Doctors and Dentists - Medical Accounting

 

Incorporate your Medical Practice

Incorporating your practice can help you shoulder the burden of tax and accounting for yourself. With more control over how profits are distributed and taxed, as well as opportunities to save on income splitting with family members or retirement savings plans that match our current economic landscape - incorporating is an intelligent decision worth considering!

Tax plans and Strategies

Medical doctors are in a unique position to help their patients. But when you start practicing and accumulate capital, tax planning becomes more complex - CapexCPA will review your current goals while considering future ones so that we can determine appropriate asset protection strategies as well as investment options for retirement savings or insurance coverage based on the type of business entity best suited for what you need (e..g., sole proprietor versus partnership).

Tax Preparation and Compliance Services

If you are looking for an easy-to-use, cost-effective and efficient accounting system that will meet the needs of your medical practice then CapexCPA is here. We can help with day-to-day tasks such as setup or training on our cloud-based platforms Xero or Quickbooks.

If this sounds like what's right up your alley give us a call today!

You started a Medical Practice business to serve your patients not to do Accounting.

Let us help you build a solution for your Accounting and Tax needs.

FAQ’s - MEDICAL EDITION

  • You can tap into Dividends and other asset protections that are available under an Incorporation. So generally, it’s better to incorporate but this really depends. See more information here https://capexcpa.com/incorporations

  • SRED stands for Scientific Research and Experimental Development. This is part of your Corporate T2 Tax return and you can claim back your salary and other development charges related to some level of new innovation or research being completed by you or your company.

    We can facilitate a 20-minute call with our SRED Consultants to see if you are eligible. It’s free.

  • Yes. We can ensure your income is high enough to meet mortgage requirements and we are connected with all the A and B-rated lenders and banks.

  • Yes you can pay your spouse a reasonable salary. What’s reasonable? If you were to hire someone to do the exact job would you pay that amount to them? if so then it generally passes the reasonable test. Your accountant can help you decide this and plan better.

  • We can manage your Holding and Operating company management. It is super important to manage these intercompany transactions to maximize your tax position.

  • Succession planning is the process of selecting potential successors for a business. It is never too early to begin setting up a succession plan, as it is an ongoing process that you will likely revisit many times throughout your medical career.

  • Expanding your currentpractice or buying one is a decision that requires careful thinking and planning. Some of the factors you should consider are:

    • Operational costs – have they gone up during the COVID-19 pandemic?

    • How much do you know about running a business or expanding one?

    • If purchasing a practice, do you know the team and enjoy working with them?

    • Do you have the finances (or funding) to buy/grow a practice?

  • Renting vs. buying is a question many business owners grapple with. Each has its pros and cons and there is no one-size-fits-all answer. Whether to rent or buy equipment and office space depends on your individual circumstances.

    For instance, if you are just starting your healthcare practice under the sole proprietorship model, leasing may be the way to go – at least in the beginning. Please note you assume all the risks of running your business as a sole proprietorship. Signing a one or two-year lease ultimately exposes you to less risk than taking on a 10 to 15-year mortgage.

    With a new business, it is also hard to predict where you will be in a year or if your practice is going to grow. Leasing provides flexibility to expand your business, makes it easier to relocate, and, in the case of equipment, ensures your practice is equipped with up-to-date technology.

    If you have an established practice, are confident in your growth projections and have stable working capital, then owning may be right for you. The Capex CPA team can help you figure out which option is best.

  • For this, you’ll want to get a Capex CPA accountant involved in the early stages of setting up your practice. They’ll be able to help you put together a budget and estimate your cash flow for at least a year. Your business plan should also include financials, including your projected cash flow – income, expenses, and revenue.

  • Yes. We always include the shareholder and the spouse as a package deal.

  • Yes, if you are using the Home office to meet patients and conduct business. These days the patients don’t even have to come to your house physically thanks to Zoom.

    You can claim a portion based on the total square feet of your house and the total square feet of your office taken as a % and multiplied by the expense is the total claim amount.

  • If it’s a general question during the year you can send us an email or book a call with us.

    If it requires us to calculate something then it’s a billable event for us.

    So if it takes less than 10-15 minutes we don’t even charge for that.

  • Lifestyle Tax Strategy is a 2-hour session we do with Robot Transcription and ask you very particular questions related to your budget, credit, wealth, and future planning.

    We use all the keywords and learnings from this session to maximize your tax return and help grow your wealth.