How to Choose the Best CPA for Your Medical Practice or Healthcare Business in Canada

Gondaliya CPA offers specialized healthcare CPA Canada services focusing on medical practice accounting, including OHIP billing, clinic billing, professional corporation rules, and GST/HST exemptions. We assist doctors and professional corporations with compliance on medical professional corporation rules, remuneration planning, and timely corporate tax filings to ensure smooth financial management.

Quick Summary

The right firm has to hold four things at once: the college rules on who may own shares, the CRA rules on what may be deducted, the split between exempt and taxable supplies, and a defensible remuneration mix. Please note that a general accountant will usually handle the second of those well and the other three by guesswork.

Reading time: 39 minutes.

The Numbers That Matter

Understanding Healthcare Accounting Needs for Canadian Doctors and Dentists

Role of a Medical Practice Accountant in Managing Clinic and OHIP Billing

A medical practice accountant helps keep clinics in Canada financially healthy. They know the unique challenges doctors and dentists face, especially with OHIP billing and following the rules.

Key Responsibilities:

• Billing Management: The accountant makes sure all clinic services get billed correctly to OHIP. This helps avoid mistakes that can slow down payments or trigger audits.
• Financial Reporting: They create clear financial reports designed for healthcare settings. These reports help doctors understand their money flow better.
• Tax Compliance: These accountants know healthcare tax laws well. They guide medical practices to follow tax rules while reducing what they owe.
• Expense Tracking: Keeping track of patient care costs is important to stay profitable. A good accountant spots deductible expenses that might be missed.
• Regulatory Guidance: They understand the rules for professional corporations in each province. This helps doctors keep their ownership and operations legal.
• Cash Flow Management: By studying cash flow, accountants advise on ways to improve money availability, which matters when patient visits go up or down.
• Audit Support: If the CRA checks OHIP claims or taxes, having a CPA experienced in healthcare accounting means expert help with paperwork and representation.
• Strategic Planning: These professionals don’t just handle daily tasks. They also offer advice for long-term money plans, helping practices grow or adjust as the market changes.

In short, hiring a medical practice accountant means getting more than just number crunching. You gain a partner who knows your field well and lets you focus on patient care while they handle your finances carefully.

Professional Corporation Setup and Medical Professional Corporation Rules

Starting a professional corporation for your medical practice isn’t simple. You need to know Canadian healthcare rules, tax laws, and compliance standards. A healthcare CPA Canada or a medical practice accountant Canada can help you meet these rules and save on taxes. Picking the right CPA for doctors or a healthcare tax accountant helps you handle the tricky professional corporation rules.

Professional Corporation Setup Process

The setup process has many important steps. These steps fit the legal and financial needs of healthcare pros in Ontario and across Canada. If you work with a medical practice accountant Canada early, you avoid missing any rules from health colleges or CRA.

Here’s what usually happens:

1. Check Eligibility: Make sure you qualify under your college (like CPSO for doctors).
2. Apply for Certificate of Authorization: This must come from your regulator before starting.
3. Get Name Approval: Your corporation name must follow provincial and health regulator rules.
4. File Incorporation: Prepare Articles that show professional status, who owns shares, and your goals.
5. Register With CRA: Sign up for corporate tax (T2), GST/HST if needed, payroll accounts, and other remittances.

A healthcare CPA Canada helps you through these steps. They also keep you updated on yearly renewals like certificates of authorization.

Legal Structure and Incorporation Steps

When you incorporate a medical practice, you create a legal entity separate from yourself. But there are strict rules because of the profession’s nature. Usually, this means setting up a Professional Corporation under Ontario’s Business Corporations Act.

Important steps include:

1. Check Rules: Look at your college’s rules about who can own shares, share classes, voting rights, and limits on ownership.
2. Draft Documents: Write Articles that include rules specific to professional corporations—like no non-professional owners.
3. File with ServiceOntario: Send forms with fees to get your Certificate of Incorporation.
4. Apply for Certificate of Authorization: Get official permission to operate as an MPC.
5. Keep Governance Records: Keep minute books with resolutions about share issuance following regulator policies.

A skilled medical practice accountant Canada makes these steps smoother so nothing is missed or causes problems later.

Medical Professional Corporation (MPC) Rules

MPCs follow tight regulations set by bodies like the CPSO (College of Physicians & Surgeons Ontario). These rules decide who owns shares (usually licensed pros only), how profits are shared, how doctors get paid, and certificate renewals every year.

