Boost your medical practice with the help of accountants who specialise for doctors

Introduction:

As a medical professional, your primary focus is on providing quality care to your patients. However, it's important to remember that running a successful medical practice is not just about treating patients. It also requires sound financial management and strategic planning to ensure long-term sustainability and growth.

This is where specialised accountants for medical professionals come in. These professionals have a deep understanding of the unique financial challenges and opportunities that medical practices face. They can act as business advisors and provide invaluable assistance in tax planning, optimising cash flow, and making informed business decisions from insights drawn from accurate financial statements.

In this blog post, we'll explore the benefits of working with a specialised accountant for doctors, and provide in depth knowledge into how these professionals can help you achieve success and thrive in today's complex healthcare market.

Benefits of working with a doctors accountant for medical professionals

Working with an accountant who specialises in medical practices can provide a range of benefits for doctors and other medical professionals. Let's explore the specialised benefits that professionals from medical practice can expect from industry expert accountants.

Helps to find the right business structure setup

Choosing the right business structure is crucial for any medical practices, as it can have a significant impact on your tax obligations, liabilities, and legal compliance. Specialised accountants for doctors can assist in this process, providing valuable advice and guidance to help you make informed decisions that support the growth and success of your practice.

Here are some ways that accountants for medical professionals can help you find the right company structures in Australia:

• Assessing your needs: A specialist accountant can help you understand the different business structures available, such as sole trader, partnership, company, or trust, and evaluate which one best suits your specific needs and circumstances.
• Tax implications: Different business structures have different tax implications, and an accountant can help you understand the tax consequences of each option. For example, a company structure for medical professionals can o
• Liability considerations: Some business structures, such as a sole trader or partnership, offer less legal protection for personal assets than others. An accountant can help you assess the level of risk associated with each structure and choose the one that provides the right level of protection for your business and personal assets.
• Legal compliance: Depending on your medical practices business structure, you may need to comply with specific legal requirements, such as registering for an ABN or GST. Medical accountants can guide you through the compliance process and help you avoid potential penalties or fines.

Types of business structures for doctors:

1. Sole trader
2. Partnership
3. Company
4. Trusts

Claim maximum tax deductions

As medical professionals in Australia, you may be eligible for a range of tax deductions that can help reduce your taxable income and lower your tax liability. Here are some of the common tax deductions that medical professionals can claim,

• Car expenses, including parking costs and tolls, when traveling to different job locations on the same day.
• Membership fees for professional associations, such as the Australian Medical Association, and renewal fees for annual practicing certificates.
• Professional indemnity insurance costs related to your work.
• Work clothing expenses, including purchasing, repairing, and cleaning items that are part of a uniform or have protective benefits.
• Equipment and tool expenses required for your work, such as a stethoscope or patient file bag.
• Self-education costs for attending courses, training, or seminars related to your current line of work, including professional development required to maintain your registration and postgraduate study.
• First aid training course costs for designated first aid personnel.
• Phone and internet expenses for work-related usage on personal devices.
• Home office expenses, including heating or cooling, depreciation, and repairs to equipment.
• Travel expenses, such as accommodation and meals, if you need to travel for work and pay for these expenses yourself.

A tax accountant specialised in the medical industry can help medical professionals maximise their eligible tax deductions by identifying all potential deductions and ensuring that they are accurately claimed on tax returns, ultimately reducing their taxable income and increasing their tax savings.

Avoid costly tax mistakes

Avoiding costly tax mistakes can be challenging for doctors due to the constant changes in tax laws and the growing complexity of regulations. As a result, seeking assistance from experienced tax accountants who specialise in the medical industry can be helpful.

By partnering with a knowledgeable medical accountant, medical practitioners can prevent common errors that occur when filing individual tax returns, such as claiming ineligible deductions, failing to properly apportion expenses or misclassifying repairs and improvements on rental properties.

