Why choose Elan Consulting to keep the accounting of your medical practice or dental office?
Medicine and dentistry, two of the most respected professions in Bulgaria and around the world, require not only professionalism in clinical practice, but also attention to the financial side of running a private practice. Doctors and dentists who choose to run their own practices face numerous challenges related to accounting and taxation. In this context, professional accounting services are not only a convenience, but also a necessity for the effective management of financial processes and for compliance with increasingly complex tax legislation. Elan Consulting understands the uniqueness and specificity of each medical practice, offering customized accounting solutions that meet the individual needs of each client. Our goal is to provide services that not only meet current legal requirements, but also support the development and financial stability of your practice. We realize that success in the medical sector depends not only on the quality of health services provided, but also on skillful management of finances.
In connection with the peculiarities of accounting in medical practices, Elan Consulting offers a comprehensive service, which includes accounting of income and expenses, in accordance with the specifics of the activity and the applicable legal regimes. Our team of qualified accountants is familiar with the latest changes in legislation, which allows us to provide accurate and up-to-date accounting services, fully tailored to the needs of your practice. It is of great importance to us to provide our clients with peace of mind and confidence that their financial and tax commitments are in reliable hands. That is why at Elan Consulting we place emphasis on transparency and accountability in every one of our actions. We value the trust our clients place in us and strive to justify it with high-quality accounting services that make it easy to manage their business.
One of the aspects in which Elan Consulting excels is our ability to offer advice and solutions that are aimed at maximizing profits and optimizing costs. Our accountants work diligently to identify areas where financial efficiency can be achieved while ensuring that all financial transactions are accurate and in accordance with the law. In addition to traditional accounting services, Elan Consulting also offers the preparation of reports for the Health Fund, which is especially important for medical practices. This service was created to make it easier for doctors and dentists to fulfill their regulatory duties and reduce the administrative burden associated with accounting. This allows our clients to focus on their core business — providing quality healthcare services.
Our experience in medical and dental practice accounting allows us to provide specialized and effective solutions that meet the unique requirements of this sector. We understand that our clients' time and resources are valuable, and strive to offer services that optimize their workflow while reducing the risk of financial errors and discrepancies. Our commitment to high standards and professional ethics makes us a preferred partner for medical professionals. At Elan Consulting we understand the importance of maintaining the confidentiality and security of our clients' personal and financial data, which is crucial in the world of healthcare.
In addition to accounting services, our clients can also benefit from extensive tax advice. This includes assistance with tax planning, advice on tax breaks and credits, as well as preparing and filing tax returns. Our goal is to provide our clients with full support in all aspects of their financial management.
Accounting of a doctor's office, clinic or freelance doctor - what is different?
In the world of medical services, professional accounting services are a key factor in the successful management of a medical practice or medical institution. The accounting house “Elan Consulting” offers a complete set of accounting services that cover all types of medical practices - from family and general practitioners, through dentists and specialist doctors, to private doctors and managers of medical centers or clinics.
Important! According to the VAT, doctors and medical practicesbenefit from a special regime and therefore do not charge VATbecause they fall under the law as exempt supplies.
Bulgarian legislation places a number of specific requirements for medical professionals in the field of accounting and financial reporting. The Law on Health, the Law on VAT and the Law on Corporate Income Taxation are only part of the regulatory acts that directly affect the financial activities of doctor's offices and medical practices. In this context, the correct interpretation and application of legal provisions is essential to optimise tax costs and to ensure compliance with legal requirements.
The accounting firm Elan Consulting offers customized accounting solutions that meet the unique needs and requirements of each medical practice. Our goal is to ensure full financial transparency and help medical professionals focus on what matters most to them — delivering high-quality medical services to their patients.
At the heart of the accounting of doctors, dentists and dentists lies the specifics of their profession, which requires a unique approach to financial management and reporting. Medical practice is not only a profession, but also a business that requires careful management of income, expenses and tax liabilities. Understanding these aspects is critical for the successful and sustainable development of medical practice. The importance of correct accounting in the medical field becomes especially relevant in the light of constantly changing legislation and diverse requirements for taxation and insurance. Dentists and doctors are faced with the task of balancing the provision of quality medical services and the management of an effective and legal financial structure.
In addition to regulatory requirements, accounting also includes a variety of practical aspects such as payroll and personnel management, operating cost control, and equipment investment management. These elements are essential to ensure the smooth functioning of medical practice and to maintain financial stability and transparency. Effective accounting is also key to preventing financial losses and protecting medical practices from possible tax checks and penalties. Proper financial management not only protects doctors from legal risks, but also contributes to their professional reputation and trust among patients. Accounting of doctors and dentists in Bulgaria includes specific features, dictated by both legal requirements and the peculiarities of the medical profession. Many of our clients - doctors and dental offices often ask us questions related to the Value Added Tax Act (VAT) and its application in their sector.
- Exemption from VAT: According to Art. 39 of the ZVAT, certain medical services, including those provided by health institutions and dentists, are exempt from VAT. This means that no value added tax is charged or paid for these services, which is an important accounting relief for practitioners in the medical sector.
- Tax documents and declarations: Despite the exemption from VAT, doctors and dentists should be careful when issuing tax documents. According to Art. 86 of the ZVAT, they are obliged to issue tax documents for all services that are not exempt from VAT and include them in the reference-declaration for the relevant tax period. This requires accurate and consistent reporting.