Breaking these rules risks losing your authorization or facing tough CRA audits on deductions claimed through MPCs.

Benefits of Incorporation for Doctors and Dentists

Doctors and dentists gain many perks when they incorporate properly with help from a healthcare tax accountant familiar with Canadian law:

• Tax Deferral: Money kept in the corporation pays less tax than personal income at high rates [CRA Small Business Deduction].
• Income Splitting: Dividends can go to family shareholders if it fits legal tests [CRA Tax on Split Income].
• Limited Liability: Your personal assets stay separate from business debts; malpractice insurance stays vital [CPSO Guidance].
• Expense Deductions: You can deduct office rent, salaries, and other costs allowed against business income [CRA s18(1)(a)].

Working with Gondaliya CPA keeps your incorporation plan solid while fitting new 2026 changes about passive income limits affecting doctor-owned corporations.

Sharad Gondaliya, CPA (Canada & USA), has over 10 years helping Canadian businesses manage their books well.

Tax Planning Strategies for Healthcare Professionals

Tax planning matters a lot for healthcare pros in Canada. It helps you keep more of what you earn and follow the rules. A healthcare CPA Canada knows the specifics of medical professional corporations. They offer advice that fits CRA rules and local laws.

Tax Rate Comparison: Incorporated vs. Unincorporated Practices

Choosing to incorporate your medical practice changes your tax picture. Operating as an unincorporated sole proprietor or partnership has different tax effects than incorporation. Knowing these differences helps doctors decide what suits them best.

Understanding Federal and Provincial Tax Rates

In Ontario, incorporated practices pay less tax thanks to the small business deduction (SBD). The federal corporate tax rate drops to 9% on active income up to $500,000. Ontario adds about 3.2% provincially. Unincorporated doctors pay personal marginal rates that can jump from around 20% up to over 53%, depending on income.

Keep in mind: If passive investment income inside the corporation passes $50,000 a year, the SBD phases out. That raises tax rates sharply. So, managing passive investments inside your corporation is key.

Here’s a quick look:

• Incorporated Practice: 9% federal + ~3.2% Ontario = ~12.2% combined
• Unincorporated: Personal marginal rates up to ~53%

This shows why many consider incorporating.

Impact on Take-Home Income and Long-Term Planning

Lower corporate taxes let you keep more money in the company. You can hold onto earnings for reinvestment or take them later as dividends or salary.

A healthcare CPA Canada guides clients on how to balance salary and dividends carefully. They also help with CPP contribution limits and RRSP room effects. Incorporation makes passing ownership easier too — like transferring shares when retiring — following college rules.

Salary and Dividend Decisions in Remuneration Planning

Figuring out how much to take as salary versus dividends takes thought. You have to consider taxes, CPP payments, compliance, and retirement savings options.

Balancing Salary, Dividends, and CPP Contributions

Advantages and Disadvantages of Each Approach

• Salary Advantages:
  • Builds pensionable earnings under CPP
  • Provides steady income
  • Allows deductible employer benefits
• Salary Disadvantages:
  • Payroll taxes apply (EI may be exempted)
  • More admin work
• Dividend Advantages:
  • Lower personal taxes if planned right (due to gross-up credits)
  • No payroll remittance hassle
• Dividend Disadvantages:
  • No RRSP room or CPP benefits gained
  • Could get audited if CRA thinks pay is unreasonable under ITA s.67

A good healthcare tax accountant helps keep everything documented properly so CRA doesn’t challenge your payments under s.15 ITA rules.

Compliance with CRA Guidelines

CRA wants compensation to be reasonable for services done. This should be clear in board minutes or resolutions showing market rates in your specialty. If not followed, CRA might reassess your returns with penalties or treat dividends as taxable benefits, causing issues on both personal and corporate taxes.

At Gondaliya CPA, we stress clear engagement letters that set expectations about remuneration advice based on current laws — including changes coming in 2026 affecting capital asset expensing common in medical practices.

Handling GST/HST for Physicians, Dentists, and Mixed Practices

Exempt and Taxable Supplies, Cosmetic Procedures, and Third-Party Billing

Physicians and dentists need to tell apart exempt supplies from taxable ones under Canadian GST/HST rules. Most medically needed services are exempt under the Excise Tax Act. But some services, like cosmetic treatments or reports billed to third parties, are taxable. Knowing these details helps with correct tax filing and following the rules.

