Although we encourage doctors to review their business operations regularly, the year end is a good time to re-evaluate things. With that in mind, here are some key areas to review before the new year.
With the caveat that you should always confer with your accountant for advice on the timing of any major purchase before a possible practice transition, the Section 179 Deduction remains at $500,000 for 2017. In order to take advantage of the deduction on your 2017 taxes, the equipment and/or software must be in place by midnight, December 31, 2017. If you’re considering investing in new equipment or technology, the next few weeks may be an excellent time to do it. In addition to the potential tax savings, financing is still readily available and at low rates. Contact our team at 800-853-9493 for more information.
The year-end in many practices means annual performance reviews with your staff. Oftentimes, this is an exercise that is tied to bonuses and pay modifications. While there are many ways of compensating and giving bonuses to team members, sound advice is to maintain a compensation model that aligns with your personal and professional goals. Compensation should be competitive, based on performance, and most of all, the practice must be able to afford it.
While time is running out for a practice transition in 2017, the market remains robust in nearly every part of the country. If you’re considering an exit in the short term, now is an excellent time to refine your plan, starting with a valuation of your practice. If you’re considering a ten year timeline or pondering a partnership/multi-owner doctor situation, it would benefit you to spend some time planning.
Indicators point to another strong economic year in 2018 with more pro-business legislation to come. Of course, as we do at the end of every year, we encourage you to review all of your office systems, from your fee schedule to your clinical operations, to identify opportunities to improve your profitability and efficiency.
We know that 2017 has been a busy year and hope that you were productive and profitable. We are available to assist you with a broad range of practice related transition plans! We wish you, your family, and team the very best through the holidays and look forward to working with you in the coming months.