Since 1972 Smith Coffey has been the only firm in WA to specialise in helping Medical Professionals reach their financial goals: from Student, to Hospital/Private Practice, to self-funded retired.
Going into private practice is a dream for many, but running it like a business can be a daunting task.
You will experience significant changes in tax, structure, cashflow and personal spending. Not all accountants understand the nuances of medical practices and the financial management required. We know how to help you manage these changes and more with the least amount of effort on your behalf, allowing you to spend more time actually running your practice.
Set Yourself Up For Success
To successfully run your own private practice, Smith Coffey makes it easier for you:
- We can get your tax return done every year if you follow our process (which is easy for you) without bothering you with trivial queries.
- We'll tell you how much tax you have to pay 18 months in advance.
- We'll make sure you've saved this tax.
- We'll make sure you get a refund every year.
- We can do this because we only work with doctors/dentists – we understand your needs.
- We can get your rate of tax to 15% on super for your spouse/18+ year old dependent.
- We can get your home loan paid off sooner.
- We can show you how much you can spend on your next house.
- We can show you how much you can save.
- We can show you how much you can spend.
- We have experience to know the best structure for your private practice.
We have seen all sorts of practice structures over the years. Should you use a trust or company, partnership, joint venture, associateship, or trade as an individual sole trader. You can even set up in a combination of anyone of these. For example a partnership of trusts. Which one is right for you? Since 1972 we have tracked and recommended the structure most suitable to both the prevailing legislation at the time and your circumstances.
“I Wish I Had Known That Before Starting My Private Practice”
Many of us have heard business owners voice their lessons learned the hard way, so make sure you take the time to speak with other physicians and health professionals who have been there. While you might get lucky and do some things right, few private practitioners really understand what it takes to start and build their practice. At Smith Coffey we understand these pain points from working with our medical and dental clients.
Below are some common issues for you to consider:
To start fresh or take on an existing practice? To rent or buy? Which location to choose? There are a lot of important decisions to make, and your practice location is key. It might be worth renting somewhere first to test the location before committing. Ideally you want a place which is highly visible and heavily trafficked to attract passersby. As to whether to purchase a new or existing practice, there isn’t much difference in securing funding so long as your financial and business plans are in place.
Trust the ebb and flow
Cashflow can tend at times to be seasonal. Be prepared for this inevitable ebb and flow by setting aside a percentage of your monthly earnings to keep you going when things slow down. The ATO is one of your largest creditors, so we can help you understand Tax, when it needs to be paid and ensure you have the cash set aside.
Maintain your records and bills
While you may be your own boss now, you still need to be proactive with the less pleasant and tedious aspects of practice management, such as paying bills and keeping good records. Stay on top of your administrative tasks (especially regarding accounting) to make your life a lot easier.
‘If the expense is Tax deductible if possible pay for it in a way that can allow easy records for your accountant to claim, without having to keep paper or electronic records. There are systems we can introduce you to that make this very easy’.
Monitor your performance
Benchmarking your financial results is an important part of practice management and ensures you make informed decisions. The importance of keeping a budget and reviewing your income and expenses on a regular basis cannot be underestimated. Understanding your financial results and being able to investigate the causes of higher or lower than expected figures will put you squarely on track to succeed. You may need to seek the assistance of your accountant or other growth specialists to assist in reviewing and interpreting results.
Have a trusted referral network
Make sure that you have a network of good medical professionals you can refer to, and that they know they can refer to you too.
Take time for yourself
We don’t want you to get burned out! Make sure you set up the practice management from the outset with systems and processes that work, focus on what you are good at, and help you get back to the things you enjoy.
Get Your Private Practice Dreams On Track
If running your own specialist private practice is your dream, Smith Coffey can help make it a reality. Offering holistic coordinated advice for medical and dental professionals is our specialty; and with over 60 dedicated advisors across tax, accounting and financial planning we aim to add real value to your wealth creation goals.
Book your first appointment today at no cost or obligation – we’d like to get to know you and your aspirations.