The Financial Reality for Doctors Is Unique — Your Accountant Must Be Too

As a physician, dentist, surgeon, optometrist, chiropractor, or other MPC-eligible healthcare professional, your financial world includes:

• HST-exempt medical service rules
• Complex income structures (OHIP, private billing, third-party billing, consulting)
• High professional expenses and equipment purchases
• Investment corporations and portfolio income inside your MPC
• Multi-layered compensation planning (salary, dividends, bonuses)
• Corporate passive income rules
• Spousal income planning
• Incorporation advantages & long-term wealth strategies
• CRA scrutiny around professional corporations

This means the average accountant will cost you money — often tens of thousands per year — through missed strategies, poor tax planning, or incorrect structuring.

We fix that by giving medical professionals a full 360-degree financial management system tailored to MPCs.

Our Specialized Accounting Services for Medical Professional Corporations

1. Advanced Tax Planning for Doctors & Medical Corporations

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We create tax structures designed specifically to maximize your retained earnings and long-term wealth.

Tax Strategies We Implement Include:

• Income deferral through retained earnings inside the MPC
• Salary vs. dividend optimization based on your household income
• Bonus-down strategies to minimize small business tax
• Income sprinkling rules (when allowed)
• Capital dividend account (CDA) planning
• Passive investment income tax mitigation
• Corporate tax integration strategies
• RRSP vs. corporate investing analysis
• Corporate life insurance (tax-sheltered growth) planning

Your tax plan is built around your medical specialty, income level, family situation, and long-term goals.

2. HST Rules for Medical Professional Corporations (Critical for CRA Compliance)

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Medical services provided by licensed healthcare professionals are HST-exempt — but many MPCs unknowingly risk incorrect HST treatment.

We manage:

✔ HST-Exempt Services (No HST Required)

• OHIP billings
• Insured patient services
• Medical exams & consultations
• Traditional healthcare treatments

✔ Taxable Revenue Streams (HST Required)

Many physicians incorrectly assume all income is exempt. Not true.

You must charge HST on:

• Cosmetic/non-medical procedures
• Medical consulting/coaching
• Expert witness/IME reports
• Fitness and wellness services
• Sale of medical products (skincare, supplements, orthotics)
• Aesthetic procedures not covered by OHIP

✔ Small Supplier Rule

If taxable income is under $30,000/year — no HST required.
If you exceed the threshold — mandatory registration.

✔ Input Tax Credits (ITCs)

Eligible for expenses tied to your taxable (non-exempt) income.

We ensure full compliance AND maximize ITCs where allowed.

3. Full-Service Medical Bookkeeping & Industry-Specific Financial Systems

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Accurate MPC bookkeeping is essential for CRA compliance, personal planning, and investment integration.

Our medical bookkeeping includes:

• Daily/weekly financial categorization
• Tracking OHIP vs. non-OHIP income streams
• Integration with EMR, OHIP portals, and practice management software
• Expense tracking for CME, licencing, equipment, vehicles, scrubs, and tools
• Automated payroll for clinic staff and associates
• AP/AR for clinic operations
• Monthly and quarterly financial statements
• Real-time dashboards showing net income, retained earnings, and cash flow

Your books stay clean, accurate, and audit-ready year-round.

4. OHIP Billing Support & Private Billing Management

Optional — but powerful for SEO and authority.

While you control your OHIP submissions, we support:

• Tracking OHIP receivables
• Reconciling OHIP deposits with your statements
• Identifying inconsistencies or billing delays
• Breaking down OHIP vs. private billings for tax categorization
• Ensuring private billings with HST (when applicable) are handled correctly

This helps ensure your MPC financials match your billing reality.

5. Payroll & Compensation Support for Physicians and Medical Clinics

We manage payroll for:

• Full-time and part-time clinic staff
• Medical receptionists
• RPNs, RNs, and support staff
• Associates and locums (with correct contractor classification)

We ensure:

• Proper source deductions
• T4/T4A compliance
• WSIB (if applicable)
• Direct deposit setup
• Multi-province payroll rules if you work in multiple clinics

6. Investment Accounting for Medical Corporations

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Most physicians build wealth through corporate investments. This requires precise accounting due to CRA passive income rules.

We manage:

• Investment income tracking (dividends, interest, capital gains)
• ACB (Adjusted Cost Base) tracking
• T5/T3 slips integration
• CDA (Capital Dividend Account) optimization
• Passive income grind-down planning
• Coordination with your portfolio manager or investment adviser
• Corporate vs. personal investment strategy alignment

We work directly with your investment advisors to ensure accuracy and maximize after-tax wealth.

7. Year-End Financials & Corporate Tax Filing for MPCs

We prepare:

• Notice to Reader (NTR) financial statements
• Corporate tax return (T2)
• Schedules for MPC-specific deductions
• Medical equipment CCA schedules
• Investment income schedules
• Shareholder loan planning
• Retained earnings analysis
• Salary/dividend compensation summaries

Year-end is not the finish line — it’s the planning foundation for your next 12 months of income optimization.

Why Medical Professionals Trust MiAccounting

1. We specialize in Medical Professional Corporations — not general small business

Doctors are not “typical business owners.”
Your accounting needs are more complex, regulated, and high-value.

2. Deep expertise in physician tax optimization

From income deferral to CDA planning to compensation strategy, we maximize savings.

3. We understand medical billing systems (OHIP & private)

This gives you cleaner books and better reporting.

4. We seamlessly coordinate with financial advisors

Your accountant and portfolio manager must work together — we make that easy.

5. Audit-proof systems for peace of mind

We protect you from unexpected CRA issues by keeping every detail accurate and compliant.

6. Forward-looking advice, not just historical bookkeeping

We help doctors plan for retirement, practice transitions, incorporation benefits, and long-term wealth.

FAQs for Medical Professional Corporation Accounting

What are the biggest tax advantages of incorporating my medical practice?

Lower corporate tax rates, income deferral, dividend optimization, and investment growth inside the corporation.

Are doctors required to charge HST?

Only for non-medical or cosmetic services and product sales. OHIP and medically necessary services are HST-exempt.

Can I run investments through my Medical Professional Corporation?

Yes — and we specialize in investment accounting, CDA planning, and passive income rules.

Does MiAccounting help with OHIP billing reconciliation?

Yes — we align OHIP deposits with your MPC financial reporting.

Do you prepare year-end financial statements and T2 corporate returns?

Absolutely — all tailored to MPC-specific rules and CRA requirements.

Optimize Your Medical Professional Corporation with MiAccounting

If you want:

✔ lower taxes
✔ cleaner books
✔ correct HST treatment
✔ investment-ready accounting
✔ OHIP + private billing support
✔ long-term wealth planning through your MPC

…then you need a medical-specialized accountant.

Contact MiAccounting today and let us manage your MPC so you can stay focused on what matters most — delivering exceptional patient care.

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