yourself through salary, dividends, or a combination of both. Each option affects taxes, CPP contributions, RRSP room, and cash flow differently. There is no one-size-fits-all answer. Strategic planning with a CPA helps balance personal income needs, tax efficiency, and long-term retirement planning while staying compliant with CRA rules.
What records does the CRA expect mental health professionals to keep?
The CRA expects clear records of income, expenses, invoices, receipts, bank statements, and supporting documentation for at least six years. Even though client confidentiality is critical, financial records must still be complete and audit-ready. Poor record-keeping is one of the most common reasons for reassessments. Proper bookkeeping systems help you stay compliant without compromising professional ethics or privacy.
What happens if I fall behind on taxes or bookkeeping?
Falling behind is more common than many professionals realize, especially with busy client schedules. The good news is that issues can usually be fixed. A CPA can help clean up past bookkeeping, file missing returns, address HST or income tax balances, and communicate with the CRA if needed. Early action reduces penalties, interest, and stress—and puts you back in control.
How do I get started with your tax accounting services?
The first step is a consultation with our corporate accountant. Contact Gondaliya CPA today to discuss your practice’s accounting needs and receive tailored solutions for Toronto, Mississauga, Brampton, Scarborough or anywhere in Ontario.
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