Starting your own medical practice is a very exciting time. It marks a significant point in your career where you add the title of ‘business owner’ to your already, no doubt, impressive resume. If you’ve been dreaming about this achievement for some time, congratulations — your moment has finally arrived.
In the long run, being in charge of your own practice can help you achieve improved work-life balance and set you up for ongoing financial success. However, it can take significant planning to get to this stage. There are countless decisions that will need to be made, from location to staffing to the purchasing of medical equipment. You will likely face situations in which you have limited experience or few applicable skills. After all, the medical industry is your area of expertise, not financial planning and tax compliance.
Fortunately, Calibre Business Advisory is here to assist. Our team of trained and experienced finance professionals provide a variety of medical accounting services that can help set your practice up for success. We will be with you every step of the way to ensure you have fully considered your financial obligations and goals and are in the best position possible to serve the needs of your patients.
Practical considerations
Perhaps you’ve been planning this career move for many years, and 2022 is presenting as the perfect chance to fulfill a life-long dream. Alternatively, maybe an unforeseen opportunity has recently emerged to open your own practice, one that is too good to pass up. Either way, there are a range of practical matters to consider before any financial decisions are made.
Location: The chosen location of your practice will directly inform your patient base. You should consider everything from demographics to the presence of direct competitors in your area. Opening a practice in a location that is experiencing significant population growth is a proven way of attracting new patients. It’s still possible to launch a new facility in an established area, you may just have to plan for a slower financial start while you find your feet.
Property features: In Australia, stringent guidelines exist that dictate what types of buildings can be deemed medical facilities.These regulations are designed to protect patients and promote high quality health care. With that in mind, before renting or purchasing a property, be sure that it meets the Australian Health Facility Guidelines, which cover everything from accessibility to infection control.
Services: Depending on what type of health practitioner you are, you may be considering opening a practice alongside other medical providers. Allied health facilities, for example, often provide patients with a one-stop spot for multi-disciplinary care. General practitioners, on the other hand, tend to operate with pathology service providers.
Financial and business requirements
Outside of these matters, all of which are quite medical specific, you also need to make broader financial plans. As a business owner, you are now required to ensure your practice meets all ATO taxation obligations. Failure to do so could result in an official audit, a situation no one wants to find themselves in.
However, it’s not all bad news. Expert-led tax planning can actually assist with potential significant tax savings, resulting in wealth creation. You may also be eligible for any number of small business tax offsets and grants. Perhaps you will one day reach such a level of success that you will be in the position of being able to acquire another practice.
And, although at this early stage of proceedings you are unlikely to be thinking about succession planning, having a well thought out business structure can greatly reduce the cost, effort and time when it comes the time to do so.
Calibre Business Advisory’s team of experienced finance professionals is equipped to handle all of these matters and more. Our medical accounting services are comprehensive and can help medical professionals at all stages of running their own practice. In particular, we believe our services are essential to those at the early planning stages of opening their own medical facility.
If you are starting the new year with an exciting business opportunity, contact our professional team today to find out how we can set you up for success.