If you announce your accountant credentials, every person needs some tax advice, even your dentist or doctor. It’s true they might request advice during the midst of a visit.Instead of giving financial advice at the drop of a hat take a look at these professionals in the context of potential customers. The healthcare industry is a growing sector and medical or dental accountants practises comprise a significant segment of this.
While numerous dentists and doctors need help with their finances, they might not realise that they may also require an expert in technology or a business strategist. In this way, offering high-value services to these companies could be an important part of your accounting process.
Of course, dental and medical practises are different from other kinds of businesses. Every country and each jurisdiction will have their own rules for licensing, regulations and taxation. That means you’ll have to be aware of the local regulations when you advise your dental and medical clients.
However, there are general guidelines that are applicable to the majority of healthcare organisations regardless of where they’re situated. Here are some aspects to consider in helping dentists or doctors to get their practice functioning.
1.Integrating The Practice
Dental bookkeeping and medical practises are high-risk businesses. The first thing on your agenda is helping your clients incorporate their practises. The incorporation of a company limits the liability of corporations’ shareholders, which means that shareholders aren’t responsible for any obligations as well, in event of a lawsuit, for obligations.
Incorporation procedures vary from one jurisdiction to another, however certain things are generally the same. They include:
Incorporating articles with a federal or state office that outlines where the company is located, the manner in which shares are distributed and other similar details.
2.Selecting A Unique Business Name
The creation of corporate bylaws, for example, when and where to have annual shareholder meeting
There are fees associated with incorporation registration as well as annual tax filings. However, companies that are incorporated tend to pay taxes with a lesser cost than individuals.
3.Equipment For Purchasing
The next item on your agenda is likely to be about buying equipment. Modern dental and medical practises are based on the most recent technology, and therefore buying equipment is the most expensive initial expense for these companies.
It’s crucial to be aware that your dental accounting services and medical patients are different from your customers in other industries. In contrast to other industries, it’s not recommended in all medical practises to purchase second-hand equipment. It is better to inform your dental or medical patients to adhere to these guidelines:
- All equipment must be updated in accordance with the latest safety standards.
- Make sure you purchase your equipment from reputable suppliers
- Make use of a lawyer for the purchase and make sure that the equipment meets regulations for employment and medical.
- The employees must be properly trained to operate any equipment, especially equipment that directly affects patients for example, X-rays
- Regularly inspect equipment to make sure it’s operating efficiently, and to be up to date with any requirements for replacement
Your clients are likely to borrow money to purchase their equipment. The tax laws of the majority of jurisdictions will take into account the capital cost and depreciation costs for large equipment purchases. But, it is important to study your state’s tax laws regarding equipment purchases so you can offer your clients more specific guidance.
4.Paying, Managing And Hiring Employees
Dental CFO and medical professionals, especially those who are beginning their careers, might not have the habit of seeing them as employees. Your job as consultant to business is to assist them to get into the habit of looking at their practice from the manager or owner’s perspective.
The hiring, management, the hiring process, and remuneration (though we hope not to dismiss!) staff members will soon be the norm in the professional lives of your clients. As your accountant, you will be a major part of the process of learning.
Begin by giving guidance regarding the general rules of employment in your area, focusing on topics like security and overtime, minimum wage as well as annual vacations and holiday days that are statutory.
Most of the time your provincial or state government will have a user-friendly website that explains to employers what they need to know about hiring employees.
It is important to inform your clients that it is best to comply with the government’s standards in addition to the guidelines for working hours and the expectations for pay review in an agreement signed by the practice and the employee.
5.Revision Of Tax Guidelines
Tax rules specific to dental and medical practises will vary from jurisdiction to jurisdiction. There are certain accounting and bookkeeping best practises to discuss with your dental and medical clients. They are:
- The accounting for expenses of all kinds
- The reconciliation of accounts should done at least once a week. As their habits grow, they might have to reconcile accounts a few times each week.
- Keep detailed records of the business transactions including employee pay, purchasing equipment?
- Sorting everything out by month and clearly labelling each receipts
Implementing Tools For Business Management
In the final phase make sure you recommend your dental or medical clients to think about tools for business management. As a professional in accounting you’re well-aware of the advantages of integrating your software for business with your accounting software. Why not pass this knowledge to your customers?
The Benefits Of Outsourcing
Outsourcing helps reduce the chance of making serious errors or fraud arising from your work since the tasks are separate, and strict procedures are implemente to create the financial statements of the business. Many outsourcing companies offer at least two reviews of each step, and different levels of personnel that are assign to a single account.
There are rules that require one employee to look over another’s work in order to find any differences. Sometimes internal bookkeepers are charge with additional duties, like HR management. This is a problem since they are able to take the time they need to devote to their main task.
This can lead to recording invoices, bills to pay as well as data entry given precedence over financial reports and collections. When you outsource your accounting functions you will be able to eliminate instances of inexplicably inaccurate, irrelevant or delayed financial reports. The choice to outsource could help you decide the most important aspects of your business.
Summary
The work of running a dental practice can be stressful and demanding. The health care sector in the public sector is becoming increasingly competitive due to stricter regulations. In the industry along with constant technological advancements and patients that want more but pay less.
The most successful practises are those that are able to provide efficient financial management and the ability to maximise profitability and manage it effectively. Technology is pushing accountants out of their secluded spaces to offer more value-added strategies and advice.
