Why are Bookkeeping Services Important for Doctors?
Healthcare professionals have unique accounting and tax planning needs. Without proper accounting and bookkeeping services, doctors and other healthcare professionals can find themselves paying too much on taxes at year-end. Hiring a professional with industry experience can guide you and your practice through the following industry-specific issues:
- Income recognition: Determining whether you should recognize income when it is received or when it is billed could be an issue for many doctors. Deciding between cash and accrual basis for tax purposes is crucial in determining your year-end tax liabilities.
- Subcontractors/Employees: When doctors grow their practice and begin hiring other doctors, there are many legal and tax implications to consider about subcontractors or employees.
- Medical billing: Deciding when to bill insurance, when to outsource your medical billing or when to recognize the income are all important accounting considerations for healthcare professionals.
- Equipment purchases: Figuring which equipment should be depreciated, and which equipment can be expensed in the year it is purchased.
Accounting for doctors and other medical practices can be complex. Hiring an expert with industry experience can help you obtain peace of mind and focus on growing your practice. With SaveOnBookkeeping, you’ll receive clear, concise financial data every month. This will include a management report as well as customizable financial insights that will help you evaluate the strengths and weaknesses of your business. Monthly reporting is essential for growing businesses which are looking to become more successful.
Tax Planning
Tax planning opportunities for doctors can provide substantial tax savings each year. Without proper tax planning, many doctors and healthcare professionals end up paying too much on taxes and can’t make any changes after the year is over. With accurate bookkeeping throughout the year, doctors can keep an eye on their tax situation and make any moves necessary to help save money in taxes. Whether it’s buying a new company vehicle, purchasing some medical equipment, or taking year-end bonuses, SaveOnBookkeeping can guide you through the most effective and efficient ways to plan for tax time.
What You Get with SaveOnBookkeeping
By selecting SaveOnBookKeeping for your business, you will have a thorough comprehension of:
- The overall financial gain or loss of your business
- Expenditures in different areas, such as materials, contractors, etc.
- WorkSafe BC filing
- Processing Pay stubs and Pay cheques for employees
- Vendors and customers reconciliation
- Bank and Visa reconciliations
- And many more!
If you’ve been looking for an outsourced bookkeeping and accounting service focused on helping you achieve measurable financial results, get in touch, SaveOnBookkeeping is the partner you’re looking for. There’s no obligation, and we can meet online, or in person.
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