What Tax and Accounting Services Do Doctors Need?
- johnry8
- Sep 2
- 2 min read
Many medical professionals underestimate the complexity of their financial situation. Whether you're a general practitioner, a surgeon, or a specialist running your own clinic, your income structure, deductions, and liabilities are often more complicated than the average person's.
Failing to manage taxes properly can lead to:
Overpaid taxes, reducing your wealth-building potential
Missed deductions, like work-related education, home offices, or equipment
Compliance risks, especially with GST, PAYG, and superannuation
Cash flow issues, due to irregular income or improper budgeting
Doctors who don't receive specialised accounting guidance often leave money on the table or risk costly audits. Smart tax planning and financial strategy help you stay compliant and grow your wealth with confidence.
1. Tax Planning and Preparation
Doctors typically earn high incomes and that means higher tax liability. The right accountant will:
Structure your income efficiently (e.g. salary vs. dividends if operating via a company or trust)
Maximise deductions, including continuing education, subscriptions, equipment, uniforms, and travel for conferences
Assist with income splitting, which may include paying a spouse for administrative work or distributing income through a family trust (where appropriate and legal)
Manage quarterly PAYG instalments to avoid unexpected tax bills
2. Business Structure and Compliance Support
If you operate your own clinic or work as a contractor, choosing the right business structure is critical. An experienced accountant can help with:
Choosing between sole trader, company, partnership, or trust
Setting up ABNs, GST registration, and BAS lodgements
Ensuring superannuation is correctly managed for employees or yourself
Keeping you compliant with ATO regulations
Best Practice: Review your structure annually as your income, team size, or investment strategy evolves.
3. Bookkeeping and Financial Reporting
Busy doctors often struggle to keep up with receipts, invoices, and tracking expenses especially when juggling multiple income sources or business expenses.
Your accountant or bookkeeper can:
Maintain accurate profit and loss statements
Track and categorise expenses automatically
Use cloud accounting software (like Xero or MYOB) to stay on top of your numbers in real time
Provide regular cash flow and tax forecasts
Don’t: Wait until the end of the year to sort your paperwork.
4. Superannuation and Retirement Planning
Doctors often earn too much to rely solely on compulsory employer super contributions. You need to:
Maximise concessional and non-concessional contributions
Set up a Self-Managed Super Fund (SMSF) if it aligns with your wealth strategy
Plan for retirement with a tailored financial strategy
Insight: Strategic super contributions can significantly reduce your current tax while growing your future nest egg.
5. Investment and Asset Protection
With a high income, protecting your assets and planning for long-term wealth becomes essential. Services include:
Tax-effective investment structuring (property, shares, business interests)
Setting up family trusts for income distribution and asset protection
Reviewing insurance policies, including income protection and liability cover
Do: Work with a professional who understands both tax law and medical professionals’ risk profiles.
Ready to simplify your finances, maximise your deductions, and take control of your tax strategy?