Case Study -- Colleen Cavanagh

Case Study: From Financial Overwhelm to Clarity — How Colleen Cavanagh Transformed Her Therapy Practice

Client Overview

Colleen Cavanagh is a holistic psychotherapist with over 20 years of experience, specializing in somatic therapy, family therapy, trauma recovery, and cancer therapy for families facing pediatric brain cancer. Her passion lies in helping clients heal through a mind-body-spirit approach, but the business side of her practice left her feeling stuck.

The Challenges

When Colleen came to us, her financial situation was causing significant stress:

  • Unpaid Quarterly Taxes: She couldn't keep up with estimated tax payments, leading to penalties.
  • Disorganized Accounting: Taxes were prepared at the last minute without proper tracking of income or expenses.
  • No Systems in Place: Without tools to manage her business finances, Colleen felt overwhelmed and unsure of where to start.

“I was underwater financially,” Colleen explained. “I didn’t have a system, I wasn’t tracking anything, and I was steeped in tax penalties. The stress was constant.”

Why She Chose Us

Colleen decided to work with a CPA specializing in therapists after speaking with David Leichter.

“I was intrigued that David only works with mental health professionals. I immediately felt that he understood the unique stressors of this field and would guide me well.”

The Solution

We crafted a plan tailored to Colleen’s needs, focusing on immediate financial organization and long-term business growth. Key steps included:

  1. Financial Organization:
    1. Transitioned Colleen’s practice from an LLC to an S-Corp to optimize tax efficiency and prepare for future growth.
    2. Introduced QuickBooks to track income and expenses on a weekly basis.
  2. Tax Strategy:
    1. Established quarterly tax payments to eliminate penalties and provide predictability.
    2. Conducted a comprehensive review of past returns and uncovered significant missed deductions, such as continuing education, office expenses, and professional tools.
  3. Business Guidance:
    1. Provided insights into fair pricing for her services, helping her confidently raise her rates.
    2. Offered mentorship on envisioning growth opportunities, including retreats and passive income options.

The Results

Within six months, Colleen’s financial situation improved dramatically:

  • Cash Flow and Clarity: Weekly tracking gave her a clear picture of her income and expenses.
  • Tax Compliance: Quarterly planning ensured she was no longer facing penalties or scrambling at the last minute.
  • Confidence in Growth: Transitioning to an S-Corp laid the groundwork for scaling her business and exploring new revenue streams.

Colleen also noticed a personal transformation. “I’m less stressed about finances, and I now have a vision for my financial future that’s inspiring. I’m confident I’ll be financially abundant within the next couple of years.”

What Stood Out About the Experience

“David and his team don’t just handle taxes — they really care about helping your business succeed,” Colleen shared.

“David inspired me to dream bigger, recognize my value as a therapist, and trust in my ability to grow. I’ve also had incredible support from the entire team. Chana, for example, was so patient with me as I learned QuickBooks. She walked me through everything step by step when I felt lost.”

Moving Forward

Colleen is now focused on expanding her practice, building a social media presence, and creating passive income streams through retreats, video lectures, and ebooks. She feels confident that her financial foundation is strong enough to support these goals.

Final Thoughts

“This partnership has been a game-changer,” Colleen said. “Having an accounting team I trust has allowed me to focus more on my clients and less on my stress about finances. I recommend this firm to any therapist who feels like they’re struggling to stay on top of their business.”

Take Control of Your Private Practice

Colleen’s journey shows how powerful the right financial guidance can be. If you’re ready to take control of your practice’s finances, we’re here to help. Contact us today to get started.