REAL LIFE CASE STUDY – WE SAVED DOCTOR T $90,000 plus a $180,000 penalty.
When plastic surgeon Doctor Turner called us, he was concerned his Xero Accounting files were not right even though he had a book keeper and his accountant working on them. He was also very behind in his tax and BAS lodgements and the ATO had just given him a $180,000 late lodgement penalty notice. On top of all of that, the accountant had also advised he owed $60,000 in BAS payments. After just paying $90,000 on his last year’s tax bill, Doctor Turner was worried about his tax position. Doctor Turner was in the early years of establishing and setting up his practice and still had some difficulty with his cash flow. He could not understand why he had such large tax bills.
After a review of Doctor Turner’s last tax return, Xero accounting files and business structure set up we were able to amend his last tax return which refunded him $90,000. We cleaned up the mess in Xero, lodged all of his outstanding tax returns and BAS returns, had interest and fines remitted and changed his business structure to work more effectively for him which resulted in reducing his total tax and BAS payable to almost NIL. We continue to work closely with Doctor Turner keeping his Xero sorted, his tax and BAS lodgements up to date and provide business advice to improve his cash flow.
The Lessons Learnt:
- If you feel your tax bill is too high, question your accountant and get it reviewed it could save you thousands of dollars.
- If your Xero Accounting file is a mess, find a Xero Accounting Expert to assist you, this will also save you thousands in book keeping and accounting fees if done the right way.
- A business structure with a service entity is not a one size fits all proposition and over time it can change as your business grows. Having the right business structure in place and most importantly operating as effectively as possible can also save you thousands of dollars.
- Use an accountant and book keeper that has medical specialist and setting up practice experience, this could also save you thousands of dollars.
A WORD FROM DOCTOR TURNER about us and our service….
I wish I had engaged Nicole earlier…