Why Doctors Should Hire Designated CPAs & Tax Accountants?
If you’re a doctor, then you know how precious life is, and when you’re trying to save lives, perform delicate surgery, and tend to patient needs, the last thing you need on your mind is how much tax you’ll need to pay. It distracts you from the matter at hand, makes you worry, and is probably not why you wanted to become a physician in the first place.
But at the same time, you might think it’s better to struggle alone and deal with all your finances on your own. This is admirable, but there are lots of benefits to hiring an accountant you may not be aware of, especially as the average earnings before tax for physicians in Alberta was $385,000 in 2018. That’s a large amount of taxable income, even after Canadian tax deductions have been accounted for.
And when you’re being paid to do important clinical work, it’s natural to feel like you should be able to reward yourself for your efforts by retaining more of the money you earn. Many doctors have had thoughts like this, and it’s why they seek out tax accountants. One of the earliest stages that accountants in Calgary like Versatile Accounting & Tax help with is the decision to incorporate.
How Incorporation Works For Canadian Doctors?
Incorporation allows doctors to be taxed as a corporation rather than as an individual for any medical work they undertake. More than 90% of doctors in Canada function as small businesses, and there are many advantages to doing so. You can reduce your tax burden, divide your income between yourself and your partner, and put off paying taxes by keeping money inside the corporation. This allows you to hold onto more of your money.
However, this does mean you need to comply with the corporate tax system, and this can be complicated. Taxation applies at both the provincial and federal levels, plus there’s a small business tax deduction with its own specific rules. Incorporating yourself as a physician, therefore, is not something you can just set and forget.
It requires you to track your income and spending throughout each tax year. It also creates a separate legal structure that must obey a variety of regulations. That’s why many physicians choose to use experienced CPAs in Calgary or a qualified Calgary accounting firm that knows the system inside out.
Access To Expert Accounting In Calgary
A special advantage of using an accountant to deal with what we’ve discussed here is that it brings an end to hours of scouring the Internet for answers. There’s no need to spend valuable time on the computer when a trusted partner as an accountant is at your service. You can drop a quick message to them and ask the burning question you need an answer to.
Plus, you’ll be getting the advice you can trust from people who are experienced and certified to deal with your finances. That will always be far better than anything you’d find with a search engine because it’s backed up by first-hand knowledge and experience.
What Doctors In Calgary Should Look For In An Accounting Firm?
Now you know about incorporation and the benefits of having sound advice for your finances, you must be able to judge what separates average accounting for medical clinics from great accounting for the same.
Here are some key points that Versatile Accounting & Tax follows:
Knowledge Of Accounting For Medical Professionals
Managing the accounts of different professions and businesses has some similarities, like submitting a corporate tax return at the end of the fiscal year, but there are also important differences. In the health and medical profession, your accountant needs to know about various types of taxes. Goods and services are exempt, taxable, or zero-rated. For example, when dealing with accounting for dentists, pulling out teeth is not taxable, but whitening them is.
It is the intricate understanding of these precise distinctions across various medical disciplines that makes an accounting firm great. We at Versatile Accounting & Tax keep ourselves up to date with all the latest changes across the medical industry, and that gives us an advantage over the rest.
A Balanced Approach From An Accountant In Calgary
Some accountants will take a passive approach to your finances and follow your instructions without discussing them with you. Others will give you the knowledge, but not inform you about what to do next. This is understandable, as all accountants like to please their clients, but it can end up doing more harm than good. Clients sometimes need reminding about particular regulations buried in the tax laws, and what these can mean in their everyday lives.
That’s why Versatile Accounting & Tax takes an active approach, instead. An approach that maximizes how useful we are to you. We engage with you and proactively advise you, rather than simply telling you what the rules are and filing your tax returns. That allows you to make better decisions, and that’s exactly what we like to see our clients doing.
An Accounting Firm That Treats Clients as People, Not Numbers
Another major benefit of choosing us over the competition is that we treat all of our clients as we would want to be treated ourselves. That means we don’t see our clients as profit for our business, we see them as people who have come to us to get their needs met. And for physicians, medical clinics and dental offices, that means understanding the services you provide to your patients, what your circumstances are, and where you’d like to get to in life.
This allows us to give you tailored advice and assistance so that you can move toward your goals without feeling like taxes are holding you back. And because we focus on serving Calgary, that means we can afford to offer the same level of service to all our clients without having to compromise on the excellence of our work.
Accounting In Calgary That Grows With You
It’s also important that your chosen tax accountants have the flexibility to continue serving you as your income, desires, and business activities change. This is because physicians, just like the rest of us, evolve throughout their lives. That means you won’t always need the same accounting services. We make sure to adapt to the needs of our clients and continue to serve them for as long as they need us.
Top-Quality Accounting Services For Physicians And Healthcare Professionals
Now that you’ve had a taste of what separates us from other accountants, here’s what we can offer you:
At Versatile Accounting & Tax, we provide a range of hands-on accounting services, such as
- tax planning and compliance for medical professionals in Calgary, Alberta Canada,
- review engagements,
- corporate tax management,
All these accounting services are important for medical professionals, but there is a crucial difference that makes us unique. We emphasize integrity and honesty in our services so that you can place your trust in us without having to worry. This is because we know what it’s like to be struggling to manage your finances, and how empowering it is to get everything in order.
But we also know that not every medical professional has the time or knowledge to sort it out on their own. That’s why it’s essential we can be relied upon to deliver on our promises. Which in this case, means helping medical professionals overcome difficult situations regarding their corporate finances.
And judging by our testimonials, our clients believe we’re the best accountants in Calgary, and that’s because we know what we need to know, do what we need to do, and always check everything to make sure it’s been completed to the highest possible standards.
If you’re interested in learning more about what Versatile Accounting & Tax can do for you, then feel free to contact us. We’re based in Calgary, with two offices, so if you’ve got a medical practice nearby, then you won’t have to travel far to visit us. Or, if you’d prefer to get in touch over the phone instead, you can call us at either 587-952-5187 or 403-203-2263 to speak directly to one of our team.