Tackling Tax Challenges: A Guide for Canadian Health Clinics
Introduction to Tax Challenges in Healthcare
No matter what kind of health clinic you own, you probably don’t need us to tell you about the challenges that come with it. You want to provide the best care to your patients, but you also want your business to be profitable so you can take that dream vacation and retire one day. Of course, you also want to stay tax-compliant.
In this blog, we help you tackle one of those – healthcare tax challenges.
How do you work through tax complexity?
How do you know what to pay and when?
How do you save money instead of paying more?
Let’s dive in.
You can take control of your taxes right now by downloading this FREE bookkeeping template, which helps you keep accurate records of your transactions, so you’re all set for the next tax season.
Common Tax Issues for Canadian Health Clinics
The health industry has abundant rewards but comes with a host of common tax issues. If you’ve been feeling overwhelmed by these and neglecting to file your taxes on time, it may be comforting to know you’re not alone!
However, staying compliant is essential to your business success, so it’s important to identify these challenges and then find practical solutions. You may be familiar with some of these common tax issues faced by Canadian health professionals:
Not knowing the tax deductions available to you
Not knowing how to calculate how much taxes you owe
Not having time to plan for taxes or file taxes by yourself
Being financially illiterate of common tax terminology
If you can relate, we’ve got strategies to help.
Strategies to Overcome Tax Challenges
Here are some bitesize tax strategies to help you overcome challenges around tax season and say goodbye to tax anxiety once and for all!
Know Your Tax Payment Deadline:
For most individuals, the deadline to pay your personal tax payable is April 30th each year. Speak to a specialist tax accountant who knows the health industry in your state to determine if there are specific deadlines you need to adhere to. Once diarized, you can start budgeting and planning to avoid last-minute stress.
Consider Incorporating:
Incorporating, allows you to only pay personal tax in the year it is taken out of your business, which allows you, as the owner, to distribute income across multiple years to reduce your overall tax liability. It’s a perfectly legal way to reduce your overall tax expenses.
Reduce Taxable Income:
Registered Retirement Savings Plans (RRSPs) bring immediate tax benefits to high-earning medical professionals. This can lead to lower tax payments and higher savings with tax-free growth and withdrawals, giving you a smart way to invest excess income.
Keep Accurate Records:
Tax deductions are available, but you’ll need to keep accurate records of all business-related expenses, including receipts, invoices, and bank statements. Use our FREE bookkeeping template to track your business transactions.
The Role of Specialized Tax Services
Utilize specialized tax services to assist with tax navigation during any stage of your business. Whether you're starting out, expanding, or downsizing, a specialist like Tyagi Group Accounting will be able to give you expert insight into taxes for the health industry specifically. We’ll guide you throughout your business journey, not only during tax filing season, to make sure every business decision has minimal tax implications.
With our specialized tax services, you'll not only stay compliant but also finally gain peace of mind knowing that someone who understands your niche is providing forthcoming, trustworthy tax advice and support.
Securing Your Clinic's Financial Future
So you see, proactive tax management is not so challenging after all when you have an experienced health industry specialist on your side. At Tyagi Group, we see overcoming tax challenges as just one step towards empowering yourself as a successful health clinic owner.
Secure your financial future today and book a discovery call with our team.
