Accounting for Medical, Dental & Veterinary Practices
A private practice is two businesses at once: clinical work and a small company with payroll, equipment, and a lease. The tax questions are entity structure, how the owner-practitioner is paid, and how equipment purchases are timed. Blue Sage handles the practice books, the returns, and the personal return alongside them.
What we handle
- Practice bookkeeping and monthly financial statements
- Entity structure and professional corporation considerations
- Owner-practitioner compensation planning
- Equipment purchase timing and depreciation elections
- Associate and partner buy-in structuring
- Retirement plan design for practice owners
Who this is for
Solo and group medical, dental, and veterinary practices, and practitioners considering buying into or out of one.
Equipment is where practices most often leave money on the table. A chair, a scanner, or a surgical suite bought in December versus January can change the tax year the deduction lands in, and the choice between expensing and depreciating is a real decision rather than an automatic one.
Deadlines and rules worth knowing
| Item | What applies |
|---|---|
| Entity | Many states require a professional entity form for licensed practitioners. That interacts with, but does not replace, the tax election. |
| Owner compensation | Where the practice is an S-corporation, a defensible salary must come before distributions |
| Equipment | Timing and election choice determine whether the deduction lands this year or spreads over several |
| Buy-ins | Structure determines whether payments are deductible to the buyer or create basis. Worth settling before signing. |
| Retirement plans | Practices with few employees and high owner income often support plan designs with large owner contributions |
How we work
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Review what exists
We read last year’s return and whatever records you have. Most of what needs fixing is visible quickly.
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Fixed quote in writing
Scope and price before anything starts, counting entities, states, and any cleanup needed.
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File and maintain
Returns prepared and filed, notices answered, and a projection before year end.
Questions
Should my practice be an S-corporation?
Often, once profit is consistent and above roughly $40,000 to $60,000 a year, though many states also require a professional entity form for licensed practitioners. The professional entity question and the tax election question are separate and both need answering u2014 the entity form does not determine how it is taxed.
When should I buy new equipment?
Equipment generally has to be placed in service, not just ordered or paid for, before the year ends to be deducted in that year. If this year's income is unusually high, accelerating a planned purchase can be worthwhile. If next year looks higher, waiting often is. It is a projection question.
Last reviewed 11 September 2026 by Fahadun Nabi, Founder, Blue Sage Tax and Accounting Inc.. General information, not advice for your specific situation.
Related
Talk it through before the deadline, not after.
A free consultation call, no obligation, and a fixed quote if you want to go further.