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ASIC Fee Indexation

ASIC will be increasing some fees based on the Consumer Price Index (CPI) from 1 July 2017.

 

Fee from 1 July 2017

Late payment penalties

Annual review fee for a proprietary company *

$254

Late payment fee applies if not paid within 2 months after review date

Annual review fee for a special purpose company *

$48

Late payment fee applies if not paid within 2 months after review date

Late payment fee for up to 1 month late

 

$78

Late payment fee for more than 1 month late

           

$316

*For further information and advice about fees contact us .

 

9 tips for buying a medical practice

Buying a practice? There's plenty to consider.

Purchasing a medical practice, and in some cases the property it sits upon, is a significant business and investment decision. There is a lot to consider, from the purchase through to how you're going to run it on day one. Seeking out specialist advisors who have the experience to support you is a great first step towards success.

At Medfin, our finance specialists have been helping Australian healthcare professionals purchase, set-up and maintain practices for over 20 years. This experience means we know what you should be thinking about when it comes to your practice purchase, so we've compiled a list of things to consider.

1. The structure is key

We're not talking about checking the bricks are in good shape – but that's also important. In this case, we're referring to the way you structure the purchase of the practice. One portion of the final price will be for the tangible assets like equipment and furniture - ensure the seller has good title to these. The other portion will be for the practice's goodwill which includes intangible assets like its brand and patient lists.

This can be difficult to negotiate, because in some instances you as the purchaser will want the asset portion to be higher for tax reasons, and to secure the best finance rates, while the seller will want the opposite treatment for their own tax related reasons. How you make the purchase could affect how you are taxed later on. From a capital gains perspective, it is common practice to purchase the goodwill portion in the individual practitioner's name and the practice assets in the business name. You should consider consulting your tax and legal advisors.

Whatever direction you take, Medfin has a range of finance solutions with varying repayment options to cater to the way you choose to structure your purchase.

2. Zoning

It's often forgotten about, but you need a council permit to run a practice. This is even the case if you're purchasing an existing practice - just because there is a practice there right now doesn't mean they have been operating with a permit. Also, permits may need to be amended from time to time. So make sure your solicitor checks with your local council.

3. Valuations

There can be a perception that you always need a valuation before buying a practice. Valuations (working out the value of a practice) by an expert valuer can be important but also expensive. Medfin does not always require a valuation, provided your accountant completes due diligence. Once again this is something to discuss with your advisers.

 4. Government grants

There is a lot to think about when purchasing a practice so this means buyers can forget about the variety of grants available to practices in Australia. There are a lot of grant opportunities for general practices and the dental industry. Speak to a Medfin specialist to find out more about the opportunities.

5. Accounting for all costs and cash flows

You should think through all the costs of a practice purchase because there can be a lot. From stamp duty or GST (if it applies), to solicitor fees and staff costs. It's also vital to assess the practice's existing cash flow (if relevant) because the last thing you want to do is take ownership, not anticipating unexpected outlays for things like equipment, building infrastructure etc.

6. Thoroughly discussing the transition process

There are many things that need to be negotiated in a purchase and the transition. Putting together an agreement is a complex matter and often initiated by the seller's solicitor. Some things that may need to be considered include a contract of sale, when and how money changes hands, whether there is a lease, if there is an associate or partnership agreement, and more.

Also consider whether your contract of sale should include a non-compete or restraint of trade clause. These are designed to ensure the purchaser gets the benefit of the goodwill they've paid for. For example, you don't want the seller to go and open a new practice down the road the week after the sale! Your legal advisor will be able to assist you with this.

7. Staffing

If you are purchasing an existing practice , you may have the option of taking over the existing staff contracts. This can be beneficial from a patient retention perspective, however it's important to assess the existing staff abilities and liabilities such as annual leave, sick leave and long service leave (and then arrange for these liabilities to adjusted at settlement).

8. Negotiating terms

Negotiating an agreement is a complex matter and often initiated by the seller's solicitor. Some things that may need to be covered include a contract of sale, agreement on when and how money changes hands, if there is a lease and negotiating the transfer to you or even a totally new one, if there is a non-compete clause and more. Medfin recommends you to work with your own independent legal advisor.

9. Risk insurance cover

Many new business owners don't consider this initially, but especially if you're buying in conjunction with other people/partners, it's important to set up insurance cover right from the beginning. It's worthwhile looking into how you will mitigate your risks through things such as business insurance, buy/sell agreements and arrangements for partner incapacitation. There is little more destructive to a business that dealing with a grieving relative who is involving emotions with the smooth operation of a practice.

To discuss the finance options when it comes to purchasing healthcare equipment talk to us today on 1300 361 122 or request a quote or request a call-back.

