Hiring an accountant can be a significant decision for General Practitioners (GPs) or doctors in the UK. While it is not a legal necessity, employing an accountant offers numerous advantages that can justify the investment. Here are four key benefits of hiring an accountant for a GP or doctor, along with insights into the average costs involved.
Advantages of Hiring an Accountant
1. Expert Financial Management
One of the primary advantages of hiring an accountant is their expertise in financial management. GPs and doctors often have demanding schedules, leaving little time to manage complex financial matters.
Accountants can handle bookkeeping, tax planning, and financial reporting, ensuring that all financial records are accurate and up-to-date. They can also provide insights into the financial health of the practice, helping doctors make informed decisions about investments, expenses, and potential areas for growth.
2. Tax Efficiency and Compliance
Figuring out the UK tax system can be challenging, especially with frequent changes in tax laws and regulations. An accountant who is well-versed in the healthcare sector can ensure that GPs and doctors are compliant with all tax obligations, avoiding penalties and fines.
Additionally, accountants can identify tax-saving opportunities and implement strategies to minimise tax liabilities. This includes advising on allowable expenses, pension contributions, and the optimal way to draw income, ensuring that doctors retain more of their earnings.
3. Time Savings
Managing finances, particularly during tax season, can be incredibly time-consuming. For GPs and doctors, time is a valuable resource that is better spent on patient care and professional development.
By delegating financial tasks to an accountant, doctors can save significant amounts of time and help them meet tax deadlines. This allows them to focus on their core responsibilities without the added stress of financial management, ultimately enhancing their productivity and work-life balance.
4. Financial Planning and Strategy
Accountants provide more than just bookkeeping and tax services; they also offer strategic financial planning. They can assist in budgeting, forecasting, and setting financial goals, ensuring that the practice is on a sustainable financial path. For doctors considering expanding their practice, investing in new equipment, or planning for retirement, an accountant can provide crucial advice and support. This strategic guidance can lead to better financial outcomes and long-term stability for the practice.
Accountants can charged up to £3,000 to GPs for essential accounting services, or you can find accountants that do ad-hoc work at £50-£150 per hour
What is The Average Cost of Hiring an Accountant?
The cost of hiring an accountant in the UK can vary widely based on several factors, including the complexity of the services required, the size of the practice, and the accountant’s level of experience and expertise. On average, GPs and doctors can expect to pay anywhere from £500 to £3,000 per year for basic accounting services. This typically includes bookkeeping, tax returns, and financial statements.
For more comprehensive services, such as strategic financial planning, tax consultancy, and business advisory, the costs can be higher. An accountant for doctors offering these advanced services may charge between £3,000 and £10,000 per year.
It’s also possible to find accountants who charge an hourly rate, which can range from £50 to £150 per hour depending on their expertise and the complexity of the work involved.
While hiring an accountant is not mandatory for GPs and doctors in the UK, the benefits often outweigh the costs. The expertise in financial management, tax efficiency, significant time savings, and strategic financial planning are compelling reasons to consider employing an accountant. These professionals can help ensure that the financial aspects of a medical practice are handled efficiently and effectively, allowing doctors to focus on providing the best possible care to their patients.
Given the potential complexities of managing a medical practice’s finances and the value of professional guidance, many GPs and doctors find that hiring an accountant is a prudent investment. The costs, while variable, are generally justified by the financial and operational benefits gained, making it a wise consideration for any medical professional.
