Accounting Service for Medical Practices
Medical practices are complex businesses, so having a knowledgeable accountant is recommended to receive the best help with tax and accounting issues. As an accounting service for medical practices in the Farmville and central Virginia area, the Benjamin H. Johnson CPA firm stays informed of the latest federal and state tax laws concerning these professionals. Listed below are just a few of the tax issues that might affect medical practices.
Tax benefits of leasing vs purchasing equipment for medical practices
Most medical practices require some type of expensive specialized equipment. What many medical professionals do not realize is that leasing equipment in some cases offers better tax benefits than purchasing equipment. Payments for operating leases for equipment are tax deductible under the IRS tax code. Also, it can be more efficient to lease equipment that might get outdated quickly.
In some cases, leasing equipment is either not an option or doesn’t make sense–for example, if the equipment needs to be customized for a specific purpose. Ben Johnson can help you determine the best way for a medical practice to purchase equipment to limit tax liability.
Tax implications of various types of medical business entities
There are different businesses types that medical practices can file under such as partnerships, sole proprietorships, corporations, and LLCs. Each one of these business types has different requirements for paying taxes. Depending on your business model, sometimes there can be significant benefits to using one type of business entity vs another. Ben Johnson is very knowledgeable of each of the business types a medical practice has available to them and will be able to tell you which type makes the most sense for your business.
Tax deductions for medical residents
As employees, most medical residents must use the same rules for tax deductions as any other type of employee. While they can deduct unreimbursed work-related expenses, to do so they must itemize their deductions rather than taking the standard deduction. This may not be the best option in many cases.
However, it is sometimes possible for medical residents to moonlight and be paid as an independent contractor (for example, an anthe providing services for an oral surgeon). In this case, they could deduct all expenses related to their work as an independent contractor using Schedule C (even if those expenses were also necessary for their work as a resident). Taking these types of deductions can quickly become complicated, which is why it is helpful to get help from an accounting service for medical practices such as Benjamin H. Johnson CPA.
Deductions that are overlooked by medical practices
There are several deductions that doctors and other medical professionals miss out on. It is important to take the time to go over your deductions with a CPA to ensure the largest tax savings. Examples of deductions that are often overlooked include the cost of a medical license, education related to work, patient refunds, and mileage deductions, among others. Ben Johnson can help ensure that medical professionals are aware of all the deductions available to them and keep the appropriate records so that they aren’t missed.
Employee benefits for a medical practice
One of the most common ways to provide a benefit to the employees of a medical practice is by hiring a third-party group to implement a retirement plan for your medical practice. A company-wide retirement plan will provide a deduction for the contribution made by the medical practice to the employee’s retirement plan. As always, it is advised to consult a tax accountant beforehand to ensure that all terms are fully understood before implementing any kind retirement plan for your business. Benjamin H. Johnson will be able to discuss other ways a medical practice can provide financial benefits to their employees.
Billing procedures for medical practices
One thing that medical practices must deal with on a regular basis is billing their patient’s insurance companies. It is very important for a medical practice to have a billing system set up correctly so that procedures are properly coded. Otherwise, insurance companies may not pay for procedures that should be covered under their plans. Ben Johnson can help medical practices set up an interface between their billing and accounting systems so that everything is correctly tracked.
If you are a medical professional in the Farmville area and are interested in finding out how the accounting services of Benjamin H. Johnson CPA might benefit you, call our office today to schedule a free consultation.