When as much time as possible needs to be allocated to patient care in the course of a work day, being able to assign the responsibilities for your practice’s accounting to someone else can create great advantages to both you and the patients needing your direct attention.
Rutwind Brar can provide the solutions that free you up from administrative tasks which are not represented as billable hours on your daily ledger.
Some areas where we can best assist, and advice that we can offer includes:
In Canada, a medical practice is well suited to take advantage of the rate incentives available to all businesses – a 13.5% rate on pre-tax corporate income to a maximum of $500,000 per year. For this reason, physicians practicing in Canada are urged to consider incorporation.
When your annual income eclipses your personal living expenses, incorporation can allow considerable savings on the taxes that you pay annually. The difference can be assigned as an investment account within your business. We recommend establishing a dedicated holding corporation which keeps the growing income at arm’s length from the operating costs and expenses that can be involved with a business in operation. Some prefer to use the professional corporation itself to hold their cash reserves, but that can put your money at risk, especially in the field of health care.
Even in situations where your personal or family expenses such as those associated with College-age children seem to deplete your savings, establishing a corporation can still ease your tax burden. Combining the reward of a family trust that is properly established with special purpose or discretionary shares in your business, Rutwind Brar can create a tax situation by which your children declare income at low rates that would have been otherwise taxed in the physician’s hands at the highest rates.
Can you take advantage of creating a fiscal reporting period that is not within a single calendar year? Many physicians are already recognizing the benefit of this strategy to practically manage both their budget and tax requirements. We can help you to set up a system which incorporates budgets and projections that is an ideal fit for medical practices.
Saving For Retirement Using a Holding Company
We are all thinking ahead to retirement and what we need to be doing today to ensure that we can enjoy the goals that we set for ourselves at the conclusion of our careers. Creating a holding corporation and being disciplined in saving can be an effective retirement planning strategy. At Rutwind Brar, we are not money managers with a stake in your investment strategy, so we are better situated to offer impartial, unbiased advice on investment strategies and opportunities to minimize your risk and maximize the benefits. It’s because of this that many clients have entrusted us with their retirement planning.
Where Can Tax Credits Be Found?
Have you developed a medical device or process that has been patented or could be? Are you expanding medical science through research, clinical trials or learned treatises? It’s possible that you qualify for scientific research and development tax credits and don’t even know it. Share your work with us and we can help you to submit a successful claim that creates opportunities for tax credits for you
Exploring Debt Management
Let’s take a serious look at your debt load and determine if it’s best to pay off debt, or assess the advantages of carrying that debt as it relates to tax implications. If you are carrying debt that can be attributed to the operation or growth of your practice, the interest on that debt is tax deductible. Paying off a debt could result in as high as 40% in tax to close the account when that could be borne at the same cost over a ten year span.
Instead of focusing on debt reduction, physicians are in a better position to create savings and build their financial security by building their holding company fund while letting financial commitments such as home mortgages to naturally amortize over the duration of their commitment.
Uncovering Potential Efficiency in Your Daily Operations
Like you, we deal with personnel and office costs as a matter of course in our business. We can help you to identify the best strategies for premises and equipment leases which will save you money in both the short and long term. We invite you to draw upon our expertise in this area to help you get the greatest efficiency out of your practice.
Rutwind Brar has provided our family with outstanding accounting service and expertise. In fact, so much that I strongly recommended Rutwind Brar to my medical group, who are now highly satisfied clients.Dr. Gurjeet S. Dulai