When to bring in a bookkeeper before you open

Bring in a bookkeeper once money starts going out for the practice, early enough to set up accounts, categories and a paper trail, and let monthly reporting wait until members are paying.

Why before you open

Setting up books right on day one is cheap. Fixing a year of mixed-up spending later isn't. The decisions you make before opening, like which account pays for what and how membership payouts land, shape every number you'll look at for years.

You also spend a lot before you earn anything. Build-out, equipment, licensing, software. That money needs a record so your CPA can handle it properly later.

What to set up before your first member

• A business checking account used only for the practice
• A business credit card, so personal and practice spending don't mix
• A chart of accounts built for DPC, which is the list of categories every dollar gets sorted into
• A log of every dollar you spend before opening, with receipts
• A plan for how membership payouts land in your bank
• A conversation with your CPA about your business entity and how you'll pay yourself

That last one is your CPA's call, and an attorney's for the entity. I'd have the conversation before you open, not after your first year.

Know how your money will land

Your membership platform shapes what your deposits look like. If you use Hint, deposits arrive net of fees, refunds and failed payments. That means the deposit in your bank won't match what you billed. Your books should show the full membership amount and the fees separately, or your revenue looks smaller than it is. Here's more on why your Hint report doesn't match your bank.

Whatever platform you pick, ask how payouts work before you sign. It's much easier to set up the books around it from the start than to rework them later.

What can wait

You don't need a full monthly package before you have revenue. Performance reviews, revenue per member and panel trend don't mean much with five members. Cash flow forecasting can wait too, unless you're borrowing money or deciding how much cash you need on hand to open.

Payroll can wait until you hire. If a hire is in the plan, set payroll up a few weeks early so the first payday goes smoothly.

This is why we offer pre-launch advice starting at $99 a month. It's for owners who need answers on setup before there's monthly bookkeeping to do. You can see all three levels and pre-launch on our pricing page.

What I'd do this week

If you're within six months of opening, here's what I'd do. Open the business account and card now if you haven't. Start a spreadsheet of every pre-opening expense, with the date, vendor, amount, what it was for and which account paid. Then book a call with your CPA to talk through your entity and owner pay.

Those three steps head off a lot of cleanup later. None of them take long. All of them get harder the longer you put them off, because receipts get lost and charges blur together.

And if you've already been spending from a personal card, that's fine. Pull those statements, mark the practice charges, and add them to the log. It's your call when to bring in help, but start the log today.

Common questions

How early is too early to hire a bookkeeper?
If you haven't formed the business or spent anything yet, there's not much to keep books on. Once money starts going out for the practice, it's a good time.

Can I do my own books until I open?
You can. Keep a separate account, save every receipt and log every expense. A clean log makes setup faster when you hand it over.

Do I need payroll set up before opening?
Only if someone's getting paid before you open. Otherwise set it up a few weeks before the first payday.