Midyear Tax Planning Strategies for Individuals
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In addition to my revenue-building service, I offer a range of specialized offerings to physician medical practices, of which a partial list is below. Please feel free to call me at 281-379-5988 to inquire about any of these services.
If required, a compilation or preparation of financial statements is defined as presenting in the form of financial statements information that is the representation of management (owners) without undertaking to express any assurance on the statements.
For physician practices who prepare their own financial statements internally, it is often a good idea to have them independently reviewed by a Reed Tinsley CPA. This review can be conducted on a monthly, quarterly, semi-annual, or annual basis. You must make sure they are receiving accurate, reliable financial information. This also allows for ongoing tax review and related planning.
A physician practice might want or need to prepare a financial forecast for
many reasons:
The difference between a forecast and a projection is that in a forecast, all the assumptions are expected to occur, whereas in a projection at least one assumption is not necessarily expected to occur and may be improbable. In other words, a forecast presents management’s expectations; a projection presents management’s expectations based on a ‘what if’ situation.
There may be a time when a physician needs to have a prepared personal financial statement. Personal financial statements are sometimes needed when obtaining a bank loan, for tax or estate planning, or during the preparation of a personal financial plan.
Diagnostic business planning begins with the evaluation of the overall finances of the medical practice. Particular emphasis should be placed on charges, collections, adjustments, and other write offs. Is the practice growing or are the doctors working harder to maintain the same income level? As a CPA dedicated to physicians and their medical practices, my goal is to minimize your tax burden and make sure there are no year-end tax surprises. My tax services include the following:
Diagnostic business planning begins with the evaluation of the overall finances of the medical
practice. Particular emphasis should be placed on charges, collections, adjustments, and other
write offs. Is the practice growing or are the doctors working harder to maintain the same income
level?
Ongoing review of the practice’s gross collection percentage, net collection percentage, and accounts receivable ratio or days in A/R. Assess whether all these statistics are reasonable for the practice’s particular medical specialty.
Compare each overhead category to the same overhead category from the prior year. Identify and question significant changes. In addition, decide how the practice’s overall overhead can be reduced in the upcoming year.
Every practice needs to know what it costs to render a particular service. These calculations should be prepared at least annually.
Conduct an in-depth analysis of a current aging of the accounts receivable, with emphasis on payer aging’s.
Review all managed care plans to assess their profitability. If the plan’s rates or profitability are not acceptable, assess the potential for renegotiation.
As a top advisor to physicians, I help increase practice profits by delivering hands-on,
expert medical accounting/tax support, practice counsel, and revenue-building strategies.
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