maximise your profits & minimise your tax

28
Clear Vision Accountancy Group Limited 1 Abacus House Newlands Road Corsham Wiltshire SN13 0BH www.clearvisiondental.co.uk Rob Walsh Rob Walsh Maximise your profits and Minimise your tax [email protected]

Upload: deegerrish

Post on 18-Jun-2015

211 views

Category:

Documents


5 download

TRANSCRIPT

Page 1: Maximise your profits & minimise your tax

Clear Vision Accountancy Group Limited1 Abacus HouseNewlands RoadCorsham WiltshireSN13 0BH

www.clearvisiondental.co.uk

Rob WalshRob Walsh

Maximise your profits and

Minimise your tax

[email protected]

Page 2: Maximise your profits & minimise your tax

About Clear VisionAbout Clear Vision• Accountancy and business advice to dentists and

orthodontists• Started working with dentists in 2001 – helped a

squat orthodontic business to win the ‘Practice of the Year’ at the Private Dentistry Awards in 2005

• Winners of 2011/12 Accountancy Firm of the Year• You can tap into our experience - complete the

postcard provided & get a 50% discount off ‘The Business of Dentistry’

• Member of Association of Specialist Providers to Dentists

Page 3: Maximise your profits & minimise your tax

4 take-aways4 take-aways

1. Your numbers = MORE

PROFIT

2. Business STRUCTURE...

3. TAX SAVINGS...

4. SPEED matters...

Page 4: Maximise your profits & minimise your tax

1. MORE PROFIT...1. MORE PROFIT...

MORE? or

LESS?

Page 5: Maximise your profits & minimise your tax

1. MORE PROFIT...1. MORE PROFIT...

1. How many active patients do you have?2. What is your exam recall rate?3. What is your hygiene recall rate?4. What is your hygiene concentration rate? -

scoring5. Do ALL of your patients know about ALL of

your services / treatments?6. What is your treatment conversion rate?7. What is your marketing ROI?8. What is your profit per month per service?9. Vision – team accountability / consistency to

vision

Page 6: Maximise your profits & minimise your tax

1. MORE PROFIT...1. MORE PROFIT...

1. How many active patients do you have?2. What is your exam recall rate?3. What is your hygiene recall rate?4. What is your hygiene concentration

rate?5. Do ALL of your patients know about ALL

of your services / treatments?6. What is your treatment conversion rate?7. What is your marketing ROI?8. What is your profit per month per service?

Page 7: Maximise your profits & minimise your tax

Hygiene concentration rate - Hygiene concentration rate - exampleexample

No. of active patients (private) 1000

90% of active patients (private) 900who should see the hygienist

No. of active patients seeing hygienist 450

Potential patients to see hygienist 450

£Therefore 2 x 30 mins per year 105 per hour

Cost per hour 35

Profit per hour 70

Potential profit 450 patients x £70 31,500 per annum

Page 8: Maximise your profits & minimise your tax

Marketing ROIMarketing ROI

• Branding• Internal marketing• External marketing - £!• Referral systems & thank yous• Patient journey• 80 patient recommendations /10

website /10 other

Page 9: Maximise your profits & minimise your tax

FindingsFindings

• 10 / 80 / 10• Inconsistency• Lack of accountability• Not measuring

Page 10: Maximise your profits & minimise your tax

Benchmarking (Sole Benchmarking (Sole Owners)Owners)

Fees £1m £1m £300k £300k

Profit £40k

£350k

£60k £130k

Net profit % 4% 35% 20% 43%

Why?

Page 11: Maximise your profits & minimise your tax

Your business modelYour business model

YOU – role of MD

Supported by team and business systems

90% margin

YOUR PATIENTS(UDAs –

£6 to £42 – average £22)Associates

50% margin?Specialists

Hygienists

66% marginTherapists

Page 12: Maximise your profits & minimise your tax

Specialists / Associates / Specialists / Associates / HygienistsHygienists

1. Are you paying 45% or lower for associates?2. Are you paying 45% of lower for specialists?3. Are you using sliding scales for associates &

specialists?4. Are hygienists paid by %? Be careful of high

value hygiene work e.g. whitening5. Are you paying hygienists on an hourly

rate? Even for FTAs, even for gaps?6. Why should you pay for all of the CQC /

HTM?

