If you are seriously considering the positive benefits of a practice restructure or changing accountants who better understand your needs, we hope when you click on this link it will help.
| Tick item # | When | What’s Next? | Who | Solution | |
| 1 | Week 1 | H&L staff assigned | See who is looking after you. Staff introduced via video teleconference and a brief planning and implementation overview is discussed including establishing contact persons with the practice normally the practice manager | H&L | Who is Really Looking After You? |
| Signed engagement letter received by Health and Life | New practice set up/restructure implementation checklist issued | Practice to up date implementation checklist | |||
| 2 | Week 1 to 2 | Products Issued | The following structures, agreements and system templates are issued. Each individual client’s need will vary significantly | H&L | Products |
| Payment received for templates and software products. Products are issued to the practice. |
| H&L | |||
| 3 | Week 3 to 7 | Establish new legal structure(s) and start date. | New structures are usually set up at the beginning of a financial year quarter. | H&L | New Practice or Restructure |
| This can be done in 72 hours if clients return signed documents immediately | For each entity where applicable Australian Securities Commission and business name lodgement, ATO registration for TFN, ABN, GST, PAYG, Workcover, Super Employee Declarations and Payroll Tax registration.This is a critical step for establishing new practice bank accounts a single merchant facility, re-directing Medicare and Third party insurer and payer payments, suppliers, executing practice agreements and implement systems. This includes issuing template invoicing and letterhead disclaimers. | ||||
| 4 | Week 4 to 7 | Prepare 5 year financial projections | This assists practices with budgeting and cash flow management. Including providing a brief valuation of the practice if managed correctly. | To do this exercise properly Read on… High Performance Management Planning | |
| 5 | Week 3 to 12 | Establish new chart of accounts for each entity | Up to 7 entities are being created at one time and up to 8 chart of accounts (including the billings trust account) are established. The practice manager and book keeper needs to be trained on the new accounting procedures. | H&L | New Practice or Restructure |
| 6 | Week 12 to 30 | Tenant Doctor/Service | Signed and executed | H&L | Business & Practice Agreement Template |
| Contractor Agreements | Template agreements are modified by the practice first, then issued to all providers after H&L modifies and checks any new terms and conditions that may not be commercially appropriate. | ||||
| 7 | Week 6 to 12 | Doctors Pay Calculator | This systems implementation and training can only be completed when signed copies of service agreements are sent back to H&L. | H&L | Software – Doctors Pay(Service Fee) Calculator TM Program |
| Set up | H&L prepares data files and processes the first pays using the two new chart of accounts for the service trust and billings trust account are set up. | ||||
| 8 | Week 12 to 20 | Doctors Pay Calculator Training | In the first month, this training is performed using your practice computer system via a video teleconference which can be recorded for future reference | ||
| Your practice staff is trained using live data from the H&L prepared payroll data. | In the second month the Practice Manager prepares the payroll with assistance. In the third month the Practice Manager performs the payroll with little or no assistance depending on confidence. At the end of the financial year H&L will finalise all calculations as part of its normal year end activities for accounting clients and if requested by consulting clients. | H&L | Seminars and Training | ||
| 9 | Week 2 to 12 | Employment Agreements | Transfer staff into the new entity. New award compliant employment agreements need to be executed and signed with each employee. | H&L | Business & Practice Agreement Template |
| 10 | Week 12 to 30 | Practice Ownership Agreement | This agreement is executed and signed between group practice owners. | H&L | Business & Practice Agreement Template |
| 11 | Week 12 to 30 | Practice Ownership Agreement | This agreement is executed and signed between group practice owners. This may be required earlier if banks use the property as security. | H&L | |
| The template agreements are modified by the practice first. H&L then checks any new terms and conditions that may not be appropriate before each owners advisers vets the document. Then the tenant and their advisers vet the document. | |||||
| 12 | Week 12 to 42 | Property leases | Head leases must be executed and signed before any legal sub leasing arrangements can be executed and signed. H&L conducts a national tendering process to co-located diagnostic, pharmacy, specialist and allied health services. A combination of fixed and percentage of gross receipts leases that are compliant with new anti-kick back rules. The template agreement is modified by the practice first. H&L then checks any new terms and conditions that may not be appropriate before each owners advisers vets the document. | H&L | Business & Practice Agreement Template |
| 13 | Week 2 to 12 | Asset Purchase Agreement | This is used to transfer from the old practice entity all its assets, rights and obligations to the new entity. This ensures any new owners have clear title to the practice. This document attracts stamp duty.This document is usually completed with an independent valuation and completed when the books of the old entity are closed. | H&L | Business & Practice Agreement Template |
| 14 | Week 55 to 80 | Financial Statements | It takes 12 months of trading before the full financial results of a restructure is clear. Only then can an accurate financial performance. benchmark and The Good, Bad & Ugly report can be completed. Accounting costs are high winding up old entities as well as preparing final financial statements and tax returns for the old entities. | H&L | The Annual Practice Traffic Light Reporting Cycle |
Statutory Compliance Mandatory
*Health & Life can assist in the initial set up
** Board means a meeting of practice owners. No Board exists for a single owner operator. Practice and property ownership agreements are not required until another owner joins the practice or buys into a property. For succession planning, good systems and documentation is mandatory to obtain a fair sale.
