5 Bookkeeping Mistakes Massage Therapists Make (and How to Avoid Them)

Bookkeeping isn’t why most of us became massage therapists. But whether you love it, or dread it, staying on top of your massage therapy business finances is essential for running a sustainable practice.

The good news is - it doesn’t have to be complicated.

Like many things in business, it’s often the small habits that make the biggest difference - especially when it comes to money management. I’ve worked with self-employed massage therapists who felt overwhelmed by the bookkeeping side of things, only to discover that a few simple changes helped them feel more organised and in control.

In this article, I’m sharing five common bookkeeping mistakes massage therapists make and how to avoid them. You might recognise a few. You might already be doing some of the right things. Either way, these tips are here to make your life easier and your business stronger.

1. Mixing Business and Personal Finances

The mistake:
Using the same bank account for both personal and business spending.

Why it’s a problem:
When your massage income and personal spending are mixed together, it becomes incredibly difficult to track your massage business finances. Come tax time, you’ll find yourself scrolling through months of bank statements trying to work out which payment was a client, which was a birthday gift, and whether that Boots receipt was for massage oil or toothpaste.

How to avoid it:
The simplest solution is to open a dedicated account and use it only for your massage therapy business expenses. It doesn’t even have to be a formal business account; a separate personal current account is enough.

Before I made this change, I must have spent hours trawling through my statements trying to allocate spending. Now, all my client payments go into one place, and all my expenses come out of it. I can see exactly where I stand at a glance.

It’s such a small change, but it makes a huge difference, and I’m sure you can think of better ways to spend your time.

2. Forgetting to Record Cash Payments

The mistake:
Accepting cash payments but forgetting to log them in your records.

Why it’s a problem:
When things get busy, it’s easy to put off writing things down - especially when it’s a quick cash payment after a session. But those payments add up. If you’re not recording them properly, your accounts won’t reflect your actual massage therapy income, which not only gives you an unclear picture of your business but can also raise questions with HMRC if you’re ever audited.

How to avoid it:
Make a habit of logging every cash payment on the day it’s received. Whether that’s in a simple notebook, a spreadsheet, or an accounting app - what matters is consistency.

It’s easy to think you’ll do it later, but in reality, it’s just as easy to forget. I now record every payment at the end of the day before I close my diary. It takes five minutes, and I know everything’s accounted for.

You’ve worked hard for that money - make sure it shows up in your records. It’s one of the simplest bookkeeping tips for massage therapists that keeps you in control.

3. Not Keeping Receipts

The mistake:
Throwing away or misplacing receipts for your massage business expenses.

Why it’s a problem:
Without a receipt, it’s hard to prove that an expense was genuinely for your massage therapy business and if HMRC ever asks for evidence, “I know I bought it” won’t be enough. Even small expenses can add up over the year, and if you’re not keeping track, you could end up paying more tax than necessary.

How to avoid it:
Get into the habit of keeping every receipt, physical or digital, for anything business related. That means anything you buy to run your practice.

You can keep all your receipts in envelopes marked with the year, but as you get busier or if you prefer to keep things tidier, you might find it easier to scan them and save them on your phone or computer.

I keep a small folder in my clinic space where I can pop physical receipts in as soon as I. get back from the shops. Once a month, I scan them using a free app and upload them to a dedicated folder in Google Drive. For emailed receipts, I forward them straight into the same folder.

Having everything in one place makes bookkeeping (and tax returns) much simpler and far less stressful. A few organised minutes now can save you hours later.

4. Leaving It All Until the End of the Tax Year

The mistake:
Waiting until tax season to sort out your accounts.

Why it’s a problem:
When you leave all your bookkeeping to the last minute, it becomes a stressful, time consuming task that’s easy to dread and much easier to get wrong. You might miss deductible expenses, forget about payments, or find yourself scrambling to track down receipts under pressure. That’s when mistakes happen.

How to avoid it:
Get into the habit of checking in with your massage therapy bookkeeping regularly - monthly is ideal. Set aside a short window of time, maybe half an hour, make a cup of tea, and update your records, check your income, log expenses, and tidy up any loose ends.

I have a reminder in my diary to do this at the beginning of each month, to stay on top of the previous month’s records before it piles up.

Even if you’re not a numbers person, this regular check-in helps you stay in control and spot any issues early. It also means you’re not facing a mountain of admin when January rolls around.

5. Not Understanding What You Can (and Can’t) Claim

The mistake:
Guessing what counts as a deductible expense, or being too cautious and not claiming enough.

Why it’s a problem:
If you’re claiming things you shouldn’t, you risk getting into trouble with HMRC. But if you’re not claiming things you’re entitled to, you could be paying more tax than necessary. Both are avoidable, and both come down to understanding what you’re allowed to include.

How to avoid it:
Take some time to get familiar with the types of expenses self-employed massage therapists are allowed to claim. These might include:

- Massage supplies (oils, waxes, couch roll)
- Uniforms and laundry
- Room hire or clinic rent
- CPD courses and professional memberships
- Insurance
- A portion of home expenses if you work from home
- Mileage and parking if you’re mobile

If you’re ever unsure, speak to an accounting professional, ideally one who works with massage therapists. A bit of guidance can save you a lot in the long run.

Final Thought

Bookkeeping doesn’t have to be daunting, and it certainly doesn’t have to take over your life. With a few simple systems in place and a regular check-in each month, you can avoid last-minute panic and make confident, informed decisions about your massage therapy business.

Because a well-run practice isn’t just good for your tax return, it’s good for your peace of mind, and your long-term success.

About the Author

Esther Smith is a fully booked solo massage therapist with a background in business and a passion for helping other therapists grow their confidence and client base. After being made redundant at 49, she retrained in massage and built a thriving practice from scratch, starting out mobile, renting rooms, and eventually creating her own garden studio. Esther now combines hands-on therapy with teaching others how to market themselves authentically, and build sustainable businesses they love. You can learn more about her work at Building A Massage Therapy Business.