As a medical business, you may think that your affairs are easy and that you can DIY day to day running or even be a bit brave and complete bookkeeping and BAS.
You might be super brave and think you can even complete your personal income tax return and we know many medical professionals who do.
Many of you with ask the help of an accountant.
But should you trust your financial health on what you know? I would never trust my physical health or wellbeing with Dr Google or what I know. Yes, there is a chance Dr Google will get it right but equally, I doubt if it can tell the difference between a mole and melanoma.
And that is true for financial matters. How do you know if you have claimed everything you should. How confident are you that what you have done is right.
Because I will let you in on a secret.
We see a lot of tax returns prepared by accountants for medical professionals. We see a lot of tax returns completed by medical professionals because they have decided to DIY it. In both cases they are mostly wrong or completed incorrectly.
Why? Well, there are special tax rules that relate to medical professionals and most accountants get them wrong. There are special sections in the tax return for medical professionals and most accountants get them wrong too. Now if accountants are getting them wrong most medical professionals are going to get them wrong.
So that is why you really need a specialist.
But let’s take a look at four of the main reasons you shouldn’t be the one doing your finances.
1. You’re Not a Numbers Person
We’d all like to believe that we’re good at absolutely everything, but the truth is that not everyone is good with numbers. And from experience I can tell you medical professionals are not generally good with numbers.
Nothing personal – it’s just a fact that medical professionals do not like numbers
If you don’t have an affinity for mathematics then doing your taxes and driving your own finances yourself is probably not the best idea.
Even if you’re competent enough at everyday calculations, taxes are a whole different ball game. Calculating your taxes is a very complex process; there’s a reason that chartered accountants must spend so many years in training. And as a professional person yourself you know what I say makes sense.
A mistake on your tax return can cause you to pay the wrong amount of tax and even result in harsh penalties that can seriously threaten your small business. Even if the amounts are right but the return is completed incorrectly you can still get fined for it. It really isn’t worth the risk.
2. It’s a Waste of Your Time
One thing I hear all the time from medical professionals. They want to work less hours.
Taxes and financial management are notoriously time-consuming and as a busy medical professional, your time is a precious resource that you can ill-afford to waste.
After all, the time that you spend doing your taxes, bookkeeping or BAS is time you spend on stuff you like doing. It’s important to sit down and think about how much your time is worth before you squander it all trying to figure out your taxes and bookkeeping. Think of time in the same way as you think of money, and learn to invest it wisely.
3. Tax Laws Change Constantly
One of my biggest grips is that tax laws are constantly changing. That means I spend half my life in webinars and courses learning new tax laws.
Tax laws change all the time, and it can be incredibly difficult to stay on top of all the latest rules and regulations – especially when you already busy.
The chances are you won’t know about all of the latest changes which could lead to you making mistakes or missing out on new opportunities to save money.
It’s an accountant’s job to keep up to date on any changes and then take advantage of these opportunities to save you money, so that you pocket as much of your income as possible.
4. Don’t Trust the Internet
In this day and age, we have information overload. But you only have to see social media to know a lot of it is rubbish.
The DIY approach to any task usually involves several Google searches. The problem is that although the internet is a wonderful resource, it’s full of incorrect or outdated information. As discussed, tax laws and deductions change all the time, so the article you’re reading may no longer be accurate. Furthermore, tax rules are not straightforward so what is relevant to someone else may not be relevant to you.
There is a reason why all articles and webinars state the information given is of a general nature and you should get specific advice.
Summary
The needs of every medical business are different, but if the above issues resonate with you then you should consider hiring a special accountant in the medical space. A great accountant is an investment in the financial health of your business, and will undoubtedly save you a significant amount of time, money and stress in the long run.
