At Prism Accounting, we provide specialist accounting and taxation services for doctors, dentists and allied health professionals. With years of experience in medical accounting, our advisers can identify opportunities to legally minimise your tax, provide structuring advice, assist with practice set-up and ensure your ongoing tax compliance needs are taken care of.
Our advisers are experienced in providing medical accounting and tax solutions to clients across different specialties and at different stages of life cycle, including Residents, VMO’s, Salaried Specialists, GPs, private practitioners and medical practices.
Why do you need a medical accounting specialist?
As doctors are among the highest earning professions in Australia, it is not surprising they have always been subject to increased scrutiny from the ATO. With large array of anti-avoidance rules, tax regulations, and continuous developments affecting medical industry, it is important to get qualified advice to avoid costly mistakes.
Non-specialists accountants may have a good general understanding of tax law but they may not have specific knowledge and skills to be able to deal with unique issues affecting your profession.
A specialist medical accountant is expected to:
- Stay up to date with tax regulations, ATO rulings, court cases and developments affecting medical industry in general
- Understand differences between various contractual arrangements that doctors may be subject to and be able to apply correct tax treatment
- Be able to apply correct GST treatment to different sources of fee income (GST Free sales vs GST sales)
- Understands tax treatment of certain government initiative payments payable to medical practitioners
- Understand what specific expenses are tax deductible to doctors
Common mistakes made by generalists accountants can include:
- Netting off service fees against gross income
- Reporting RoPP Drawings as gross income
- Incorrectly claiming or missing out on GST credits for service/infrastructure fees
- Applying incorrect GST treatment to fees income
- Not understanding super guarantee requirements applicable to certain arrangements resulting in miscalculating personal super contributions (e.g. sessional VMO payments in NSW)
- Using incorrect business structure for medical practitioners triggering anti-avoidance provisions
- Incorrectly using service trust agreements
- Failing to recognise whether the practitioner is acting as a principal or as a contractor/employee for the medical practice
Prism Accounting can assist you with:
- Tax Advice, Planning and Minimisation for Doctors, Dentists and Health Professionals
- Practice Structuring Advice, Formation and Registration
- Practice Acquisition and Buy In
- Service Entity Arrangements
- Restructuring or Selling your Practice
- Preparation of Annual Accounts and Financial Reports
- Preparation of Management Periodic Accounts and Interim Reports
- Income Tax Returns, BAS & GST Reporting and Compliance
- Accounting Software Solutions and Cloud Accounting
- Income, Tax and Cash Flow Projections & Forecasting