Identifying Taxable Healthcare Services

Taxable healthcare services usually cover elective cosmetic work that isn’t medically necessary per provincial plans like OHIP. Things like Botox for looks or teeth whitening at dental clinics fall here. Also, medical exams done for insurance claims often have GST/HST because they’re not exempt professional services.

Doctors’ corporations should check their services carefully to mark each supply right. Getting this wrong can mean wrong tax filings or lost input tax credits (ITCs). Talking with a medical practice accountant Canada-wide helps make sure taxable and exempt supplies match CRA rules [CRA: GST/HST Info Sheet GI-131].

GST/HST Treatment for Cosmetic Procedures

Cosmetic work that isn’t seen as therapeutic by bodies like CPSO or RCDSO must include GST/HST—currently 13% in Ontario. Clinics offering both exempt health care and taxable cosmetic services should keep clear records showing income from each.

Invoices should show these charges separately. This cuts audit risks tied to limited ITC claims on expenses partly used in taxable work [CRA: Guide RC4022]. Not charging GST/HST on cosmetic procedures can bring penalties if the CRA checks your books.

Billing to Insurance Companies and Other Third Parties

Billing private insurers or other third parties adds complexity to how GST/HST applies. When fees reimburse insured health services, exemption usually applies.

But extra charges like report prep fees billed apart from care may have HST unless otherwise exempt [CRA: Interpretation Bulletin IT-496R3]. Doctor corporations must keep billing clear to meet CRA rules and professional standards.

GST/HST Registration and Input Tax Credits

Handling registration needs and claiming input tax credits can get tricky for incorporated healthcare practices in places like Toronto.

Who Must Register for GST/HST?

A physician’s corporation must sign up for a GST/HST account if its total worldwide taxable sales top $30,000 over four calendar quarters. This includes any non-exempt goods or services sold beyond patient care [CRA: Small Supplier Threshold].

Even if most money comes from exempt OHIP billings, revenue from taxable things like cosmetic work means registration is mandatory when the limit’s hit. You can also register voluntarily below that amount but must file returns regularly anyway.

Registering lets you claim input tax credits but brings ongoing duties like timely payments—a key factor when picking a healthcare-savvy CPA.

Maximizing Input Tax Credits

Input tax credits let registered practices get back GST/HST paid on business costs linked partly to commercial activity. This might be rent split between clinical use and admin tasks connected to taxable services [CRA: Guide RC4022].

Getting this split right avoids denied ITCs common when mixed-use assets exist in clinics that blend physician offices with taxed providers (like med spa retail).

Working with a medical practice accountant Canada-based helps set up proper records covering eligible expenses—from capital gear under correct CCA classes to everyday costs—boosting cash flow without triggering audit troubles per Income Tax Act s230 document rules requiring six years retention [Canada.ca].

Reporting and Filing Processes

Registered entities file regular electronic returns listing collected GST/HST minus claimed ITCs through CRA’s My Business Account portal or approved EFILE software like QuickBooks or Xero. Top firms such as Gondaliya CPA handle many Toronto clients this way.

Filing late risks penalties of 1% monthly up to 12 months plus interest; keeping an eye on deadlines lowers risk during year-end reconciliations before submitting corporate T2 returns with full health & sales tax info reviewed carefully as per Canadian federal-provincial laws current through 2026 updates affecting small business deductions [CRA Circulars & Notices].

For tailored help with your clinic’s mix of billings under Canada’s complex health & sales tax rules call Gondaliya CPA at 647‑212‑9559 | info@gondaliyacpa.ca – free consults across Toronto/Ontario.

Essential Deductions and Practice Expenses for Canadian Medical Professionals

Medical professionals in Canada face some tricky accounting rules. Incorporation, billing, and regulations all mix up finances. A healthcare CPA Canada or medical practice accountant Canada knows these rules well. They help you get the right tax deductions without problems. Keeping track of deductible expenses keeps your practice’s money healthy.

Practice Overhead, Equipment, Continuing Education, and Home Office Costs

A healthcare tax accountant knows overhead costs hit incorporated doctors hard. These include rent, utilities, office supplies, medical gear leases or buys, mandatory continuing education fees, and home office costs if you work from home.

Each type has CRA rules about what you can deduct:

• Overhead: Rent for your clinic counts if it’s only for business.
• Equipment: Big assets like diagnostic machines go under specific CCA classes with set depreciation.
• Continuing Education: Fees that keep your license valid or improve skills are deductible.
• Home Office: Only counts if you use it regularly and just for admin work. You must be fair in how you split expenses.

