Bookkeeping for Massage therapists

As a massage therapist, your focus is on helping clients feel their best—but what about the health of your business finances? Proper bookkeeping is essential for staying organized, avoiding tax headaches, and making sure your business remains profitable. In this guide, we’ll break down why bookkeeping matters, common mistakes to avoid, and simple strategies to keep your finances in top shape

why bookkeeping matters

Whether you run your own clinic, rent a space, or offer mobile massage services, keeping track of your income and expenses is crucial. Bookkeeping helps you:

- Stay compliant with taxes (GST and payroll)
- Track business profitability and make smarter financial decisions
- Identify deductible expenses to reduce your tax bill
- Avoid cash flow surprises

Without a solid system in place, it’s easy to lose receipts, underreport income, or miss important filing deadlines—leading to unnecessary stress (and potential penalties).

Common bookkeeping mistakes

Even the most organized massage therapists can make bookkeeping mistakes. Here are some of the biggest pitfalls:

1. Mixing Personal & Business Finances

If you’re using the same bank account for personal and business expenses, stop now! A dedicated business account makes it easier to track transactions, claim deductions, and stay audit-ready.

2. Not Tracking Expenses Properly

Massage therapists have many deductible expenses, including:

- Massage tables & linens
- Oils, lotions, and essential oils
- Rent & utilities for your clinic space
- Scheduling software (e.g., Jane App, Acuity)
- Travel expenses for mobile appointments

Keeping digital copies of receipts and categorizing expenses regularly prevents scrambling at tax time.

3. Forgetting to Set Aside Taxes

If you’re self-employed, you need to plan for taxes throughout the year. Set aside a percentage of your income (typically 20-30%) for income tax and, if applicable, GST remittances.

4. Not Registering for GST When Required

Massage therapy is generally subject to GST in Canada. Once your revenue reaches $30,000 in a 12-month period, you must register for GST and start collecting it from clients. If you’re unsure whether you need to register, consult a bookkeeper or accountant.

5. Relying on Last-Minute Bookkeeping

This one is a doozy and should be avoided at all costs. If you ONLY do your books at tax time, you are missing out a lot of data that you could have used to make strategic decisions with. Instead, set aside 15 minutes per week to log transactions, reconcile bank accounts, and review your numbers.

How to Stay on Top of your Bookkeeping

1. Use software (QBO/Xero)

2. Schedule monthly check-ins to keep yourself on top of your finances

3. Systematize as much as you can

4. Call in a professional if you are overwhelmed

Last thoughts: Keep Your Finances as Relaxed as Your Clients

Taking care of your bookkeeping doesn’t have to be stressful. By using the right systems, tracking expenses properly, and planning for taxes, you’ll set your business up for long-term success.

💡 Need help getting your bookkeeping in order? Contact NG Finances today for expert support tailored to massage therapists!