As a wellness practitioner, whether you're a massage therapist, yoga instructor, acupuncturist, or coach, keeping your financial house in order is just as important as caring for your clients. One of the first decisions you’ll make in setting up your bookkeeping is choosing between single-entry and double-entry systems. Each method has its pros and cons—and choosing the right one depends on your business's complexity, size, and growth goals.

What is Single-Entry Bookkeeping?

Think of single-entry bookkeeping like a personal checkbook. It records transactions only once, either as income or an expense. This method is typically used by very small businesses or sole proprietors who don't carry inventory, have few assets, and have straightforward income and expenses. Software for single-entry bookkeeping includes Excel and Quicken.

Example:

Let’s say you’re a solo yoga instructor who accepts Venmo payments from clients and pays rent for a small studio space. A single-entry system might look like:

This approach is simple and low-cost—but it doesn’t track assets, liabilities, or equity. It also doesn't help much when it comes time to analyze the financial health of your practice.

What is Double-Entry Bookkeeping?

Double-entry bookkeeping is more robust. Every transaction is recorded in at least two accounts—a debit in one and a credit in another. This method helps you track not just income and expenses, but also assets (like equipment), liabilities (like loans), and equity (your investment in the business). Accounting software like QuickBooks and Xero utilizes double-entry bookkeeping.

Example:

Let’s say you’re an herbalist and health coach. A client pays you $500 for a wellness package. In double-entry bookkeeping, you would:

• Debit: Cash (an asset account) by $500

• Credit: Service Revenue (an income account) by $500

If you purchase a $200 essential oil inventory order:

• Debit: Inventory (an asset account) by $200

• Credit: Cash (an asset account) by $200

This method ensures your books always balance and provides more detailed insights into your business performance. Knowing how to use debit and credit correctly can be confusing to business owners maintaining their books.

When to Use Which Method

What Wellness Practitioners Should Consider

If you’re just starting out and doing everything yourself, single-entry might suffice in the beginning. But as soon as you start offering multiple services, selling products, hiring contractors, or applying for business credit, it’s time to upgrade to double-entry.

For example:

• A nutritionist who sells supplements and tracks inventory will need double-entry to accurately track cost of goods sold.

• A massage therapist hiring a virtual assistant and paying taxes will benefit from the deeper insight and compliance double-entry provides.

• A life coach planning to scale with group programs and retreat packages should track revenue and expenses in more detail.
  

Final Thoughts

Choosing the right bookkeeping method is a foundational decision. Single-entry is like keeping a diary—simple and personal, but it doesn’t yield much useful information for tax reporting or making financial business decisions. Double-entry is like running a well-oiled machine—detailed, balanced, and growth-ready.

If you're not sure what’s right for your practice, consider consulting a bookkeeper familiar with wellness businesses (like me!) to help you build a system that supports your success.