Accounting & Tax
For Medical Professionals in California

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Running a private medical practice is more than patient care—it’s a business. Whether you’re a dentist, therapist, physician, surgeon, or veterinarian, your practice faces complex financial, regulatory, and tax challenges. At Steve CPA, we specialize in helping medical professionals streamline their accounting, stay compliant, and make smart financial decisions.

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Why Medical Practices Need Specialized Accounting

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Healthcare practices face unique financial demands:

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• Complex billing and insurance reimbursements

• Strict privacy and compliance regulations

• Variable patient revenue and collections

• Specialized tax rules and deductions

• Revenue recognition and contract management

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We understand the nuances of your industry and provide tailored solutions that help you focus on care—while we handle the numbers.

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QuickBooks Setup for Medical Practices

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We help you set up and optimize QuickBooks Online or Desktop to meet the specific needs of your practice:

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✅ Create a customized Chart of Accounts for medical services
✅ Track income by provider, procedure, or location
✅ Automate payroll and expense tracking
✅ Generate financial reports for strategic planning​

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Revenue Recognition for Healthcare Providers

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Under updated accounting standards, medical practices must recognize revenue based on performance obligations and collectibility—not just billing. We help you:

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• Identify enforceable contracts with patients

• Estimate variable consideration (e.g., insurance adjustments, price concessions)

• Apply the correct revenue recognition model

• Track and report patient service revenue accurately

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This ensures your financial statements reflect reality—and keeps you compliant with GAAP and IRS rules.

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California-Specific Tax Rules for Medical Practices

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California imposes unique requirements on healthcare providers:

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• Professional Medical Corporations (PMCs) are required for most licensed providers; LLCs and general corporations are not permitted for medical practices

• Corporate Practice of Medicine Doctrine prohibits non-physicians from influencing clinical decisions

• Sales & Use Tax may apply to certain retail activities (e.g., selling dental products or supplements)

• Franchise Tax applies to PMCs, even if income is low

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We help you choose the right entity structure, stay compliant with CDTFA and Medical Board rules, and minimize your tax burden.

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Maximizing Deductions & Tax Planning

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We identify and optimize deductions specific to medical practices:

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• Medical equipment and supplies

• Continuing education and licensing fees

• Malpractice insurance

• Office rent and utilities

• Staff salaries and benefits

• EMR/EHR software and IT support

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We also help you plan for retirement, manage cash flow, and prepare for expansion or sale.

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Additional Services for Healthcare Providers

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• Bookkeeping & Payroll: Clean books and compliant payroll for staff and associates

• Entity Structuring: Business structure review for tax efficiency

• Financial Reporting: Monthly, quarterly, and year-end reports for decision-making

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Also Supporting W-2 Medical Professionals

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Not every healthcare provider runs their own practice—and we’re here for you too. If you're a W-2 employee working in a hospital, clinic, or group practice, you still face unique financial and tax challenges:

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• Navigating multiple income sources (e.g., bonuses, moonlighting, locum tenens)

• Understanding retirement plan options (403(b), 457(b), etc.)

• Managing restricted stock units (RSUs) or sign-on incentives

• Planning for student loan repayment and tax-efficient savings

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We help employed medical professionals optimize their tax position, plan for long-term financial goals, and stay compliant with California and federal tax laws.

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Tax Planning for Resident Doctors

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Residency is demanding—and so is managing your finances on a limited income. We offer tailored support for resident doctors to help you build a strong financial foundation early in your career.

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Common Tax Tips for Residents:

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✅ Student Loan Interest Deduction: Up to $2,500/year if income limits are met
✅ Education Credits: Lifetime Learning Credit may apply for continuing education
✅ Retirement Planning: Start contributing to retirement accounts early

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We also help residents understand their first W-2, track expenses, and prepare for the transition to attending-level income.

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Let’s Build a Financially Healthy Practice

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Whether you’re launching a new clinic or managing a thriving practice, your financial systems should support your growth—not slow you down.

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📞Ready to take control of your practice’s financial health?

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Contact Steven Mayorga, CPA today and let’s create a financial strategy that supports your care, compliance, and success.