Articles
Trap for remuneration packages
Faye Armstrong warns of VAT rule changes for staff benefits
First published in Practice Management, February 2012
Something rarely a top consideration when thinking about staff pay and benefit packages is VAT. However a recent VAT case which Astra Zeneca fought as far as the European Courts, means that VAT now has to be paid over on some parts of staff remuneration packages.
Read more: Trap for remuneration packages
A financial success
AISMA accountants give ten tips to face the challenges of 2012
First published in Practice Management, January 2012
By all accounts 2012 is going to be a difficult year. With GPs facing yet another pay freeze, and practices in England experiencing falling profits, financial efficiency will be the watchword for practice managers in the months ahead. Members of the Association of Independent Specialist Medical Accountants have joined together to offer some timely advice.
Read more: A financial success
Cash flow management
Barry Rigby explains how practices can monitor and manage cash flow
First published in Practice Management, November/December 2011
Downward pressure on practice income in recent years combined with upward pressure on expenses means it is more important than ever for practices to monitor and manage their cash flow.
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Anomalies in practice accounts – Part 3
The final article in a three-part series by Nick Holmes
First published in Practice Management, October 2011
The first two articles examined typical mistakes made in income and expenditure and drawings. This final article brings together a checklist of anomalies to look out for in the balance sheet.
Read more: Anomalies in practice accounts – Part 3
Anomalies in practice accounts – Part 2
In his second article, Nick Holmes focuses on expenditure and drawings
First published in Practice Management, September 2011
Identifying and resolving an irregularity in the practice accounts can be a time consuming process. Using the following checklist, which focuses on practice expenditure and drawings, should help you find mistakes more easily.
Read more: Anomalies in practice accounts – Part 2
Anomalies in practice accounts – Part 1
Nick Holmes explains how to spot them
First published in Practice Management, July/August 2011
Whether you are looking at your practice’s annual accounts, management accounts or undertaking your normal monthly review of practice income and expenditure, you should be able to identify any irregularities without having to do a full audit of every transaction.
Read more: Anomalies in practice accounts: Part 1
Charging for non-NHS work
David Hubbard has advice on how to keep track of your private income
First published in Practice Management, June 2011
All practices will be in receipt of non-NHS income for services such as insurance company reports, cremation fees, private medical examinations and reports to name just a few. To maximise practice profitability it is important these services are correctly charged for, and that payment is collected.
Read more: Charging for non-NHS work
Petty issue?
Natalie Doughty explains how to set up a petty cash system for your practice
First published in Practice Management, May 2011
To manage the cash coming in and going out of your practice efficiently and safely, two systems are required. The first one is to collect fees paid in cash by patients. This needs to be kept in reception and must not be confused with the petty cash. The second is the petty cash system itself, usually maintained by a responsible person with secure, limited access.
Read more: Petty issue?
Practice accounts – Part 3
Lesley Tooley explains the importance of reading and understanding them
First published in Practice Management, April 2011
The first two articles explained the purpose of practice financial accounts and the layout of the profit and loss account and the allocation of net practice income. This final article explains the balance sheet and the partners’ current accounts.
Read more: Practice accounts: Part 3
Practice accounts – Part 2
Lesley Tooley explains the importance of reading and understanding them
First published in Practice Management, March 2011
The profit and loss account is usually one page long and starts with all of the income of the practice, split into categories. National Health Service contract income is shown separately and the other categories will include outside appointments, non-NHS income and reimbursement of expenses. This should comprise the whole of the income of the practice. Offsetting expenditure against income should not occur. The left hand columns will show the current year and the right hand columns will show the previous year. The categories are important as they assist later in calculating tax and in preparing the annual superannuation certificates.
Read more: Practice accounts: Part 2
Practice accounts – Part 1
Lesley Tooley explains the importance of reading and understanding them
First published in Practice Management, February 2011
For the uninitiated, reading and understanding your practice accounts can be daunting. With the full document running to a dozen pages or more, the columns of figures can be a struggle to navigate. Put simply though, the accounts can be broken down into two main documents; the profit and loss account and the balance sheet. The remaining pages merely break down these figures by way of notes.
Read more: Practice accounts: Part 1
Choosing an accountant
Sue Beaton offers advice on how to find the right one for your practice
First published in Practice Management, January 2011.
Investing time in finding the right accountant for your practice should lead to a successful long-term relationship. First of all, create a shortlist of at least three firms. A good way to approach this is by asking colleagues in other practices for recommendations since it is advisable to choose firms for the shortlist with specialist medical accountancy experience and a proven track record.
Read more: Choosing an accountant