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Dr Nora
Dr Nora

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 Consultations in all aspects of medicine including
Facial Cosmetics, anti-wrinkle, dermal and lip fillers
Family Planning, sexual health, coil and implant insertions
Minor surgery and skin
Book Appointment

Posts tagged “accounts”

Taxes for New GPs | Accounting 101

In this video I share the notes from my first meeting with my accountant. Covering important questions I had but couldn’t find concrete answers for them online. If you have any questions feel free to ask in the comments section below.

Please note, this is based on my personal circumstances, and you should always seek professional guidance.

RELATED

Part 1: https://youtu.be/F9ntbi8A0eM

TOPICS

- Is a GP always classified as PSI (Personal Services Income) or can they be PSB (Personal Services Business)?

Yes, a GP can be a PSB, depending on the answers given to the personal services income tool: https://www.ato.gov.au/Calculators-and-tools/Personal-services-income-tool/?PSBDcontent

- Which expenses can you claim from before you set up your ABN (Australian Business Number)?

You can’t claim your VISA 457 expenses, but you can claim your AHPRA registration expenses.

- What expenses can you claim back on your car?

You can claim 100% of your GST on purchase of your car (note: my car cost less than the Luxury car threshold, luxury cars may have different rules).

You need to keep a log book for 12 weeks usage of the car, recording the start milage of the car and every work related trip (eg. training events, graduation events, home visits).

However: You cannot claim miles for drives to your regular place of work.

- Can you claim marketing expenses?

Yes.

- Can you work with your spouse on projects?

If you’re PSI classified you cannot hire your spouse to do secretarial work. But if your spouse is skilled in other fields, eg. IT/Accounting/Legal/Marketing, you can hire your spouse. However, your spouse should treat the work as a professional business and work at least 20% with other clients.

- What expenses can you claim for home office use?

You can determine your home office usage usually by measuring the work space area in your home vs the total area of your home.

- How detailed do you need to track your billings, is your pay invoice good enough?

The more data the better, but generally if your practice invoice provides you with the total billed, and the hours worked, and the GST charged, this should be good enough.

- How much of your Super payments can be tax deductible?

As a sole trader, making super payments is optional, you can claim 100% of your super payments, up to the threshold amount, even if your Super includes insurance. Note: please check the terms and conditions of your Super’s insurance, as some provides require a monthly transfer.

- Join bank accounts? Do they cause extra admin work?

No, the tax returns are mainly for business earnings and expenses, not personal.

- What are your fees, are you fixed fee or per hour?

My accountant which I highly recommend charge a fixed fee. Their fees vary depending on how much work you do to prepare your accountants. For me, as I had my books prepared and my TFN/ABN set up, they charge me $440 for the annual return and $220 for the quarterly GST.

- My book keeping method

https://drnora.com/post/163076590546/book-keeping-for-new-gps-accounts-template

- Benefits of using an accountant

By having your accounts professionally prepared, you reduce the risk of an audit, you can pay your fees at a later date and you get extra time to file your returns. Your Accounting fees are also tax deductible. By using a Chartered Accountant and Advisor, you also get extra benefits such as general business and financial investment advice, you traditionally wouldn’t get by doing it yourself.

- More

If you own foreign property or investments worth more than $50k, they should be declared.

Bookkeeping & Accounts for New GPs

As a new Australian GP from the UK, the month of July officially means its end of the financial year, and time to get your accounting socks on to file your quarterly GST Business activity statement, and end of year filings.

In this post I’d like to share with you my method of book/record keeping.

First I have a cloud synchronized shared folder, you can set one up using Google Drive or Dropbox.

Every business related expense I have (including the ones I’m not sure about), I take photographs of and place in a Expenses Todo folder.

Every invoice I get from my practice, I store in another Income Todo folder.

I tried using apps such as Office Lens and Google Lens to take perfect scans of my receipts, but in the end I found that just taking a snap at a good enough angle is easiest to do.

If you’re using a cloud based service such as Google Drive, Dropbox, or Microsoft OneDrive, their apps can automatically sync photographs taken on your phone to your shared folder. Every now and then (usually once a month) I audit my photographs and move any expenses receipt into the Expenses Todo folder.

Every couple of months or on request, I log all my invoices and receipts onto a Spreadsheet. I find that Google Docs is easiest to use as my spreadsheets can be accessed from anywhere and can be exported to formats which are compatible with other apps.

Once my book keeping is done, I run all my expenses past my accountant who validates any expenses I am unsure about.

My spreadsheet is broken into multiple pages, and I use a seperate spreadsheet for each return.
Eg. 2015-2016.xls

The first page of my spreadsheet consists of the income breakdown, how much I charged, how much my practice charged me, and the GSTs of these.

The second page of my spreadsheet consists of $AUD expenses made during the period. Noting, the total expense, how much of that expense was GST, how much it was stamp duty, and which category does the expense belong to. This helps myself and my accountant figure out how much of the expense is to be claimed.

For example, my car related expenses are worked out using the car log book method, which means only the work related usage % of the car calculated, can be used from the full expense.

For the car log book, I used the official myATO app’s personal deductions section to log my work related journeys (note: excluding any trips to my regular place of work) for a period of 12 weeks. This way I was able at the end of the period to determine my work related percentage use of the car, and use this for car related expense calculations.

Any questions, feel free to ask :)