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3 Basic Steps to manage Accounting for Private Doctors & Medical Practices
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Cathy LAccounting is the recording of financial transactions plus storing, sorting, retrieving, summarizing, and presenting the information in various reports and analyses. Accounting is also a profession consisting of individuals having the formal education to carry out these tasks.Calculate your expenses;Know what is an expense in your industry; this can include; RentClinic Equipment Operating cotsTravel expensesBy setting up your business expenses accordingly and not interfering them with your personal expenses, you will be able to keep your overall tax amount considerably lower.Tax law says that an expense is allowable for tax if it is incurred ‘wholly and exclusively for the purposes of the trade’. If an expense is incurred for more than one purpose, i.e. business as well as personal use, a deduction for any identifiable proportion of the expense which is incurred ‘wholly and exclusively for the purposes of the trade’ is allowable. We have set out some of the types of expenditure that may be allowable. It should not be seen as an exhaustive list. What is allowable depends on the facts in each case.Organize an adequate Payroll system:When managing your own clinic, it is important to understand the legal requirements of employee taxation. You must register every employee to PAYE through HMRC to collect Income Tax and National Insurance from employment if your employees are paid 113 or more a week. It is also essential to keep payroll records of these employees.Small businesses, including payroll for GP surgeries that do not have an internal facility, will require to set up a system in order to pay workers, keep things organised and running smoothly. Larger companies may prefer to outsource the complete payroll service rather than employ specialist staff.Setting Up Your Business: When first setting up your company, it is important to have an understanding of the different structures this may include as this in the future and throughout your career is going to affect your tax. Here are 3 most popular business structures in the UK: Private Limited Company (Ltd) – This is the most popular to the limited liability, potential tax advantages Liability of the shareholders is limited to their investment. The personal assets of a shareholder are not affected if the company is dissolved.Public Limited Company (PLC)Legal entities in their own right. Opposite from a private limited company, the shares of a PLC can be traded in the public market and this is often used to raise finance.Limited Liability Partnership (LLP)Similar to a traditional partnership and also has limited liability. This structure is profit driven and is generally the most popular choice of law and accountancy firms.We specialise in Accounting for dental practices, doctors, and other private clinics. For any more information or advice to help your business or career visit our site at https://www.medicaccountants.co.uk
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