Serving Today’s Medical Professionals
Real Solutions with Modern Technology in a CPA Firm for Medical Practices
Medical professionals and practices require a CPA attuned to the intricacies of high-earning entities, often accompanied by a significant support team. As highly educated business owners, doctors value their time immensely and deserve a network of equally skilled professionals to support them. Medical practices navigate the complexities of equipment leasing, oversee payroll for a sizable team, and aim to optimize the retirement benefits available to high earners. Additionally, they possess distinct tax planning necessities.
Medical Practices Need…
A Smart CPA Firm.
Doctors, as highly educated professionals, thrive best when collaborating with peers who resonate with their level of expertise. Bette, an MIT graduate, has a network filled with leading research scientists, esteemed medical professionals, and other experts worldwide. You deserve a CPA who aligns with your level of expertise to adeptly handle your financial concerns.
Navigating Financial Options
Retirement and Benefits for High Earners
Choosing the right retirement program can be a tough task for a medical office. It’s important to set up a 401(k) correctly so high earners don’t face limits on their contributions. More advanced retirement plans can lead to payroll issues if not set up right. Every medical practice is unique — differences in the number of doctors compared to staff or having a spouse on the payroll can change the recommendations given.
Medical Equipment Leasing
Staying on Top of Tax Changes
Today’s doctor’s office has specialized equipment with complex leasing needs. From 2020, businesses under Financial Accounting Standards Board (FASB) guidelines must recognize leases on their balance sheets. This can affect loan agreements based on GAAP (Generally Accepted Accounting Principles), not just tax rules. A skilled medical practice CPA will guide you through this, while a tax preparer focuses on the paperwork.
Medical Practice – More Info
Time Sensitivity
We get it – you’re deep in the world of medicine, balancing life-saving tasks and tight schedules! While you’re out there making miracles happen, we promise not to hold you back.
Intelligence
With us, you won’t be handed off to someone on the sidelines. Every high-level conversation happens directly with Bette. With an engineering background from MIT and a Master’s in Accounting, she’s not only on your level – she’s often a step ahead.
We’re Detectives
While medical diagnostics handle health challenges, we move smoothly through the changing tax code. We might not wear lab coats, but our investigations keep your finances in check!
CPA Services for Medical Practices FAQs
What accounting and tax services do you provide for medical practices?
We handle practice bookkeeping and monthly close, physician compensation and partner distributions, payroll and benefits, retirement plan design, tax planning and returns, buy-in/buy-out advisory, multi-state compliance, and KPI dashboards for collections and profitability.
How should a medical practice choose an entity type (LLC, S-Corp, PLLC, PC)?
Choice depends on liability, compensation, payroll taxes, and state rules. Many practices use S-Corp/PC for reasonable salary + distributions, while group practices often use LLC/partnerships for flexible allocations. We model tax impact and coordinate with counsel.
What retirement plans work best for high-earning physicians?
We design 401(k) with safe harbor and new comparability, cash balance/defined benefit, and backdoor Roth strategies. Our plans target high contribution limits, controlled-group rules, nondiscrimination testing, and payroll integration so owners can maximize tax-deferred savings.
How do you optimize physician compensation and partner distributions?
We align wRVUs/collections with base pay, bonuses, and distributions, track overhead by provider, and implement accountable plans for CME, licensure, and mileage. Quarterly projections prevent year-end surprises and under-withholding.
What KPIs should a practice track each month?
Net collections rate, days in A/R, denial rate, first-pass resolution, payer mix, no-show rate, wRVUs per provider, payroll % of collections, and operating margin. We build dashboards and monthly close packages for partners and lenders.
Can you help with revenue cycle management and payer denials?
Yes. We audit charge capture, code usage, and contract variance, identify denial patterns, and tighten front-desk eligibility and pre-auth workflows. Clean claims and faster appeals improve cash flow.
How are equipment purchases and leases handled for taxes and GAAP?
We evaluate Section 179 and bonus depreciation for purchases and apply ASC 842 for leases (right-of-use asset and lease liability). We review loan/lease covenants so GAAP balance-sheet changes don’t trigger banking issues.
What’s the difference between W-2 staff and 1099 contractors in a practice?
Misclassification risks penalties. Clinical personnel under your schedule, tools, and supervision are usually employees. We set compliant onboarding, adjust payroll/withholding, and manage contractor agreements when appropriate.
How do multi-location or telehealth practices handle state tax compliance?
Provider location, patient location, and payroll nexus drive filings. We register for payroll/income taxes, manage city/county taxes where applicable, and align billing rules for telehealth across states.
Are medical practice expenses like CME, licensure, and malpractice insurance deductible?
Yes, when paid by the practice under an accountable plan. We set policies so CME, DEA/state licenses, board fees, uniforms, and malpractice premiums are properly documented and deductible.
Do physician-owners qualify for the 20% QBI deduction?
Specified service trade rules limit QBI at higher incomes, but entity structure, reasonable compensation, retirement contributions, and grouping elections can improve outcomes. We model scenarios before year-end.
Can you help with partner buy-ins, buy-outs, and valuations?
We build valuation models (collections, EBITDA, wRVUs), structure notes and compensation adjustments, and plan tax treatment for goodwill and tangible assets. Clean data rooms streamline lender and legal review.
What about HIPAA when sharing financial data with a CPA?
We use HIPAA-aware workflows, secure portals, and BAAs upon request. PHI minimization, role-based access, and encrypted storage keep financial and limited clinical identifiers protected.
How do we get started with your medical practice CPA services?
Schedule a consult, share prior returns, payroll reports, payer contracts/fee schedules, lease/equipment lists, and a trial balance. We deliver a 90-day cleanup and KPI roadmap with fixed, transparent pricing.
