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These questions will require you to refer to a qualified Accountant, we have tried to provide you with a series of questions that you may find useful to ask.
I am new to Private Practice, how should I choose an Accountant?
Your choice of an Accountant can make a significant difference to the success of your Practice, depending on your needs.
The criteria that you may wish to consider are
- Do I need someone who can just take my end of year figures and process them into a tax return?
- Do I need someone who advise me on trading status (Sole Trader, Limited Company, etc)?
- Do I need someone with specialist Medical knowledge?
- Do I need someone to become part of my team and support my Private Practice?
- Do I need someone who can take all my receipts and make sense of them?
I am new to Private Practice, how should I be set up to trade? My friend says that I should start up a Limited Company?
How you conduct your practice requires expert advice, and the best people to advise you are Accountants, and especially those with Specialist Medical knowledge.
We know of several ways to work in Private Practice, Sole Trader, Limited Company, LLP, and your accountant can advise which suits your practice.
Bear in mind that if you trade as a sole trader, you must register with HMRC within three months of starting or be subject to penalties.
I am switching over to trading as a limited company, have you any good advice for me?
Your accountant will have the best advice, but we do recommend one thing.
Before you open a company bank account, please ask the bank whether they will accept cheques made out to you personally.
In our experience, the name of most limited companies is different to that of the Consultant, and this presents a challenge when you receive a cheque made out to you personally.
There are several reasons why this happens, and it is not always practical to return the cheque to the sender, so you need to ensure that you have a bank account which will accept those cheques.
The easiest way is that your company bank account will accept cheques made out to you personally.
If this is not available, open or set aside a personal account, that is used exclusively for your Private Practice.
My secretary seems to be struggling with the billing & collection, but I do not want to change things, as it may upset. What should I do?
We have taken over from, and worked with a large number of amazing secretaries who were relieved when the billing was taken away.
Secretaries have told us that they struggle because they do not enjoy handling the money side of the practice (ask yourself the same question, would you like to be handling the money side, and deal with patient and insurance company queries?), but more commonly is that your practice has grown, through your and their efforts, and priority is normally given to the clinical side of the practice.
We recommend that you ask your secretary what he or she really thinks about your Billing and Collection. You may be surprised at the answer.
Disclaimer: You are wholly responsible for decisions that you make using information on these pages. HytheHopes cannot be held responsible for the consequences of any decision you make based on information contained within this website.