Now that 2014 has begun, doctors can start the year on a good note. One way to start the year right is to consider some financial tips and put them into action. By trying these tips at least, doctors can improve their finances while practising their profession.
Minimise non-deductible debt
Whenever possible, doctors ought to minimise or even do away with their non-deductible debt due to home purchases or renovations. They can accomplish that by carefully managing their cash flow, or by hiring an experienced accountant for doctors to see which debts can be managed.
Claim legitimate deductions
Like other individuals, doctors can claim single deductions as long as they are legitimate. Examples of claimable deductions include home office expenses, income protection insurance, and medical indemnity.
Pay superannuation maximally
Superannuation is a way of putting aside some money for retirement. Doctors must annually pay the maximum amount to a government-approved superannuation fund for employees who earn more than $450 each in a calendar month.
Choose the correct legal structure
Early on, doctors must select the correct legal structure for their practises. Doing so will allow doctors the maximum amount of income to be distributed to beneficiaries with lower tax rates, including an investment company.
The sooner doctors can practise the above tips, the sooner they can start 2014 in terms of managing their finances.