Top Tips For Managing Your Private Practice Finances
It can be really difficult and overwhelming for anybody with little to no experience in accountancy to really get a good grasp on what is required from you as the owner of a private practice. Here at Accounts Unlocked For Doctors, we know how time consuming and confusing managing finances and working out taxes can be, which is why we have developed a range of packages that are available for medical professionals of all calibre, including private practice owners, so that they can concentrate on helping patients instead of jamming numbers into calculators.
We are sharing on our expert tips on managing your private practice’s finances…
SEPARATE YOUR FINANCES
First and foremost, if you don’t already , you should keep your practice finances separate from your personal finances. Having a separate business bank accounts and using a regular tracking tool like Quickbooks are essential tools to have to ensure you keep your personal and professional finances separate. You can then you pay yourself just like you would get a salary from an employed job.
PROFIT & LOSS STATEMENTS
Another area of your financial commitments that is good to look at often is the profit and loss statement. This will give you a really good idea of how well your practice is doing and if you are actually making money or not. It will measure your income and profit and show you where you are spending with expenses. There are so many benefits of using profit & loss statements, not only will this encourage budgeting and will give you a better grasp of what works and what doesn’t, it will also give a forecast of times, days and months that you are excelling profit in.
GET YOURSELF AN ACCOUNTANT
It seems like a no brainer right? But some people don’t consider or understand the full benefits of having an accountant to take control of their taxes, and it’s not until they are faced with a tax return, do they realise that unless you are knowledgable on these returns, it’s almost impossible to know if you’ve done everything right. A medical accountant is a worthy investment for any private practice, whether you outsource or bring someone in salaried to take care of your finances.
We consider these to be the most important elements of taking control of your private practice’s finances and will ensure you can remain focused on your patients. Your financial success in private practice, generally comes from being able to manage and understand the financial side of things. By having knowledge of these basic essentials will give you a better understanding of your practice.