Important Note:

Any advice in this article has been prepared without taking into account your objectives, financial situation and needs. Before acting on this advice, you should consider its appropriateness to you and seek independent professional advice. Medfin Australia Pty Ltd ABN 89 070 811 148, Australian Credit Licence 391697 (Medfin). For Personal Loans, Home and Residential investment loans for individuals, Medfin is a credit provider, as agent for National Australia Bank Limited ABN 12 004 044 937, AFSL and Australian Credit Licence Number 230686 (NAB). Medfin is a wholly owned subsidiary of NAB and part of the NAB Health specialist business.

 

 

Virtual CFO Services for Businesses and Professional Practices


The-changing-role-of-the-CFO-blog

 Virtual CFO Services - The role of the Chief Financial Officer (CFO) is about to change.

If you want to take your business to the next level of financial control and profitability, you need a Chief Financial Officer (CFO). A CFO is a financial coach and mentor who can help a business grow and stay on track with your finances. In the corporate world, full-time CFO's can be very expensive. A virtual CFO service can provide these services for a fraction of the cost of otherwise having to employ a full time CFO in your business. https://lnkd.in/bE2yfXR

From our clients perspective we encourage businesses to embrace the changes in technology and allow us to be more involved in their do to day business activities and decision making processes. As your accountant we can be called in online to look over the latest up to date  figures and then discuss with the business owner what those numbers mean and how they relate to the current business decisions and direction that needs to be taken. As accountants we have a vast array of knowledge from helping many businesses with similar issues over a number of years so  rather than try and reinvent the wheel technology allows you easy access to these resources far more economically and efficiently than before. To be able to dial in to real time information and discuss the consequences and what they mean in real time is a very powerful process once only available to the big end of town. These types of services are now available for all business to implement into their day to day operations for a fraction of the cost of what a full time CFO would normally cost.

In the following article MYOB review the technology advances and what they mean to the traditional role of the CFO as follows ......

There's no crystal ball in business. But if the rise in mobile and cloud usage is anything to go by, you can count on one thing: the role of the CFO is about to change.

Are you prepared?

Over the past hundred or so years, we've has seen such an amazing amount of innovation that it's only natural to wonder what the future holds.

But today's technological advances actually offer us a glimpse of that future. Mobile devices are fast becoming the norm for employees rather than a desktop computer. People are now actively pursuing lives with greater connectedness and mobility across multiple screens. As business leaders this requires a shift in our thinking.

We now need to recognise workplaces as flexible entities and accept that office locations may soon become a thing of the past, as more employees unchain themselves from the desktop.

Add the fact that working in cloud has made it much easier to do business on a global scale, and it's clear to see that we're entering the era of hyper connectivity.

Yes, doing business in this always on, always connected world will present certain challenges, but the many new opportunities on offer are undoubtedly exciting.

Be future ready

Across both SMEs and bigger business, the cloud continues to break down our old notions of capability across business sectors.

One thing is for certain, if you want to be part of this future, you need to act now.

According to Adrian Wong, MYOB Enterprise Solutions Product Manager, businesses can get ready by enabling and embracing an 'always-on workforce'.

"At MYOB we're definitely seeing a growing demand for a company's employees to have access to any system – anywhere, anytime," says Wong.

"Generationally more millennials are coming into the workforce, and they are used to the 24/7 connected world just like consumers," he continues. "Operationally, the challenge for the CFO is how to get control over their business processes, as the number of people connecting to these critical systems expands."

What you do today will define tomorrow

Being tied down with the day-to-day running of a business is the number one reason CFOs feel that they are not 'future ready'.

So what exactly is 'future ready'? Simply put, it's the capacity to be agile. To be aware, to be predictive, to be ready to adapt to new and emerging challenges, to implement tech innovations, and to spot trends and changes in business, population, and social environment.

For John Moss, MYOB Chief Strategy Officer, one way the CFO can be 'future-ready' is to begin reviewing current processes.

"Every business needs to have a good handle on their finances, and how the economics of their business work in order to take advantage of opportunities, and respond to challenges," says Moss. "To be set for the future, the CFO should consider implementing an online system with mobility options, a powerful financial engine, plus virtual dashboards that provide insights behind the financial detail. It's about taking decision-making to the next level."

Adrian Wong agrees.

"Increasing automation through your software suite can change the finance role, and the role of your finance team, for the better. In the old world, a finance department would act as the gatekeepers of transaction processing, reviewing and approving them, and enforcing policy and process.

"With an online system, a sales rep can submit an order on their smartphone in real time, rather than doing things manually with the finance team," says Wong.

"Of course, the CFO will still need to consider how they manage policy and process effectively and how to keep control of the transaction flow," continues Wong. "Rather than chasing paper, automation gives staff freedom to deliver value that leads to business growth."

And if you're set on future-proofing your business that's what it's all about, isn't it?

To integrate an affordable CFO service into your business today call John Clarke on 07 54754300 or email us on info@clarkemcewan.com.au

 


Contact Clarke McEwan