A medical practice accountant Canada makes sure these claims follow CRA rules and avoid audits.

Deductible Expenses: What Counts?

Not every cost is deductible. Healthcare tax accountants tell clients to focus on “reasonable” expenses under ITA s.67 that relate to making income.

Typical deductible items are:

• Professional dues (like CPSO fees)
• Malpractice insurance
• Staff salaries including associates
• Clinic supplies used during patient care
• Leasehold improvements needed for running the office
• Vehicle costs based on business use with proper logs

Personal expenses dressed as business ones can cause penalties. A CPA for doctors helps avoid costly mistakes by knowing these fine lines.

Managing Practice Overhead and Equipment Purchases

Keeping overhead in check means careful tracking of monthly costs using bookkeeping software like QuickBooks or Xero with Hubdoc receipt capture.

Starting 2026, small businesses including many physician corporations can fully expense certain capital purchases in the year bought instead of spreading depreciation over years (per CRA).

This helps practices investing in new tech but needs careful classification between capital and regular expenses. A healthcare CPA Canada familiar with CRA’s immediate expensing rules and CCA classes like Class 8 (20% declining balance) guides this process well.

Continuing Education and Professional Fees

Doctors must keep up certification by taking courses paid personally or via their corporation budget. Medical practice accountants Canada verify which courses count as business expenses per CRA.

Generally, courses required by licensing bodies like CPSO’s mandatory CME credits qualify fully. Optional seminars not linked to clinical duties might not count.

Professional fees include yearly registration renewals necessary to practice legally within Ontario’s colleges like CPSO or RCDSO. Proper records ensure deductions match the correct fiscal year on T2 returns.

Optimizing Home Office Deduction

If you work from home sometimes, you can claim a home office deduction but only if the space is clearly set aside for admin tasks related to your incorporated practice (CRA rule).

You may deduct utilities proportional to the workspace size versus whole house plus internet bills tied to business use.

Healthcare tax accountants suggest keeping good records: floor plans showing work area size and saving utility bills for at least six years per ITA s.230 — useful if CRA asks for proof later.

Billing Reconciliation, Revenue Management, and Overhead Splits

Billing reconciliation is key for keeping revenue accurate in any medical practice. Physicians often juggle OHIP fee-for-service payments plus private billings like cosmetic services subject to GST/HST taxes. Healthcare CPA Canada teams know how to handle mixed supply rules so you stay compliant with CRA exempt vs taxable services laws.

Best Practices for Billing Reconciliation

Reconciliation means matching OHIP payments received against bills logged using accrual accounting suited for physician corporations tracking locums’ billings separately from associates’ shares.

Steps include:

• Logging daily patient visits crosschecked against electronic billing submissions.
• Quickly following up on overdue receivables beyond usual terms.
• Separating government-funded exempt services from taxable third-party billings and adjusting input tax credits accordingly.

Using automated systems linked with Wagepoint payroll simplifies associate pay calculations tied to overall revenue split monitored by a trusted medical practice accountant Canada.

Revenue Tracking and Allocation

Medical practices get money from many places—monthly OHIP payouts plus client invoices right after services need detailed tracking set up around charts-of-account designed by healthcare CPAs experienced with Canadian doctor offices.

Correct allocation avoids mistakes that affect taxable income levels tied to small business deductions federally combined with Ontario provincial rates changing in 2026 that impact corporate taxes due.

Overhead Splits Among Partners and Associates

In clinics where several providers share space but run separate corporations—or have associates—the way overhead gets split should match market values documented well in shareholder agreements updated regularly.

CPA for doctors help create fair splits covering rent shares per doctor numbers plus shared staff salaries while avoiding accidental shareholder benefits caught by ITA s15 rules.

Health Spending Accounts and Employee Benefits in Medical Practices

Health spending accounts (HSAs) give incorporated doctors flexible ways to pay health expenses outside traditional group plans. Employers contribute money that lowers taxable income when done right — an approach known well by healthcare tax accountants watching changing laws on employee benefits tailored to medical offices’ needs.

For advice on structuring your incorporation expenses call Gondaliya CPA at 647‑212‑9559 or info@gondaliyacpa.ca. We offer free consultations backed by 1300+ five-star Google reviews helping Toronto area physicians across Ontario and beyond.

