DIY Bookkeeping Tips For Health Care Professionals

Many new health care professional graduates choose to handle bookkeeping themselves to save money or get a better understanding of their financial landscape.

Obviously, as an accounting firm, we believe your finances would be best managed by our professional bookkeeping services. However, for those who do wish to go the do-it-yourself route, here are some practical tips to help you navigate the bookkeeping process.

Expenses you should claim

Here's a quick rundown of common deductible expenses for health care professionals.

Professional Fees and Memberships

• board application
• registration
• exam fees
• membership fees for organizations
• College of Dental Surgeons of Alberta
• College of Physicians and Surgeons of Alberta

Educational Investments

• board preparation courses
• continuing education programs

*this also includes associated travel expenses like

• flights
• parking
• meals
• vehicle rentals
• accommodations

Tools and Equipment

• loupes (purchased within the last two years)
• stethoscopes
• scrubs
• batteries
• repairs

Work-Related Meals

• event meals
• travel meals

Technology

• cell phone
• internet
• computers
• software
• related accessories that are essential for your practice

Home Office Expenses

If you work from home, you can claim a portion of

• rent
• utilities
• property taxes
• insurance
• mortgage interest

Professional Services

• accounting
• legal fees
• bank charges

Vehicle Expenses

While travel between home and your clinic is considered personal, you can claim a percentage of other-travel vehicle expenses, including

• fuel
• repairs
• insurance
• registration
• loan interest

Gifts for Staff

• holiday celebrations
• service awards
• non-performance related gift cards

Other deductions for consideration

• First Home Savings Account (FHSA) A first home savings account is an excellent way to save for your future home
• Registered Retirement Savings Plan (RRSP) If you are in a high enough tax bracket, these might make sense for you

*There are many deductions that should be considered, and those will differ based on various factors and your unique situation.

Non-deductible but creditable items

Not every expense is deductible, but you do need to make sure that you are claiming them for credit. These include

• tuition and instrument rental fees from January to April
• interest paid on government student loans
• new home purchase

Stay organized

Bookkeeping can feel overwhelming, but staying organized makes it manageable. Use accounting software or spreadsheets to track income and expenses, and keep digital or physical copies of receipts and invoices. Set aside a regular time each week to update your records and ensure that everything is accurate.

When to call in the professionals

Again, as an accounting firm, we feel as though our professional bookkeeping services are the best option to help maximize the benefits for your corporation, and to make life a lot more relaxed, less stressful, and easier for you.

So while DIY bookkeeping is a great starting point, don’t hesitate to consult a professional when needed. An accountant can help with customized tax planning, identifying additional deductions, and ensuring that your bookkeeping and filings comply with all of the CRA regulations.

Ultimately, this will allow you to keep more of your hard-earned income and to focus your limited time on building a successful practice and career instead of worrying about numbers.

Questions?

If you have any questions about this article, need help with bookkeeping, or want to know more about the services we offer for health care professionals, please contact our HCP expert, Brett Ficiur or complete the contact form below.