In 2021, nearly 70% of physicians in the US worked at hospitals or corporate entities. Starting a medical practice has far more potential than working for someone else. There’s virtually no limit on what you can make.
However, it’s imperative to understand your business tax obligations. Many medical professionals outsource tax services, but not everyone knows how to find the right professional.
We’ve created a guide that details what to look for when searching for medical practice tax services. Let’s explore the key information you should know.
Experience and Qualifications
Never work with someone inexperienced. While a lack of experience doesn’t guarantee poor results, someone with less experience may be much less likely to help you reach your goals.
The tax resolution professional you hire should have years of industry experience. They should also be properly qualified and have a valid license.
Some medical practice owners make the mistake of cutting corners and hiring unqualified individuals to save money. This puts your entire business at risk.
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A Strong Reputation
Checking past client feedback can help you make better decisions when hiring tax professionals. Look for what people have to say about the company’s professionalism, timeliness, and the results they got. It’s normal to encounter the occasional negative review.
However, you should be wary if most of the company’s recent feedback is negative. This could indicate you won’t receive quality service.
Consider how they respond to criticism. They should never get defensive or aggressive toward negative reviews.
This conveys the company is not willing to resolve issues that clients have. Instead, they should acknowledge the issue and try to resolve it.
High Availability
It should never be difficult to get in touch with your tax professional. You’ll likely have questions about how the process works.
This is especially true if you’re a first-time practice owner. Being left in the dark after hiring someone can be highly frustrating.
The best tax professionals will sit down and discuss your situation with you. Pay attention to how they respond to your questions, as well. They should do their best to explain things in a way you can understand.
Avoid tax professionals who disregard your concerns or give complicated feedback. Their job is to make taxes easier, not more difficult.
Medical Business Expertise
A medical practice isn’t a conventional small business. So, you shouldn’t hire a conventional small business tax service provider.
They should have a deep understanding of how medical practices operate. The more they’ve worked with in the past, the better.
Otherwise, they’re likely to make mistakes that a reputable professional wouldn’t have. For example, they might overlook key tax laws and leave you liable. This could result in legal complications or expensive fees.
There’s also something to be said about the damage it could cause to your reputation. Consider a scenario where a practice owner hires someone who doesn’t understand how practices work.
They make egregious tax errors that cause the facility to get negative local press. Even though the practice owner wasn’t at fault, they could suffer the consequences.
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Proactive Communication
Your tax professional should provide information before you need it. Never hire someone who only tells you key info after you call them.
Medical tax laws are always changing, and it’s crucial to stay updated. Before hiring them, ask how they get in touch with clients when they have important information. A reputable professional will list multiple ways, such as phone calls, texts, and emails.
Trustworthiness
It’s imperative to hire someone trustworthy for your practice’s tax planning, as tax professionals have access to highly sensitive information. Even something as simple as filing taxes on your behalf offers a glimpse at your practice’s inner workings.
For this reason, most practice owners avoid hiring friends and family members. It can be difficult for some people to separate themselves from the knowledge they gain as tax professionals.
Instead, choose a reputable firm that has no relation to your business. This will help you get the results you need.
Fair Pricing
How much do they charge for their accounting services? Not all professionals are created equal, and you’ll find plenty of options on both ends of the price spectrum.
Understand that you often get what you pay for. As previously mentioned, choosing the cheapest services won’t provide the results you need. However, this doesn’t mean you have to choose the most expensive options.
There’s a point of diminishing returns for the money you spend. Somewhere in the middle of the price range can help you reach your goals without overspending. You can then invest the money you save in other areas of your practice.
Bonus Tip: Interview Them Beforehand
Handling taxes as a practice owner is a complicated process. There are many deductions to consider, and you’ll have a much larger cash flow than most small businesses.
Spend time interviewing them so you can assess their expertise. The worst thing you can do is take everything they say at face value. Ask for concrete proof of their past accomplishments.
What’s the largest business they’ve worked with? How would they handle certain scenarios?
The better you prepare for this interview, the more information you’ll get. A reputable professional should have no problem providing the information you ask for.
If they can’t answer your key questions, this is a red flag you shouldn’t ignore. It could indicate that they won’t provide the same level of service they advertise.
Interviewing them also offers insight into how enthusiastic they are about working with you. If they don’t seem interested in serving medical practice businesses, continue your search elsewhere.
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Never Overlook Medical Practice Tax Services
When outsourced correctly, medical practice tax services can significantly ease your burden as a medical practice owner. From here, you can focus on other areas of running your business and take your performance to new heights.
The team at Basta + Croop prides itself in providing premier tax services in Charlotte, North Carolina. We have a deep-rooted commitment to exceeding each of our client’s expectations. Book a call with us today to learn more about how we can help.