While it feels like the year has just begun, we’re already into the 4th quarter which means it’s time to start thinking about taxes. No business owner wants to think about dealing with the IRS, but unfortunately it’s inevitable and something that as a medical practice you have to deal with or else risk getting into serious trouble. While our team at Outsource Receivables can help you to get a better handle on your profitability, we thought it would be a good idea to put together a few tax tips as we get closer to the end of the year.
Tax Tips for Medical Practice Owners & Managers
Below are just a few steps you can take now to ensure that come April 15th, your life doesn’t unravel because you weren’t properly prepared to file your taxes.
- Start Gathering Documents Now – Even though we’re a long way away from April, it can never hurt to be prepared. Start gathering business receipts and other important documentation that you will need to hand over to your accountant come tax time. One easy way to keep your tax receipts and documents organized is to have a folder for each month of the year so that you can file your receipts by month as opposed to shoving everything into one file that you then have to comb through at the end of the year for your accountant.
- Track Your Receivables – Regardless of the time of year, it’s always a good idea to have a strong understanding of any unpaid receivables. This way you can ensure that you’re not being taxed for services that may have been rendered, but were never actually paid for.
- Partner With a Medical Billing Company – By partnering with a medical billing company like Outsource Receivables you can ensure that any unpaid accounts are handled systematically, which in turn can boost profitability for your entire company. This way you’re not spending precious time chasing down bad debts and instead are focusing on growing your practice.
- Ensure You’re Claiming all of the Applicable Work Related Expenses – Depending on how your practice is structured, you may have work related expenses that are not reimbursable by your medical practice. This could include work uniforms and shoes, for instance. Other deductions that could apply to you include:
- Any license renewal fees, professional dues, or union fees
- Subscriptions to medical journals, and other industry related magazines
- Malpractice and professional liability insurance
- Specialized equipment that could include handheld devices, stethoscopes and other equipment used in the medical arena.
- Mileage between office locations
Keep in mind that all of these tax tips should be run by your accountant to ensure that they apply in your local area. Should you have any questions about how outsourcing your medical billing could help to benefit your practice come tax time, feel free to reach out to our team today by phone at 866-585-2800. We have offices in both Minneapolis and Chicago and have been helping practices with their medical billing needs since 1998.