- Accounting for income and expenses: Doctors and dentists must keep detailed accounts of all their income and expenses. This includes recording all medical services, the sale of medications and materials, as well as all operating expenses. Accurate reporting is critical to determining the financial condition of the practice.
- Obligations for social and health insurance: Doctors and dentists, as well as all self-insured persons, are obliged to pay state social and health insurance. These payments are a significant element of their accounting and must be kept carefully to avoid errors and penalties.
- Personnel and payroll management: In many medical practices and dental clinics, support staff, administrators and other employees work. Managing their salaries, insurance, and tax liabilities is an essential part of the practice's accounting activity.
- Insurances: Doctors and dentists often take out different types of insurance — both professional liability and the premises in which they practice. Keeping accurate records of these insurances is important for both financial reporting and legal requirements.
- Investment in equipment: Modern medical equipment can be a significant expense for doctors and dentists. These investments must be properly accounted for and amortized in accounting in order to accurately reflect on the financial results of the practice.
- Hiring and operating expenses accounting: Many doctors and dentists operate in rented premises. Expenses for rent, utilities, maintenance and other operating expenses must be carefully accounted for and managed.
- Tax incentives and incentives: In certain cases, doctors and dentists may benefit from tax breaks and incentives provided for in Bulgarian legislation. Knowing and properly applying these reliefs can bring significant financial benefits.
- Preparing for Tax Inspections and Audits: It is important that doctors and dentists are prepared for any tax checks and audits. This includes maintaining detailed and accurate accounting documents, tax returns, and documentation for all financial operations.
- Information technology and accounting software: The use of modern accounting software and information technologies can significantly optimize accounting processes in medical practice. This includes automation of reports, payroll and inventory management, as well as facilitating communication with tax authorities.
- Professional help and advice: In connection with the complexity of accounting and taxation in the medical sector, many doctors and dentists seek professional help from accounting houses or consultants. This assistance can be key to the successful and lawful management of financial and accounting processes in their practices.
The basis of successful accounting in medical practice lies in the understanding and application of relevant tax and accounting standards. Working with a qualified accountant or financial consultant can be crucial to ensure compliance with legal requirements and to avoid mistakes that can lead to financial or legal problems. In addition, ongoing education and awareness of changes in accounting legislation and practices are essential. This includes updating knowledge about new tax benefits, changes in insurance rates and other relevant aspects of financial reporting.
What are the features of the accounting of a doctor's office?
According to the Law on Health Insurance, the financial relationship between the NSOC and the providers of medical care is negotiated at two levels: national - through the conclusion of National Framework Agreement(NRD) with the professional organizations of doctors and dentists, and individually - by signing individual contracts with contractors.
Is there a difference whether the doctor's office works with a health fund from an accounting point of view?
Working with the Health Insurance Fund makes significant differences in the accounting of the doctor's office. Doctors who have a contract with the Health Fund must prepare periodic reports on the examinations and medical interventions carried out, on the basis of which they are paid for the services of the cashier. On the other hand, offices that offer only paid services have greater flexibility from an accounting point of view, since they are not bound by the specific reporting requirements of the Health Fund.
Careful monitoring of liabilities and assets is critical to maintaining a healthy financial position of the cabinet, whether it works with the Health Fund or offers only paid services. This aspect is essential for managing cash flows and for planning future investments and expenses.
Which to choose - registration of a legal entity or a medical practice as a self-insured person?
The decision between registering a legal entity (such as an EOOD) or practicing as a self-employed person has a very serious impact on the way in which the tax and insurance obligations of the doctor or doctor's office are determined.
Doctors who work as self-insured persons are obliged to pay, in addition to insurance, tax according to the ZDDFL. The key thing about self-insured persons is that the law provides for the so-called”legally recognised costs“, which are fixed at 25% of income. Simply put, by law it is assumed and presumed that doctors registered as self-insured persons necessarily spent 25% of all receipts, without the need for the latter to prove it. These costs reduce the tax base, which, accordingly, reduces the effective tax rate! The problem with legally recognized expenses is that if the doctor's office spends more than 25% of the total revenue on various items - room rent, medical supplies, equipment, etc., then anything above the 25 percent in this hypothesis will not be recognized as an expense. In these cases, it may be more appropriate to register a company.
Another key benefit of registering as a self-employed person is that you do not have to have a cash register! However, for earned income, it is mandatory to issue a document for accounting of income, according to the provisions of the ZDDFL.
Doctors who have registered a legal entity as an EOOD (or an LLC if they have a partner) have the opportunity to count all expenses related to the company's activities as expenses of the company, which can lead to significant tax deductions.
With regard to the requirement of VAT, we point out that doctors and medical practices benefit from a special regime and therefore do not charge VAT because they fall under the law as exempt supplies.
The accounting firm Elan Consulting can help medical practices understand and manage these financial and tax aspects in the most efficient way. Our experts are available to offer customized solutions depending on the structure of your practice and the specific requirements of the Health Insurance Fund and other regulatory bodies. Our goal is to ensure transparency and accuracy in financial reporting so that you can focus on providing high-quality medical services to your patients.
Differences in your business model - working with the Health Insurance Fund or as a private practice - have an immediate impact on your tax and reporting obligations. With the right approach to accounting, you will not only comply with legal requirements, but also optimize your finances. “Elan Consulting” is your reliable solution for all aspects of accounting - from preparing reports for the Health Insurance Fund to optimizing your tax obligations in relation to the medical services you offer.
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