Medical accounting for doctors in Sydney
Why do medical professionals such as doctors and dentists need accountants in this modern era of technology?
Simply put; medical professionals who run small businesses need specialised accounting advice to successfully run their medical businesses. Bots (robots) cannot do the same job a specialised, educated, professional accountant can do. These “free” tools that are promoted all over the internet, are often inaccurate, outdated or useless. They promise practice management and real results over time that entices professionals to use them, and it’s always too late when the consumer decides to check in to see what progress has been made; only to find none has.
Professional accountants not only identify opportunities that can help streamline your medical business but also assist in identifying areas where you can cut costs and save money. Investing in a professional and licensed accountant for your medical practice is often a critical decision in moving your business forward.
As a doctor, once you’ve chosen an accountant to work with, it’s important to have free-spoken and clear channels of communication in order to understand the well-being of your medical practice. Besides getting value for your money from your accountant, they will also help your business’ bottom line, tax returns and anything else you need.
Errors frequently made by non-specialist accountants include:
- Netting off income and expenses that can result in incorrect GST claims.
- Incorrect tax treatment of superannuation contributions paid or due to be paid, resulting in the wrong tax relief being applied.
- Allocating profits incorrectly, particularly regarding personal services income. This can affect the balances due to or from partners.
- Miscalculating superannuation contributions where there is a mix of self-employment and employment.
- Including income to which PAYG withholding has been applied in the accounts, resulting in the income being taxed twice.
Investing in an accountant is no longer a luxury, rather it’s a critical and necessary investment. Having open communication with your accountant needs to start from the moment you meet them. Accountants are very essential when it comes to the success of your business. As such, it’s quite crucial for you to build a relationship with them and ask lots of questions to assist in the growth of your medical practice.
Accountancy can cause headaches for medical practices when those involved typically just want to get on with the job of looking after people’s health. With this in mind, here are some easy tips and tricks that can save your practice from the kind of headaches that can come at tax time with inefficient or poor bookkeeping.
A good medical account should:
Simplify and automate your practice tax, payroll and accounting functions by implementing a accounting solution that does everything for you.
Establish companies, trusts and self managed super funds to protect your personal and business assets from potential lawsuits.
Implement permanent tax reduction strategies and structures to increase your personal and business cash flow.
Tax-effectively structure practice, home and investment loans and save thousands in interest repayments each year.
Make smarter personal investment decisions and tax-effectively grow your wealth.
Purchase your business premise through your self managed super fund.
Customise estate planning strategies and structures that will allow your wealth to be transferred to family members and beneficiaries tax-effectively, whilst providing asset protection.