Running a one-man-band type of business sounds great on paper, because if you do everything yourself, you don't need to pay anyone. That's the main reason why so many doctors choose that kind of approach when it comes to running their offices.
But ... is this path really the best one to take considering that being a doctor of medicine typically doesn't involve any kind of business training?
Doctors tend to be rather dedicated people, that goes without saying. The training process that takes place before they receive their licenses can be long and tedious, and it takes a substantial amount of willpower to make it that far. Regardless of that, however, understanding medicine is only one aspect of the business that doctors need to know.
Truth be told, it's hard to be an expert in more than one field, and running a successful business typically requires you to either know multiple things, or start outsourcing the tasks you're simply running out of time to do or lack the skills they require. Luckily, hiring someone else to do them for you is the answer to both of these situations.
Expenses don't need to be sky-high, especially if you do your due diligence and search the market to find an employee who has all the needed skills and is willing to share them for a reasonable price. And by hiring someone to take care of the tedious part of your business like bookkeeping, finances, and dealing with insurance companies, you will be able to devote more time to doing the things you love, and your patients will appreciate it as well.
Given the fact that there are only a limited amount of hours in each working day, it's important to manage them wisely. If you're trying to tackle too many things at once, especially those that don't exactly fall under your main field of expertise, how are you going to manage them all? Furthermore, things such as bookkeeping and finances really have little to do with the field of medicine. It's not realistic to expect a doctor to be proficient at both. But by sacrificing just a little bit of monthly profits by hiring an employee who's going to handle it all for you, you're not only gaining additional time for yourself, but also getting a massive stress relief.
Bookkeeping can quickly get very technical, and trying to do it all yourself (and doing it incorrectly as a result) can open you up to several penalties if the inspection decides to visit your medical practice one day. You want to avoid this at all costs, because these kinds of actions against you can quickly end up costing you a lot of money, likely much more than you would have paid for your employees in the entire year.
Doctor's are better off outsourcing elements of the business, like bookkeeping and finances. Not sure where to begin? Call us at Clarke McEwan and we will put you in touch with a qualified tax bookkeeper who knows the ropes.