28 Oct Physician Accounting Services: The Money Taboo
Physician Accounting Services have comprised a quiet specialty here at Gavrilov & Co for years. We have been very quiet about one sector we have always served. And that is the Physician Accounting Services for medical professionals. This includes the medical office accounting and personal accounting services for doctors. From bookkeeping in medical offices to the intricacies of healthcare accounting, we help you with quiet confidentiality. We excel at helping medical professionals succeed financially.
You see, we are well known for our accounting, bookkeeping and tax specialties. Few do not realize our name as accountants and tax specialists in the hospitality industry. Likewise, the spa industry and the real estate industry have long appreciated our tax expertise and bookkeeping services. Now we are breaking the taboo against talking about doctors and money management.
Defeating the Stereotype of Doctors and Dollars: Physician Accounting Services for Success
After all, devising accounting methods for medical practices falls into our area of expertise as one of NYC’s best small business accounting services. Gavrilov & Co is dedicated to helping defeat the stereotype of doctors who do not know how to manage their money. You see, we know money management is a taboo subject among doctors. Here are a few other taboo things we know about our medical clients:
- Firstly, we know you did not choose your profession for money. We are grateful for your humanitarian choice, for your compassion, for your dedication to humanity and the medical arts.
- We know you don’t like to talk about money, and you like advice about it even less. But it’s time to put aside high minded ideals for a little practical bookkeeping, accounting and taxation advice.
- Our Physician Accounting Services are just as confidential, compassionate and meticulous as the medical services of the finest physicians.
- Finally, survival in your retirement years depends on your financial management and strategy now.
Breaking the Money Talk Taboo for Medical Professionals
This year we decided to break the money taboo. Thus you have recently seen our specific blogs full of financial tips for medical practitioners. And we hope you take the time to visit the website page we have recently created just for medical professionals. We’re breaking the taboo, and we hope you will too!
Once we can have a conversation, we can show you how you can attain a very comfortable lifestyle if you apply a little effort “to generate income.” Experts have revealed, “Easy money does not exist. It does not matter if you are an entrepreneur, lawyer, doctor, or TV personality, you still have to apply effort to generate income. The days of doctors opening up a practice and expecting millions of dollars rolling into your bank are over.”
Three Secrets from Accounting Services Conversations
Therefore, in the text below, find the first three secrets generally revealed in a new conversation with physicians and healthcare professionals who want to take control of their financial lives.
The First Secret of a Physician Financial Services Conversation: Wealthy Peers can be Distractions from Your Goals
We often must remind medical professionals to avoid comparing themselves with their peers. Perhaps the other medical professionals in your circle own extra cars, all 2020 models. Likewise, they might own yachts and gorgeous vacation homes. However, remember, there are a lot of stories behind the apparent wealth of your fellow physicians.
We remind you they might have “maxed out their credit lines to buy rent space at the dock for the boat that they use twice a year.” So this first secret pf your financial services conversation is simple: Do not fall victim to the old keeping-up-with-the-Joneses routine.
As you’ll see later in this blog, avoiding consumer debt is critical to a strong financial plan. Perhaps your peer with a fancy lifestyle is married to a spouse who is financially independent. We will help you establish your own financial goals. Soon your practice will grow. And then you will take pride in your new financial intelligence.
Secret 2 from a Physician Financial Services Conversation: Building Your Practice
It’s a cruel fact of life that, even if your physician’s salary is $300,000 a year, it could take several years to live at your dream level of luxury. Let’s look at the math:
- You take home 55% of this salary.
- Then, you save 50% annually.
- Five years later, you still only have $412,500.
- Good investment helps. But, beware. You could end up with less than you started with.
- Once again, we have to remind you that you must not spend everything you make. You must lock some of your money into retirement accounts. We will show you how. Not all of that is going to be disposable income if they are locked up in retirement accounts.
Focus on growing your practice, not your debt. Then you are ready for the next secret.
Secret 3 from a Financial Services Conversation: We’ll Help You Think Like An Entrepreneur
Experts tell medical professionals, “Being employed as a doctor will allow you to have a comfortable lifestyle. If you want more than that, you will have to think BIG. The $5 million house with a 7 car garage in the “rich neighborhood” of town is probably not going to be owned by a doctor.” At least it won’t be owned by a practicing doctor who does not have multiple, alternative streams of income. So let’s look at those multiple possibilities. Gavrilov & Co has the physician accounting services that can help you explore your options.
Part of this Secret: Two Types of Income
First: On the one hand, you will have a Passive income. Investopedia gives us an excellent definition:
“Passive income is earnings derived from a rental property, limited partnership or another enterprise in which a person is not actively involved.”
Passive also refers to money that works for you while you sleep. You had to invest time and energy in it at first, but now it adds to your net worth. It could be:
- referral networks,
- and endorsement fees.
Second: On the other hand, you might be able to create active income from sources other than your job as a physician.
Again, our friends at Investopedia define this type of income as “Active income. It refers to income received from performing a service such as wages, tips, salaries, commissions, and income from businesses in which there is material participation.”
Perhaps you earn extra income in Real estate, REITs, or professional speaking engagements. We know a doctor who is also an accomplished wine tasting judge, and another one who owns an art gallery. The point is, as a physician, you can still generate income through money-making hobbies. Additionally, the more streams of income you have, add security and stability to your net worth.
Terrific Take-Aways from Your Physician Accounting Services Conversation
Any high-income generator such as a physician must learn asset preservation. We can help you make a sensible plan to get out of debt. You have the ability to pay off those medical school loans. Do it before you invest in those luxuries you crave.
The corollary of this rule is to avoid making new debts.
- Pay of credit cards every month.
- Avoid those big-ticket temptations.
- If you are not sure you are going to stay at that first position you take, long term, then do not buy a house.
Within our consultations at Gavrilov & Co, you can find ways to keep track of investments, spending, and income, both for your personal and business expenses. You can monitor your money and categorize your personal and business expenses.
The above are just the first three secrets or talking points in a physician accounting services conversation. We would go on to create another conversation about your tax situation as well as your investment portfolio.
With a little effort and some financial education, you can build substantial wealth, and still, pursue your calling as a physician or healthcare professional—both today and when you reach retirement age. We’re here to help you find the financial security to be the best healer you can be. That’s the mission of the Gavrilov & Co physician accounting services experts. The very first step, before the first financial step, is to break the taboo, doctor. Let’s talk about your money.