It’s that time of year again, when university acceptance letters are being mailed out. If you’re waiting on bated breath, good luck – we hope it comes soon!
Being a post-secondary student is an incredibly exciting time, but it can also be financially challenging. Professional students may find it even more difficult as their peers are moving on into lucrative jobs while they continue to be plagued by tuition bills. You might even be starting a family before your career gets off the ground.
At MMT Chartered Professional Accountants, we’re specialized in tax and financial planning services that can help keep you on track as you study medicine, and set you up with a solid foundation when you’re ready to open your first practice. From the moment you get your acceptance letter to medical school right through to planning for your retirement, we’ll be with you every step of the way.
Here’s how we can help you get your finances in order.
1. Tax planning
Tax planning is a big thing for students, who are eligible for all sorts of deductions and credits. To ensure you pay the least amount of taxes possible, it’s ideal to have expert tax planning advice so you don’t miss out on any opportunities to save.
Just a few of the ways you can reduce your tax burden are by claiming tuition tax credits for eligible tuition fees, education amount tax credits if you’re in full-time study, textbook tax credits, student loan interest tax credits, and credits for your moving expenses or childcare. If your accountant isn’t ensuring you’re claiming everything you’re eligible for, you’re leaving money on the table unnecessarily.
2. Budgeting
Medical school is exceptionally expensive, with tuition fees over $14,000 in the 2021/2022 academic year. These fees don’t even cover all the other costs associated with medical schools, like textbooks, equipment, living expenses, and other fees. Those expenses can also add up significantly.
Working within your budget can give you greater control over your finances, reducing your stress and helping you achieve your goals. Getting expert support in this area can be an invaluable investment.
An accountant can help you with strategies to create an effective budget that avoids overspending. If you’re struggling with debt (as most students are), we can devise a plan to keep your finances on track until you can pay off your debts. And as you look towards the future, we’ll develop a savings plan to meet your long-term financial goals, like buying a house or opening your own practice.
3. Generalized financial planning
If you think medical school is demanding, just wait until you’re a busy medical professional. If you’ve set up strong financial practices early, you’re more likely to stay on track for the long-term by developing good habits and increasing your financial literacy.
Even retirement and investment planning can be tricky for medical professionals, who don’t typically have a pension plan. Set up a Registered Retirement Savings Plan and make sure your contributions are adequate to support your future retirement goals and anticipated quality of life.
4. Business planning
You’ll also benefit from support when it comes to building your business. You may soon find yourself in a position of seeking investors, setting up a partnership, or buying real estate to house your clinic, and a chartered professional accountant can help in all of these areas.
We can provide guidance on how to structure your business, manage your finances, and comply with tax laws and regulations.
5. Accounting support
An accountant can help students with bookkeeping, financial statement preparations and other accounting tasks, which can be particularly helpful for medical professional students who intend to run their own business in the near future.
Once you have an established rapport with an accountant, it’ll be easy to transition to the kind of support you need to build your business. This could include guidance on entity selection as you determine the most appropriate legal structure for your business. You’ll also benefit from financial forecasting, like projection for your revenue, expenses, cash flow, and profitability.
As a business owner, you’ll want to get expert advice to continue maximizing tax deductions and credits, and complying with laws and regulations. If you’re considering selling or merging, you may even need support with business valuation.
Medical school is a rigorous and demanding program that requires a high level of commitment and dedication to succeed. If you’ve just received your acceptance letter, congratulations! We hope it will be a rewarding and fulfilling experience and prepare you well for a career in which no doubt you’ll have a positive impact on many lives.
Find out how MMT Chartered Professional Accountants can help you with your finances as you embark on this exciting journey. We’ve accumulated years of expertise providing financial advice to medical professionals like you, and we can help set you up for a healthy financial future. Start getting your finances in order by contacting us today, and feel confident that even if nothing else about medical school is easy, managing your finances can be.
