CTK Accounting offers comprehensive accounting solutions tailored to the specific needs of medical clinics across Australia.
Medical clinic owners face a unique set of challenges when it comes to tax compliance and business operations due to the sensitive nature and importance of their services, arrangements with contracting medical professionals and their positioning as intermediaries between the general public and government-funded benefits.
Having a proactive, knowledgeable and reliable tax advisor by your side helps alleviate the burden of tax compliance and lifts practice owners into higher-level thinking involving important business issues and strategy.
CTK Accounting is a registered CPA and tax agent accounting firm based in Wollongong that offer comprehensive accounting services to medical clinic owners.
With the government pledging $358 million over 5 years beginning 2023FY to establish 58 Medicare urgent care clinics, regular general practice clinics might find client retention easing as bulk billing urgent care clinics open up close by.
Medicare UCC’s are propped up by government incentives and some argue that this may distort the competitive market.
Despite your beliefs on these clinics there is no doubt that there has never been a more important time to ensure your clinic is lean, compliant and minimising tax to put more back into the business and remain competitive.
The indexing rate for most Medicare items is currently 3.6% which is below the current rate of inflation in Australia which sits at approximately 5.5% as at the end of 2023.
This discrepancy is putting pressure on GP’s to move towards mixed billing as the lagging Medicare indexing is essentially a pay cut for doctors.
Given that the current level of bulk billing for GP services where no out-of-pocket expenses are charged currently sits at 90% there is no doubt that there are many more practices who will likely move to mixed billing to ensure equitable income for their services in the future.
At the same time, many GP’s know their clients well enough to know that even small out of pocket expenses may be enough to scare away lower socioeconomic clients who need the care the most, this a big reason that more clinics have not moved to mixed billing already and can be a morally complex decision to make.
Missing reminders and patient follow ups in most businesses usually poses no great risk, however this is not the case for medical clinics and their doctors.
Patient recalls and reminders must be initiated in a timely manner to ensure patient safety and limit the risk of legal action against the clinic.
Often, practice managers and clinic owners will spend many hours ensuring their practice management software is running smoothly. Along with the internal functions of practice management software there is also the financial side to consider which will be ensuring that all financial data is flowing through to the accounting system properly.
Every hour clinic owners spend on setting up their accounting system processes is an hour that could have been spent on much more high value matters relating to internal practice management.
Regardless of the entity structure you are operating under, there are common themes for the tax related issues affecting medical practices.
Clinic owners will have to navigate income tax, payroll tax, GST, Fringe benefits tax, Payroll processing, bookkeeping and much more to keep their practice compliant and contractors and employees happy.
Medical clinics also have to navigate personal services income rules, compliance guides released by the ATO and part IVA of the tax act which relates to tax avoidance.
Having a proactive, knowledgeable and reliable tax advisor by your side helps alleviate the burden of tax compliance and lifts practice owners into higher level thinking involving important business issues and strategy.
We offer comprehensive accounting services to medical clinic owners in the Illawarra region. Our aim when taking on new clients is to take over the tax, bookkeeping and payroll function of the business, allowing our clients to delegate the whole accounting function of their business to us. This not only saves costs on having to internally hire bookkeepers and payroll staff but also reduces compliance risk, the risk of excess taxation and the risk of overlooking important business issues due to being inundated with admin work.
Reviewing entity structure to maximise tax savings
Reviewing Personal services Income rules and ATO practical compliance guides if necessary, to ensure your professional services business is compliant.
Set up your business on leading accounting software, we use Quicbooks and Xero
Payroll and superannuation processing
Proactively plan for the best tax outcomes
Use current data to make sound business decisions around hiring, expanding and sustainable operations
Provide accurate data to banks or financial institutions whenever financing is needed.
Our comprehensive accounting packages for clinics start at $7,200 + GST annually.
If you are ready to explore having CTK Accounting as your trusted advisor and accountant, get in touch and we would be glad to see if we are a good match for your business.