Page 13: Maximise your profits & minimise your tax

SpecialistsSpecialists

For example:Implant per month referred £2,500 x 12 months = £30,000

Take a % e.g. 40% = £12,000 x 10 years = £120,000OR:Do the crown e.g. £900 fee per crown = £10,800 x 10 years = £108,000

Page 14: Maximise your profits & minimise your tax

Growing Specialist Growing Specialist PracticesPractices

• Specific growth strategy• Specific marketing strategy• Systems to aid growth

Page 15: Maximise your profits & minimise your tax

HygienistsHygienists

Typically £90 - £130 per hour charge

Cost £25 to £35 per hour

Average £105Cost £35Profit £70

66% gross profit

Page 16: Maximise your profits & minimise your tax

Your business modelYour business model

YOU – role of MD

Supported by team and business systems

90% margin

YOUR PATIENTS(UDAs –

£6 to £42 – average £22)Associates

50% margin?Specialists

Hygienists

66% marginTherapists

Page 17: Maximise your profits & minimise your tax

Real life exampleReal life example

• Restructure of a 60% NHS practice (£170k UDA contract value)

• Turnover £550,000 per year• Limited company• 2 directors – one 4 days per week, one 3

days per week• One employed associate - £60,000 salary• Net profit was £80,000 per year• Two years later net profit = £220,000

Page 18: Maximise your profits & minimise your tax

1. MORE PROFIT...1. MORE PROFIT...

MORE? or

LESS?ACTION: Complete questions 1 and 2 on the postcard…

Page 19: Maximise your profits & minimise your tax

2. STRUCTURE...2. STRUCTURE...

Your dental business 1. Sole trader2. Partnership – Tax - Spouse3. Expense sharing partnership4. Limited liability partnership5. Limited company

Page 20: Maximise your profits & minimise your tax

Incorporation – Incorporation – THE POSITIVESTHE POSITIVES

1. Potential to save tax2. Goodwill payout - enhanced personal

reward3. Limit your liability4. Create a corporate structure 5. Easier, cleaner exit route6. Team motivation7. School fees through business (could be

beneficial)8. Use bank funding received on goodwill to

pay off debts or improve your personal assets

Page 21: Maximise your profits & minimise your tax

Incorporation – Incorporation – THE NEGATIVESTHE NEGATIVES

1. Need more time to maintain efficient records

2. Statutory requirements to be met

3. Prepare an Annual Return to the GDC

4. Transfer your NHS contract to a Limited

Company

5. HMRC may question the valuation

6. Be careful of superannuation on incorporation

Page 22: Maximise your profits & minimise your tax

3. TAX SAVINGS 3. TAX SAVINGS on on incorporationincorporation

Real life TAX SAVINGS:• Husband and wife partnership• Net profit £120,000• Incorporated business• Goodwill value £520,000• Will save nearly £100,000 in tax over

10 years

Page 23: Maximise your profits & minimise your tax

4. SPEED4. SPEED matters... matters...

Example 31 March year end:

• Tax planning will take place Feb or early March– Enterprise Investment Scheme– Venture Capital Trust– Film Schemes– Enterprise Zone Trust

• Accounts prepared by mid May• Tax liability calculated by end May

Page 24: Maximise your profits & minimise your tax

4. SPEED4. SPEED matters... matters...

1. Timely information...2. Cash planning...3. A financial forecast...4. Regular management accounts...

PLUS...5. Goodwill valuation every year..6. Communication...

ACTION: Complete questions 3 and 4 on the postcard…

Page 25: Maximise your profits & minimise your tax

Your Your NEXT STEPsNEXT STEPs......

1. Read the book... Tick the box, give us your email address and you’ll get a link to buy the book...

2. Let’s talk...

Hand in your completed postcard to get your half price book…Complete feed-back form to arrange a call...

Page 26: Maximise your profits & minimise your tax

Follow Clear Vision…Follow Clear Vision…

• On the web: www.clearvisiondental.co.uk *

*Download first two chapters of ‘The Business of Dentistry’ for FREE• Via our blog:

www.clearvisiondentalblog.co.uk • On Twitter: @CVfordentists for news, views and added value downloads

Page 27: Maximise your profits & minimise your tax

At Clear Vision, we believe every business has the power to change lives, by integrating giving into its everyday business activities.

When we finish a set of accounts, a tax return, or a consultancy project, we donate a goat to a Kenyan family via the global ‘Buy1Give1’ initiative – www.b1g1.com.

Could your practice integrate giving into its everyday activities too?

Clear Vision clients make a Clear Vision clients make a difference…difference…

Page 28: Maximise your profits & minimise your tax

Clear Vision Accountancy Group Limited1 Abacus HouseNewlands RoadCorsham WiltshireSN13 0BH

www.clearvisiondental.co.uk

Rob WalshRob Walsh

Maximise your profits and

Minimise your tax

[email protected]