Succession, Retirement, and Estate Planning for Healthcare Providers

Succession, retirement, and estate planning matter a lot for healthcare professionals in Canada. They help secure your financial future. Working with a healthcare CPA Canada or a medical practice accountant Canada helps you follow professional corporation rules. Plus, it makes your taxes more efficient. A CPA for doctors knows the special rules for incorporated practices in Ontario and across the country.

Individual Pension Plan (IPP) and Lifetime Capital Gains Exemption (LCGE)

Healthcare providers gain from tools like the Individual Pension Plan (IPP) and Lifetime Capital Gains Exemption (LCGE). These need knowledge from a healthcare tax accountant or healthcare CPA Canada who understands physician corporations’ needs well.

How IPPs Work and Their Tax Benefits

An IPP is a defined-benefit pension plan made for business owners like incorporated doctors. It lets you contribute more than RRSPs after age 40. This gives steady retirement income. Contributions from the corporation reduce taxable income since they are deductible expenses. The plan also protects assets from creditors, which personal savings do not offer.

Tax benefits include:

• Deductible corporate contributions.
• Growth inside the pension fund without tax now.
• Possibly lower taxes when taking money out at retirement compared to salary or dividends.

A CPA for doctors can set up an IPP based on your age, income, and goals to get the best results.

Lifetime Capital Gains Exemption for Medical Professionals

The LCGE lets shareholders in small business corporations exempt up to $971,190* of capital gains on shares sold during succession events (check CRA for exact numbers). Medical pros with incorporated practices following provincial rules—like CPSO certificates—can use this exemption if share ownership fits college rules.

A medical practice accountant Canada helps arrange shares before selling or transferring them. This way, clients qualify fully without bad tax surprises from passive investments or breaking professional corporation rules.

Succession and Estate Planning Strategies

Good succession planning gets your practice ready to pass on smoothly with little fuss. Some strategies are:

• Making buy-sell agreements that match shareholder eligibility under regulator rules.
• Using trusts when allowed by Ontario Business Corporations Act.
• Changing corporate setup well before retirement.

Estate planning fits in by making sure assets go where you want them. It also uses lifetime exemptions smartly. A healthcare CPA Canada helps align plans with laws for professional corporations in Toronto and Ontario.

Accounting Technology Used: Software Integration and Process Efficiency

New accounting tech improves accuracy and speed when handling medical billing’s complexity. A medical practice accountant Canada makes sure software fits health sector needs including OHIP billing quirks.

Recommended Accounting Software for Medical Practices

Popular software accountants suggest includes QuickBooks Online, Xero, Hubdoc plus payroll tools like Wagepoint or ADP suited for doctor payrolls with locums or associate splits. These systems help:

• Auto bank feed matching
• Expense tracking live
• Custom reports meeting CRA filing rules

Choosing software all teams can use cuts mistakes common when mixing exempt services with taxable ones—a problem clinics see when offering cosmetic alongside insured care.

Streamlining Workflow with Cloud Solutions

Cloud accounting lets CPAs check cash flow anytime without disturbing busy clinics. This works well for CPAs handling many locations across Toronto/Ontario who must file on time while using secure shared digital spaces following Canadian privacy laws.

Automation for Payroll and Expense Management

Automation eases repeat jobs like payroll remittances including CPP/EI calculations plus sorting expenses right. This is key when paying associates properly under ITA s67 reasonableness rules that CRA audits often check in physician corporations nationwide handled by skilled healthcare tax accountants.

CRA Representation, Compliance Support, and Audit Response

A good healthcare tax accountant helps get ready early for audits by making sure records meet CRA’s strict storage rules (§230 ITA), usually six years after year-end filing.

Audit Preparation and CRA Representation

Preparation means checking T2 returns are full and correct with active business income claims after small business deduction changes coming post-2026 federal updates that affect incorporated SMBs including physician offices in Ontario’s area.

Maintaining Compliance With Regulatory Bodies

Healthcare CPAs keep you following not just federal taxes but also college mandates on shareholder makeup yearly renewed through CPSO/RCDSO certificates to avoid big fines from accidental breaches.

Ongoing Support And Advisory Services

CPAs advise all year on pay mixes balancing salary/dividends avoiding split-income risks after incorporation plus quick advice as laws change impacting clinic incomes from OHIP billings or GST/HST on cosmetic care.

