Accounting and Tax Services for Medical Clinics in Canada

Your clinic treats patients. Your accounting should treat the business with the same level of care. To run a medical clinic, one has to juggle patient care, physician pay, employee expenses, rent, technology, insurance, billing and tax issues, and multiple revenue streams.

By the time that one poor financial move starts to bite you in the pocket, the damage has already been done. Online Accountant offers accounting and tax services for medical clinics, physician-owned practices, multidisciplinary clinics, specialists and expanding medical practices in Canada.

Keeping Pace

Growing Clinics Need Smarter Accounting

Canadian clinics are well past the concept of the doctor and receptionist. Many are run these days by several practitioners, virtual appointments, larger administrative staff, third-party billing, private-pay services, and advanced EMRs.

Clinics can use practice-management software like TELUS Health PS Suite, Med Access, Accuro, Jane, or others to handle appointments, patient records, billing and payments. With over 40,000 Canadian healthcare professionals utilizing TELUS Health's EMR solutions, it's clear how technology plays a pivotal role in today's healthcare practices.

That means another financial challenge: More data, more transactions, and more decisions.

Like other practices nationwide, Western Canadian clinics are required to maintain a healthy cash flow while increasing services and operating at a profit, while simultaneously dealing with staffing costs, physician compensation, facility expenses, among others.

Treatment under tax laws can also be complex. Most health, medical and dental services provided by a licensed physician for medical purposes are GST/HST exempt, in general. But there are other supplies or activities that could be taxable in the clinics, and proper classification and recordkeeping are important.

The Full Picture

Accounting That Understands
How a Medical Clinic Actually Runs

Managing a clinic's finances is not possible if you only consider transactions one by one.

We're considering the big picture: what your clinic makes, where the money goes, what your practitioners are making, what your staff is costing you, what you can deduct and what your next tax bill might look like.

For a single-doctor practice, a family practice big enough to need financial management, a specialist practice, or a multidisciplinary clinic, we can help you transform your financial records into information that is beneficial to your business.

Financial KPIs

Key Medical Clinic KPIs to Watch

Your numbers should be solving business questions, not just filling in a spreadsheet.

We support tracking of the following metrics:

Revenue per practitioner
The percentage of revenue used for practitioner compensation
The expenses for staff and administration.
Clinic operating margin
Revenue by service/practitioner
Accounts receivable and collection time
Appointment utilization and capacity
Monthly cash flow
The proportion of revenue spent on overheads.
Tax liabilities and year-to-date profitability

These numbers can show you where you are losing money, whether you can afford an additional practitioner and how much cash you can withdraw from your business.

Our Services

From Bookkeeping to
Smarter Tax Decisions

The function of medical clinic accounting should be more than just preparing records at the end of the year.

Online Accountant can assist in the following:

Financial reporting and bookkeeping tailored to your clinic.
Corporate and personal tax planning
Recognizing legitimate business deductions or tax-saving opportunities
Tracking and reporting of GST/HST (where applicable)
Payroll, source deductions and remittances
Financial Statements and Taxes at year-end
Planning compensation for the owner and cash withdrawal planning.
The prediction of future tax obligations
Planning and budgeting for cash flow
Financial reporting for multi-practitioner clinics

The bottom line is to minimize financial shocks and to retain more of what your clinic generates.

We can also integrate with the accounting systems already in place for your practice. Online Accountant is a Xero partner and supports QuickBooks, offering clinics the flexibility to keep well-structured, easily accessible financial records.

Xero Partner
QuickBooks Supported
Who This Is For

Who Is Online Accountant Best For?

We are well qualified to provide services to:

Solo and owner-operated medical practices

Both physicians and health care professionals

Start-up clinics setting up their financial arrangements

Clinics that are multidisciplinary and multi-practitioner.

Established practices seeking better tax planning and financial visibility

No matter if you're starting your first clinic or running an existing practice, the right accounting system can make expansion a breeze and advance tax planning a sensible consideration.

Make Your Clinic More Profitable
Not Just More Compliant

You have a lot on your plate without needing more. Don't let your accounting be a mere record of what went on last month. Online Accountant makes your financial information a wealth of information that can be used to understand profitability, prepare for taxes, control overhead, and make better decisions about your clinic's future.

Looking to improve your clinic's numbers? Call Online Accountant now and get your accounting to work for your practice.

Contact Online Accountant
FAQs

FAQs

Accounting For Medical Clinic in canada
Do medical clinics need to charge GST/HST in Canada?
The majority of the medical services from a licensed doctor that are performed for medical purposes are GST/HST exempt. Other products or services provided by a clinic may be taxable; however, it is crucial that they are classified correctly.
Can Online Accountant help with physician tax planning?
Yes. We can help plan around corporate and personal taxes, deductible expenses, owner compensation, cash withdrawals and expected year-end tax liabilities.
Can you handle accounting for a multidisciplinary clinic?
Yes. Reporting can be broken up into various practitioners, various revenue streams, various payroll costs and various overheads at the clinic level, so that owners have insight into where the business truly is making money.
What accounting software can my medical clinic use?
Online Accountant supports Xero and QuickBooks and can help organize financial information along with your practice-management and EMR systems.
When should a medical clinic start tax planning?
Before year-end, so holding off until tax season restricts your options. The consistency of financial reporting enables you to spot deductions, estimate tax liabilities and make informed compensation and spending decisions during the course of the year.
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