Medical, dental and therapy practices
Accounting for Chicago Medical and Dental Practices
Insurance receivables, owner salary, equipment
What this business files
Form numbers and dates. A deadline landing on a weekend moves to the following Monday.
- Form 1120-S or 1065The practice return, depending on the structure and the number of ownersMarch 15
- Form 941 and IL-941Payroll tax for clinical and front desk staff, and for the owner salaryQuarterly
- Form 5500Annual return for a retirement plan once the plan crosses the filing thresholdJuly 31, or later on extension
- Form 1040-ESQuarterly estimates on income passing through to the ownerApril 15, June 15, September 15, January 15
Where owners lose money
We watch for these on every file in this trade.
- Booking charges rather than collections shows revenue the practice will never receive, since every payer pays a contracted rate below the charge.
- Owner compensation in an S corporation has to be reasonable for the work performed. Too low invites reclassification, and too high wastes the election.
- Equipment bought at year end is a depreciation decision with several options, and taking the largest deduction is not always the best answer across three years.
- Associate doctors paid on a 1099 while working set hours in your rooms are a classification exposure.
Services this trade uses
One fixed monthly fee, agreed before the first month. Catch-up on prior periods is quoted once.
Medical or dental
Common questions
What is a reasonable salary for an S corporation owner?
Enough to pay for the work you actually perform, measured against what the practice would pay someone else to do it. The rest of the profit passes through without self-employment tax. We document the basis for the figure, because an undocumented number is the first thing an examiner asks about.
Should the practice buy or lease equipment?
A purchase expensed heavily in year one helps in a high-income year and wastes the deduction in a weak one. A lease spreads the cost and keeps cash. The answer depends on your next three years of income, not on the price.
Do you work with practice management software?
Yes. We take the collections and adjustment reports out of whatever you already run and reconcile them to the bank. Changing your clinical system is never part of the engagement.
How do you handle a new associate joining?
We model the cost as an employee and as a partner before the agreement is signed, including payroll tax, benefits and the effect on the owner distribution. The structure is much harder to change afterwards.
Get your price this week
The first conversation is free. We read three months of statements, quote a flat figure and hold it. We reply the same working day.