Tax Advisory for the Healthcare Sector

Healthcare and social care businesses and practices face a distinct mix of tax, payroll and financial management issues. We advise doctors and dentists, psychotherapists and other healthcare professionals, as well as home-care and social service providers. We are also happy to advise veterinarians on general tax matters.

Our fully digital setup allows us to work with clients across Germany. Personal, reliable advice remains at the heart of our work, with regular communication on the tax and financial matters affecting your practice or business.

Tax Advice Tailored to Your Sector
A medical practice, a psychotherapy practice and a home-care provider operate in very different ways. Their structures, services and commercial environment differ, and that matters for tax, payroll and accounting.

For medical and dental practices, relevant issues may include the VAT treatment of particular services, investments, partnership arrangements or changes to the ownership and structure of the practice. For home-care and social service providers, staffing, payroll, cash flow and financial performance often play a particularly important role.

We therefore look at accounting, payroll and tax advice as connected parts of the same picture rather than as isolated tasks. Up-to-date figures make it easier to identify tax and financial developments at an early stage.

Who We Work With
Doctors and Dentists
We provide ongoing tax support to doctors and dentists in private practice. This includes financial accounting and payroll, cash-basis accounts (EÜR – Einnahmen-Überschuss-Rechnung) or annual financial statements, as applicable, together with the relevant business and personal tax returns.

We also advise on tax matters arising from investments, the services offered by the practice or changes to its structure. When establishing or acquiring a practice, bringing in additional partners or planning for succession, it is important to consider the tax implications before key decisions are made.

Psychotherapists and Other Healthcare Professionals
For psychotherapists and other healthcare professionals, the starting point is usually reliable ongoing accounting and tax compliance. As a practice grows, staffing, investment decisions and financial performance often become more important.

With up-to-date digital accounting, practice owners can see how income, costs and cash flow are developing throughout the year – not just when the tax return is due.

Home-Care and Social Service Providers
Home-care services, community nursing, psychosocial support and other community-based social services are often labour-intensive. That makes payroll, staffing costs and day-to-day financial control especially important.

Good management information, clear cost structures and regular cash-flow monitoring make it easier to identify trends and respond to them early. Particularly in a growing business, accounting should do more than simply produce the figures needed for tax compliance.

We combine ongoing tax advice with current financial information that helps business owners keep track of how the business is performing.

Ongoing Tax and Accounting Support
Reliable tax support starts long before the year-end accounts or tax return. We work with current data throughout the year and organise the process digitally from the outset.

Financial Accounting
We handle financial accounting on an ongoing, fully digital basis. Documents and data are submitted electronically, so current figures are available for both tax compliance and day-to-day financial management.

The accounting records are also used to prepare the EÜR or annual financial statements and the relevant business tax returns.

Payroll
Many businesses in the healthcare and social care sector employ staff, so payroll is a central part of the engagement.

We integrate payroll with the wider accounting and tax process, supporting accurate payroll calculations, required filings and a clear view of staffing costs.

Annual Financial Statements, EÜR and Tax Returns
Depending on the legal form and structure of the business, we prepare either an EÜR or annual financial statements from the ongoing accounting records, together with the relevant business tax returns.

We are also happy to prepare the personal income tax return of the practice or business owner, allowing business and personal tax matters to be considered together where appropriate.

Ongoing Tax Advice
Tax issues are easier to manage when they are addressed during the year rather than after the year has ended.

Our work therefore goes beyond filing returns and meeting compliance deadlines. We discuss investments, changes in the business and unusual transactions early enough for the tax consequences to be considered before decisions are made.

Sector-Specific Tax Issues
Healthcare Practices and Professionals
Doctors, dentists, psychotherapists and other healthcare professionals may face additional tax questions alongside their routine compliance obligations.

These may include the VAT treatment of different services, investment in premises or equipment and changes to the ownership or structure of the practice. Tax consequences should also be considered early when setting up or acquiring a practice, entering into a partnership or other practice arrangement, or planning for succession.

Not every issue is relevant to every practice. The advice therefore needs to reflect how the individual practice is structured, what services it provides and how it is developing.

Home-Care and Social Service Providers
For home-care and social service providers, staffing costs, other operating costs and cash flow often have a particularly strong impact on the business.

Current accounting and reliable payroll provide the information needed to understand staffing costs, cost structures and overall financial performance. Depending on the size and organisation of the business, additional management reports or cost-centre accounting may also be useful.

Investment, growth and changes to the business structure should be considered in the wider context of cash flow, tax implications and the long-term financial position of the organisation.

Understanding the Numbers and Managing the Business
Accounting is necessary for tax compliance, but it should also help you run the business.

Up-to-date figures make it easier to see what is changing. How are revenue and costs developing? What is happening to staffing costs? What effect will planned investments have? What does the current cash-flow position look like?

For healthcare practices and labour-intensive businesses in particular, these are not questions to leave until the end of the year.

Our business advisory work uses current financial data to support practical decisions, not to produce reports for their own sake.

Depending on the business and the scope of our work, the focus may include cost trends, cash flow, investment decisions and overall financial performance.

Starting, Growing and Planning for Succession
Tax advice becomes particularly important when a practice or business is changing.

When a practice or business is established or acquired, the choice of legal structure, planned investments and financing arrangements can all have tax consequences. These are best considered before decisions are made.

Growth, the admission of new partners and changes to the ownership or business structure can also create new tax questions.

When succession or a sale is being planned, we advise on the tax aspects involved. Where legal, financing or other specialist advice is required, we involve or coordinate with the relevant professional advisers at an early stage.

Digital Processes – Personal Advice
Our firm works entirely digitally. Documents, reports and other information are exchanged electronically, using DATEV's digital solutions in particular.

This allows us to work efficiently with clients throughout Germany.

Digital working does not mean impersonal advice. We discuss questions and decisions directly by telephone, video call or through the agreed digital communication channels.

Structured digital processes and personal advice go hand in hand.

Digital tax advisory – personal, reliable, nationwide.

Changing Your Tax Adviser
A change of tax adviser is also possible for an established practice or business, provided the handover is organised properly.

Before we take over, we review the current status of the work, any upcoming or outstanding deadlines and the agreed scope of our services. We then coordinate the transfer of the necessary data with the previous tax adviser and move the ongoing work into our digital processes.

A complete handover of the accounting, payroll and year-end data is essential if we are to continue the work reliably.

If you are looking for a digital tax firm for your practice or business in the healthcare or social care sector that combines ongoing tax advice, financial accounting and payroll, an initial meeting gives us the opportunity to see whether our services and working approach are a good fit for your requirements.

Arrange a free 15-minute introductory meeting to discuss your requirements and the scope for working together.