Key Benefits of Hiring a Small Business Accountant for Your Medical Practice
Are you trying to improve the operating margins of your medical practice in Sydney or Liverpool? You are going to need the support of a good small business accountant.
Australian medical practices face a number of challenges. The Medical Journal of Australia has highlighted some of these issues. It stated that financing was one of the biggest concerns that general practitioners have raised. Medical practices are struggling to offset rising operating costs without losing customers by raising prices.
The most astute medical practices invest in a qualified small business accountant. You should understand the benefits of hiring an accountant.
Reasons to Hire an Outside Accountant for Your Medical Practice
There are a number of reasons to hire an accountant for your medical practice. Some of the biggest benefits are listed below.
Your practice is too small to hire a full-time small business accountant
You may have considered hiring a full-time accountant. Virtually all major hospitals have full-time accountants on staff. If you used to work in a large hospital, this may seem like the obvious thing to do.
However, smaller medical practices may not be generating enough business to justify hiring a full-time accountant. You might only need to hire an accountant for a couple of hours a week. You can use an independent accounting firm that will only bill for the hours that you need.
Identify billing errors
Billing errors can be costly to medical practices. A seasoned accountant can identify these mistakes. They will make sure your practice is properly compensated for the services it provides.
Prevent cost overruns
There are a number of costs involved with running a medical practice. Some of these costs are unavoidable, such as paying a nurse or receptionist and purchasing necessary supplies. However, you might have invested in some ancillary services that are not needed. If you aren’t careful, these costs can add up and threaten the financial stability of your company.
A healthcare accountant can review your income statement. If they feel your profit margin seems too low, they can take a closer look at your ledgers. They will identify ways to save money by trimming your operational costs so you can enjoy a healthy cashflow.
Stop embezzlement before it ruins your business
You understandably want to trust your employees. Unfortunately, some employees will steal from their employers, including medical practices that they work for. Embezzlement is a less common problem. However, it can drive your company into bankruptcy if it is happening.
A trained accountant can identify embezzlement before it is too late. They will bring the issue to your attention so you can take appropriate action.
Make sure your taxes are done properly
Taxation is one of the most frustrating realities of running a medical practice. The federal tax rate for small business owners with incomes over $180,000 in Australia Is 45%. This can be a burden to all small businesses owners unless they minimise their taxable income.
You might miss valuable tax deductions and credits if you try doing your taxes on your own. You also risk underpaying and getting in trouble with the tax authorities.
This is one of the biggest benefits of hiring an accountant. They will help maximise your deductions.
Contact our office for more information
Are you running a medical practice in Sydney or Liverpool? You need the advice of qualified accounting professionals to help you make smart financial-related business decisions. Please don’t hesitate to contact us if you need our services. We can help with everything from tax returns to setting up your business structure. We look forward to hearing from you!