A presentation for AMAQ Starting in Private Practice Friday, 03 July, Paul Copeland

Transcription

1 A presentation for AMAQ Starting in Private Practice Friday, 03 July, 2015 Paul Copeland

2 Disclaimer The information in this presentation should not be used or treated as professional advice and attendees should make their own enquiries and seek professional advice concerning their own personal circumstances before utilising any information provided. Anything positive which flows from the following presentation is a result of the presentation and should be attributed as such. However anything negative or detrimental is in no way my fault. 2

3 Introduction Partner of William Buck Chartered Accountants & Advisors National alliance of firms located throughout Australia and New Zealand Brisbane office located on Queen Street Work with clients all over Queensland including Gold Coast, Sunshine Coast, Far North Queensland etc. We can help with group practices, valuations, setting up, financial strategy, asset protection, tax planning the list goes on. 3

4 Topics for this Morning A personal review of your goals and engaging with your advisors Structures for private practice not one size fits all Tax deductions and record keeping Common Conditions & Treatments 4

5 How can your Advisors assist you with your goals? A good accountant doesn t just provide tax advice, they also provide advice on: - Practice Structuring - Practice Acquisition - Valuations & Sales - Business Planning - Strategic Planning - Superannuation - Budgeting A key service a good advisor offers is access to their network of other advisors who compliment their skills. For example; introductions to lawyers, fit out companies, financiers etc 5

6 What are you looking for from your Advisors Considering your personal and professional goals, provide some feedback on; 1. What do you ultimately want from your private practice, financially, professionally and personally; 2. What information, assistance, services or products would you like from your advisors? 6

7 Starting in Private Practice - Understanding the business and commercial aspects of your practice is just as important as your medical knowledge. - The way you structure your practice will depend on your personal circumstances, consider: - How are you planning to practice? - Trading entities and structures - ABN & GST - Legal Agreements - Finance - Staff PAYG registration, work cover & superannuation - GST & Income Tax 7

8 Financial issues to consider: - Starting out using Sessional Rooms - Let s use the example of Jackson - Jackson is looking to use sessional rooms at Brisbane Private. The hospital agrees to provide assistance during his start up phase. They will help with reception, billing, a consulting suite and they will charge a fee for this. - Jackson is nervous about the level of work he can expect so will remain with QLD Health for around 3 to 4 days a week and only do around 3 to 4 private sessions a week. 8

9 Financial issues to consider: - Starting out using Sessional Rooms Question: Does Jackson need a company or trust? - Setting up a company/trust may be an unnecessary cost at this stage - Potentially some benefit if you claim your car and it is a cheap car - Trading as an individual is more appropriate and much easier in most cases Question: Does Jackson need an ABN? What is an ABN? - Your ABN is a number which identifies you to government departments and other businesses. - If you are operating a business without an ABN, other businesses are required to without 49% of the payments they make to you. - If your income exceeds or is expected to exceed $75,000 in a year, Jackson will be required to register for GST and lodge quarterly Business Activity Statements (BAS) - The BAS is reporting of your GST, PAYGW for employees and income tax instalments 9

10 Financial issues to consider: - Starting out using Sessional Rooms Question: Should I have a specific bank account for my business? - Yes, It is a great idea to separate your business income from personal income - Also consider a business credit card. - Being organised financially makes it much easier to keep track of your tax deductions Question: Do I need a bookkeeper? - We recommend the bookkeeping package Xero - Online, cloud based bookkeeping software with direct feeds from your bank and credit card - Suitable package via WB ranges from $12 to $42 per month. Question: When do I pay tax? 10

11 Trading Structures Private Practice Bella decides to commence private practice. She is going to lease some rooms, have them fitted out, have a computer system and other equipment. She decides to employ her husband as a practice manager as well as having a full time receptionist. 11

12 Specialist Practices Structure Sole Trader Pays Service Fee Service Entity Owns assets Employs staff Patient Fees Pays their personal costs A separate Trust or Trusts to hold Investments 12

13 Common Questions: Once I have a Trading Structures who pay for what?? What does the Doctor Pay? What does the Service Entity Pay? - Service fee to the Service entity - Professional indemnity insurance - Professional subscriptions - Courses, conferences and seminars - Personal mobile phone - Personal internet - Motor Vehicle - Administration assistant (depends) - Personal superannuation (depends) - Staff Wages (including practice manager) - Super Superannuation - Fit out and equipment - Rent on rooms - Stationery and Postage - Advertising - Electricity - Business Telephone - Costs you would not expect to pay if you were renting on a sessional basis 13

14 Planning for your tax hit - Tax is all about the timing. - Amount will vary depending on income and time of year you start work - Tax Holiday offset account - Instalments - Know what is coming up. 14

15 Other Quick Tips Tip 1: As a sole trader you are not covered for workers compensation insurance. Income protection insurance is important. Tip 2: Superannuation contributions may not be deductible if you pay them as a sole trader and you are still working part time for QLD Health Tip 3: If you join a partnership or group, proper legal agreements are essential. Don t skimp on these it will save you in the long run. Tip 4: Know what you are entitled to with finance expert advisors can save you thousands here. 15

16 Common Conditions and Treatments Condition: No idea where I am financially Treatment: - Review the existing accounting/bookkeeping system. Most likely use Xero as your accounting software - Engage with a fee for service financial advisor and have them work with your accountant - Regular meetings and engagement with your advisors - Good stuff costs money cheap stuff is cheap. 16

17 Common Conditions and Treatments Condition I want to buy into a retiring surgeons practice and have no idea what the practice is worth and if I should buy it Treatment: - Depending on the type of practice type consider a valuation - Work out what you want from the older doctor, there wont be that many buyers and then will want something as opposed to nothing; - Introductions to their referrer base is key - Ideally have a transitional period - Contact William Buck or AMAQ for advice (Specialist referral) 17

18 Common Conditions and Treatments Condition: I invested in something dumb and now don t trust anyone. My colleague said this about that so I am going to invest in that Treatment: Take a breath and relax. Get back on the horse and seek out reputable qualified advisors otherwise chances are you will end up in a worse position. Don t ignore something that you know is not right. 18

19 Common Conditions and Treatments Condition: I don t want to pay any tax, my colleague does not pay any tax, why should I pay tax? I hate tax! Treatment: - I like paying tax said no one in the history of the world EVER! - Radical relocation surgery - Suck it up If you make money you have to pay tax. Make sure you don t have to pay any more then you should (legally) but don t chase tax deductions its about wealth creation not tax 19

20 Summary Make a decision today to act or not to act Seek out advisors and consultants to help you use the specialists 20