How an Accountant Can Help You When Starting a Medical Practice
Are you starting a medical practice? It might feel like you have a never-ending list of tasks to complete, but it’s essential not to neglect your accounting. Getting this right from the beginning can save you both time and money in the long term. Here’s how we can help:
Making Early Decisions When Starting a Medical Practice
If you’re still in the early stages of starting a medical practice, you might still be in the decision-making phase. If this is the case, and you’re trying to decide your first steps, an accountant can help you figure out whether it’s more beneficial to start your practice from scratch or buy an existing practice.
Both have advantages and disadvantages, but the most important thing to consider is the financial aspect — one poor decision can damage the success of your medical practice before it even opens its doors.
Cash Flow Forecasting
When you’re starting a medical practice, you will have a range of costs to consider. From the equipment and medical supplies you need to treatment, there are plenty of ways you will need to invest.
This need for investment can cause cash flow issues, so it’s crucial to start the business with a plan.
Poor cash flow arises when you don’t have enough money coming in to pay your expenses. This lack of financial planning brings about many negative implications, so speak to an accountant to make sure you hit the ground running with a solid plan.
If you’re a medical professional, that’s where your expertise lies. When you work with an accountant, you ensure you have the time to do what you do best while leaving the accountant to the activities they do best: including tax planning.
Although it wouldn’t be impossible for you to do this yourself, it can be hard to keep up with the tax rules changing regularly. An accountant keeps up with the latest guidelines. This commitment to staying up to date ensures your business is always operating legally and efficiently.
Securing Investment and Funding
Do you need funding now to get your medical practice off the ground, or is it something you think you’ll need to consider in the future? An accountant can help you make sure everything lines up well to secure investment.
As well as an understanding of the financial aspects, and the preparation that goes into making the investment work, accountants know what investors are looking for. This knowledge helps us ensure you have the best possible chance of success.
Give You Back Time
This benefit is the most important, yet underrated thing accountants can help you with when you’re starting a medical practice. Taking care of your accounts is time-consuming. As we’ve already said, you’re a medical professional — not an accountant.
Outsourcing the financial side of your business ensures you have time to perform the necessary tasks required, such as prioritising patient care.
You might not be thinking about your plan to leave the business yet, especially if you’re only starting your medical practice.
But if this is something you would like to consider in the future, it’s a good idea to give your exit strategy some consideration at the start.
Again, your accountant can help with this, providing tailored advice to make sure you get the most from any potential future sale. This isn’t something business owners decide to do on a whim, but the result of careful planning and consideration from the beginning.