Practice Resources

Personal & Professional Accounting

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This lesson on personal and professional accounting provides the basic business and accounting information on how to run your medical practice. Various forms of taxation structures and the difference between a tax deduction and a tax credit are examined.

You will learn the differences between working as a physician employee and running your business as a sole proprietor. Accounting basics such as a balance sheet, income statement and cash flow statements are discussed.

The lesson reviews basic tax information such as marginal tax rates, various income taxes, the differences between a tax deduction and tax credit, and eligible business expense deductions.

There’s a high level discussion on the pros and cons of incorporation, and splitting/deferral of income under incorporation.

Key Points

  • Basics of accounting
  • Basics of Canadian taxation system
  • Tax deductions, credits, instalments
  • Incorporation
  • Income splitting
  • GST and HST