Prism Accounting provides 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 taxation services to clients across different specialties and at different stages of life cycle, including Residents, VMO’s, Salaried Staff Specialists, Locums, GPs, Doctors and Dentists working under private contracts, and Medical and Dental Practices.
Why do you need a medical accounting specialist?
As doctors and dentists 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 health industry, it is important to get qualified advice from medical accounting specialist to avoid costly mistakes and ensure that your after-tax income is maximised.
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 medical accounting specialist 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 and GST treatment of certain government initiative payments payable to medical practitioners
- Understand what specific expenses are tax deductible to doctors
- Have in depth knowledge of regulations affecting Personal Service Income earners in general
Common mistakes made by non-specialist accountants can include:
- Netting off service fees against gross income
- Reporting Rights of Private Practice (RoPP) Drawings as gross income
- Incorrectly claiming or missing out on GST credits for service/infrastructure fees
- Applying incorrect GST treatment to fee 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 structuring for medical practitioners resulting in breach of anti-avoidance provisions
- Claiming excessive amounts paid under service entity arrangements
- 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 Allied Health Professionals
- Salary Packaging Advice for Medical Professionals in Public Hospitals
- Private Practice Structuring Advice and Set Up
- Registration for ABN, TFN, GST and PAYG Withholding for Individual Practitioners and Other Entities
- Practice Acquisition and Buy Ins
- Service Entity Arrangements
- Restructuring or Selling your Practice
- Assessing Eligibility and Advising on Small Business CGT Concessions on Practice Sale
- 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 for Medical and Dental Practices
- Income, Tax and Cash Flow Projections & Forecasting
- Business Performance Advisory
- Real Estate Property Investment and Transactions
- Capital Gains Tax Calculations
We have partnered with other industry professionals to provide our clients access to full range of financial services, including:
- Financial Planning and Wealth Management
- Self Managed Super Fund (SMSF) Establishment and Advice
- Life and Income Protection Insurance
- Residential, Commercial and Business Loans and Financing
Ready to get started? Let’s have a chat.
Book a free no obligation Discovery Call with our Tax Adviser to discuss your situation and see how we can assist with your accounting and taxation requirements.