Service Structure, Fee Models, And Annual Engagement With Gondaliya CPA

Gondaliya CPA offers clear service plans just for health pros needing deep expertise beyond general firms focusing on fixed fees so no surprise bills pop up later.

Overview Of Engagement Models

Clients pick full yearly packages covering bookkeeping fixes to T2 filings backed by compilation engagements done only by licensed public accountants registered at CPA Ontario—this keeps things clean through the work period.

Fixed vs Value-Based Fee Structures

Fixed fees give budgeting peace of mind liked by busy docs while value-based fees match charges to case complexity like multiple corporations juggling locums/associate costs needing detailed models done regularly at Gondaliya CPA made to fit client needs clearly outlined upfront per CSRS 4200 compilation standards.

Annual Review And Strategic Planning Sessions

Each year’s review updates forecasts factoring new immediate expensing starting 2026 that boosts capital cost allowance on new equipment often needed to keep clinics modern plus one-on-one talks spotting issues early cutting risk of costly re-checks later.

Year-End Tax Review And Strategic Planning For Medical Professionals

Year-end checks done by skilled medical practice accountants canada zoom in on maxing out deductions such as education costs fully allowed under s18(1)(a). They also make sure receivables tie up correctly using billed-basis accounting rules unique to regulated professions so no hidden debts linger before final electronic filing done securely on time across Toronto/Ontario areas served widely.

Contact Gondaliya CPA today at 647‑212‑9559 or info@gondaliyacpa.ca — for a free consult focused on securing your finances with expert healthcare accounting help trusted across Canada.

*Figures marked illustrative unless stated otherwise.*

Frequently Asked Questions (FAQ)

Selection Criteria: Choosing the Right Healthcare CPA for Your Practice

• Expertise in medical professional corporation rules across Canadian provinces.
• Experience with OHIP billing reconciliations and mixed taxable/exempt supplies.
• Knowledge of GST/HST input tax credit apportionment specific to clinics.
• Ability to provide clear remuneration planning aligned with TOSI rules.
• Proven track record in CRA representation during audits or reviews.
• Transparent fee structure clearly stated before engagement.
• Strong integration skills with common medical accounting software like QuickBooks or Xero.
• Dedicated annual reviews and strategic financial planning sessions.

Quick Comparison Table: Bookkeeper vs Accountant vs Licensed Healthcare CPA

What Should You Prepare Before Your First Consultation?

• Latest financial statements and corporate tax returns (T2).
• Clinic billing reports including OHIP payments and private billings.
• Shareholder agreements if incorporated under professional corporation rules.
• Details on salary vs dividend payments made previously.
• List of significant expenses including capital asset purchases.
• Current GST/HST filings and registration status documentation.

How Do You Switch Accountants Without Disrupting Filings?

1. Notify current accountant formally about transition date.
2. Gather all bookkeeping files and past tax filings.
3. Ensure new healthcare CPA has access to bank feeds and billing systems.
4. Confirm deadlines for upcoming GST/HST or T2 returns.
5. Schedule onboarding session with new firm to align expectations.
6. Monitor filing progress closely during first few months.

Why Trust Gondaliya CPA?

Sharad Gondaliya holds dual Canadian & US CPA licenses with 10+ years helping doctors across Canada optimize taxes legally. Our team stays current on health sector changes such as 2026 passive income rules impacting physician corporations while providing personalized attention in Toronto/Ontario region.

What a specialist accountant actually adds differs by sector. Here are eleven and where the expertise shows.

• Medical doctors & physician professional corporations: College share rules, OHIP reconciliation and a defensible remuneration mix all have to work together.
• Dentists & dental practices: The blend of exempt clinical and taxable cosmetic work makes apportionment the hardest part.
• Daycare, childcare & CWELCC services: Subsidy revenue timing and payroll structure carry the documentation burden.
• Consulting Firms: Uneven income makes the salary and dividend decision a cash flow question as much as a tax one.
• Restaurants & food and beverage: Cash reconciliation and platform commissions netted off deposits are the recurring gaps.
• E-commerce & online retailers: Marketplace fees and sales tax varying by destination mirror the mixed-supply problem clinics face.
• Construction, general contractors & skilled trades: Worker classification and source deduction accuracy carry the exposure.
• Property developers & builders: Costs shared across entities need a documented allocation basis.
• Real estate investors, landlords & holding companies: Passive income and shareholder loans both erode the position quietly.
• Technology startups & SaaS: Deferred revenue and equipment expensing decide what the statements actually show.
• Transportation, logistics & trucking: Vehicle capital cost allowance classes and mileage substantiation govern what is claimable.

