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Four ways a medical professional can benefit from accountant services

Working in the medical profession rarely leaves any time to deal with other aspects of your life – including dealing with taxes, payroll, VAT and bookkeeping. However, correct taxes have to be paid and employees expect to be paid the correct salary in a timely manner. Falling behind with essential duties can be costly and result in complaints from staff and clients. Outsourcing to an accountancy practice that has specialised knowledge of the medical profession can save valuable resources.

Business structure

A medical professional has to decide whether to act as a sole trader, a partnership, a limited liability partnership, or a limited company. There are other options, but these are the most popular business structures. Working as a limited company could be a tax efficient option, although there will be more responsibilities. However, a limited company offers some protection against any financial problems, whereas acting as a sole trader means you are responsible for all company debts and liabilities. An accountant will be able to advise which type of business structure will be most advantageous.

Tax planning

Although you have a responsibility to pay the correct amount of tax in a timely manner, it is possible to legitimately minimise the tax payable. There are many ways to make sure you pay the least amount of tax possible, including the annual allowance for pension contributions, opening an Individual Savings Account with the maximum amount available, and reducing the amount of Capital Gains Tax you pay. An accountant can ensure that your tax code is correct and that you are claiming all allowances and reliefs you are entitled to. An incorrect tax code could mean you are paying too much tax, or even not paying enough.

A reputable accountancy practice has the relevant knowledge to be able to advise which allowances you are able to claim. A business owner who doesn’t outsource to an accountant is more likely to pay more tax, as they don’t know which allowances and tax reliefs they are entitled to claim. Capital allowances and fixed assets are a complex area, and specialist knowledge is often required. Tax planning at the start of the tax year can reduce your tax bill significantly by the year end.

Specialist knowledge

Outsourcing to an accountancy practice with specialist knowledge of the medical profession will ensure that your business is operated efficiently. Medical professionals have many options when choosing how to run their business, some of which are more beneficial than others. A reputable accountant with knowledge of the field will be able to maximise profits while ensuring that the practice runs smoothly, keeping clients and employees happy. Medical services often involve much more than attending to clients, with managerial duties, ongoing training events, and conferences to attend.

Resources

Enlisting the assistance of a reputable accountancy practice can save time and money in the long term, enabling a medical practice to function smoothly and maximise the time available to care for clients. Running a practice and caring for clients while remaining within regulatory guidelines is time-consuming, but outsourcing to a professional accountant ensures your practice runs in the most cost-efficient way.

Posted by Mark
May 8, 2014
Features

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