Furthermore, medical tax accountants can assist medical practitioners in maximising their deductions with careful tax planning and identifying eligible expenses related to work-related expenses, business expenses, and investments. They can also help doctors navigate complex tax laws, such as the PSI rules, with their accurate tax services and ensure that they are correctly calculating GST on their medical services.

Be updated on the latest tax laws and regulations

Tax laws in Australia are constantly changing and growing increasingly complex, making it challenging for health professionals to stay up-to-date and avoid costly tax mistakes. This is where a tax accountant specialising in the medical industry comes in. By working with a tax accountant, health professionals can ensure they are aware of any changes to tax laws that may affect them and their practice.

As busy professionals, doctors may not be aware of the latest ATO guidelines on document submissions. However, by working with specialist accountants, medical practitioners can ensure that their records fall within the criteria of ATO requirements and can mitigate the possibility of hefty fines and penalties for non-tax compliance.

Be aware of effective budgeting and cash flow management practices

Financial planning is essential for the long-term success of healthcare providers, regardless of their size. The budgeting process helps healthcare professionals plan their spending and identify areas for financial efficiency, taking into account both compulsory spending and potential cost-saving measures. To ensure efficient budgeting, medical practitioners should balance marginal costs and benefits and avoid spending where the total costs exceed the total benefits or vice versa.

Medical accounting services help with monthly budgetary variance analysis and provide insights for corrective actions to improve financial control. Resource allocation is a constant challenge for doctors, as funding is often limited and needs are varied. Medical accounting services help identify cost pools and facilitate efficient decision-making for financial resource allocation with proper financial reports.

Get to know the latest technological advancements in accounting

In the fast-paced healthcare industry, keeping up with the latest technological advancements is vital to providing quality care to patients. However, it is not just limited to medical procedures and treatments. Even the accounting aspect of healthcare is subject to technological advancements.

Medical accountants play a critical role in ensuring that doctors are up to date with the latest technological advancements in accounting. They have a deep understanding of the various accounting software available and can recommend the most appropriate one for the specific needs of the medical facility. They also help doctors in identifying and implementing new technologies that can improve the efficiency and accuracy of their accounting processes.

For example, medical accountants can introduce doctors to cloud-based accounting systems, which can provide real-time financial data accessible from anywhere. This allows doctors to monitor their finances from their office, home, or even while on the go, providing them with better financial control.

Specialist medical accountants can also advise doctors on the use of accounting software with automation features that can streamline accounting processes such as billing and invoicing, payroll , and tax preparation. This reduces the amount of time doctors have to spend on financial reports and administration, allowing them to focus on providing quality healthcare to their patients.

Improved accuracy and organisation of accounting system

Working with a specialist medical accountant can significantly improve the accuracy and organisation of financial records for medical professionals. The importance of accurate and well-organised financial records in the healthcare industry cannot be overstated. Medical professionals need to keep accurate financial records to monitor their business's financial health, make sound financial decisions, and comply with legal requirements.

Specialist medical accountants can help medical professionals maintain accurate financial records by setting up an effective financial management system tailored to their needs. The accountant can organise financial records, such as income statements, balance sheets, and cash flow statements, into a format that is easy to understand and use. This type of accounting services can help medical professionals to make informed decisions based on their financial position and avoid costly mistakes.

Moreover, medical accountants can also help medical professionals to track their expenses accurately and identify areas where they can reduce costs. By keeping track of expenses, medical professionals can determine their profitability, improve their financial performance, and plan for future growth.

Conclusion

In conclusion, accountants for medical professionals can be a complex process, but utilising the expert services of specialised accountants will take away that stress. Accountants who specialise in medical accounting practice management have the knowledge and resources to make sure your books are always up to date and your financial goals are being met. CleanSlate provides outstanding support and advice when it comes to growing your medical profession.

Our team is professional and experienced and works tirelessly to ensure success for our clients from the medical profession on financial matters. If you would like assistance with bookkeeping, tax planning or assistance with financials for your business contact us today for a consultation! We look forward to connecting with you soon, and helping you boost your medical business growth!