Professional Guidance on Healthcare Accounting: How Gondaliya CPA Supports Canadian Medical Practices

Choosing a firm for a medical practice is not the same as choosing one for any other business. The corporation answers to a college as well as to the CRA, most of its revenue is exempt while some of it is not, and the owner’s pay has to satisfy a reasonableness test. Gondaliya CPA works with all four of those at once, on a fixed fee.

We handle what decides the outcome: keeping the certificate of authorization and share structure inside college rules, reconciling OHIP and private billings against what was actually received, apportioning input tax credits between exempt and taxable supplies, setting the salary and dividend mix with the reasoning recorded in the minute book, classifying equipment and leasehold spend correctly, documenting overhead splits between associates, and preparing the T2 with the evidence behind every position.

Our team works from your own billing, payroll and clinical data rather than a template. Single practitioner or multi-provider clinic, you get clear advice and a fixed price before we start.

• Federal small business rate: 9% on active income to $500,000
• Ontario small business rate: About 3.2%, combined near 12.2%
• Unincorporated: Personal marginal rates up to about 53%
• Passive income threshold: $50,000 before the SBD phases out
• GST/HST registration: $30,000 of taxable supplies over four quarters
• Ontario HST on cosmetic work: 13%
• Class 8: 20% declining balance on equipment
• Lifetime capital gains exemption: Up to $971,190
• GST/HST late filing: 1% monthly, up to 12 months, plus interest
• Record retention: Six years under ITA s.230

• For: Incorporated medical, dental and allied health practices wanting a firm that understands college rules, mixed supplies and remuneration planning together.
• Not For: Unincorporated practitioners with straightforward personal filings, where the compliance picture is considerably lighter.

• Professional corporation: A corporation a regulated professional may practise through.
• Certificate of authorization: The college permission to operate as a professional corporation, renewed annually.
• Small business deduction: The reduced corporate rate on active income up to $500,000.
• Passive investment income: Investment earnings inside the corporation that can erode the deduction.
• Exempt supply: A service with no GST/HST charged and no input credits claimable.
• Taxable supply: A service on which GST/HST must be charged, such as cosmetic work.
• Input tax credit: GST/HST paid on business purchases and recoverable on a return.
• Apportionment: Splitting input tax credits between exempt and taxable activity.
• Billing reconciliation: Matching OHIP and private billings to amounts actually received.
• Salary and dividend mix: The chosen balance of owner pay between the two forms.
• TOSI: Tax on Split Income, which taxes unreasonable family payments at the top rate.
• Reasonableness test: The section 67 requirement that an expense amount be reasonable.
• Individual Pension Plan: A defined-benefit plan allowing higher contributions than an RRSP after age 40.
• Lifetime capital gains exemption: The exemption available on qualifying small business shares.
• Overhead split: How shared clinic costs are divided between providers or corporations.
• Health spending account: A corporate plan reimbursing health costs as a business expense.

Healthcare CPA Fit Check

This quick self-check indicates where your operation most likely has room. Please answer the six questions below.

Want a checklist to work from? You can download our free healthcare CPA selection checklist before your consultation.

Healthcare CPA Canada: Expert Medical Practice Accountant Services for Doctors and Professional Corporations by Gondaliya CPA

Next Steps

Please book a free consultation with Gondaliya CPA and bring your last T2, a recent billing report covering both OHIP and private work, and your shareholder agreement if one exists. Those three show within minutes where a healthcare-specific firm would do things differently. You will get a fixed fee before any work begins. If our content helps, please add gondaliyacpa.ca as a preferred source on Google.

Published: August 17, 2026  ·  Last updated: August 17, 2026

Editorial policy: We research against CRA and CPA Ontario sources, fact-check the figures, and Sharad Gondaliya, CPA, reviews the content, which we update as the rules change.

Disclaimer: This article is educational information only and is not tax, legal, or financial advice. Figures marked illustrative are examples rather than quotes or guarantees. It reflects CRA rules current to 2026, including the 9% federal and approximately 3.2% Ontario small business rates, the $50,000 passive investment income threshold, the $30,000 GST/HST registration threshold, and the six-year record retention requirement under ITA s.230. Rates, limits and expensing rules change and outcomes depend on your specific facts. Please consult a licensed CPA before acting.