Industry

Veterinary

Financial Guidance for the Business Behind the Practice

A veterinarian in scrubs with a golden retriever

Veterinary practices combine professional services with payroll, inventory, equipment, pharmaceuticals, facilities, and often significant capital investment.

Strong accounting helps practice owners understand not only revenue, but what it costs to deliver care.

A veterinarian working at a laptop, a colleague and a dog behind her

Practice Accounting

We can help track:

Service revenue
Practice-management system activity
Accounts receivable
Payroll
Associate compensation
Pharmaceuticals
Medical supplies
Retail inventory
Laboratory expenses
Equipment
Fixed assets
Financial statements

A veterinary technician checking shelves of medicines with a tablet

Inventory & Cost Management

Pharmaceuticals, medical supplies, food, and retail products can represent significant costs.

Consistent inventory procedures can help identify purchasing trends, waste, shrinkage, pricing issues, and changes in margins.

A woman working at a laptop in a veterinary clinic, staff and a dog behind her

Payroll & Provider Compensation

Veterinary practices may have veterinarians, technicians, assistants, administrative staff, and practice owners with different compensation structures.

We help ensure payroll information is properly reflected in the accounting records and evaluate owner compensation from a tax perspective.

A veterinarian pointing at an ultrasound screen in a clinic

Equipment & Depreciation

Practices may invest significantly in:

Diagnostic equipment
Surgical equipment
Imaging technology
Computers
Furniture
Vehicles
Leasehold improvements

We evaluate capitalization and depreciation treatment, including potential Section 179 and bonus depreciation opportunities.

A veterinarian and a colleague reviewing documents at a laptop

Practice Acquisition & Sale

Buying or selling a veterinary practice can create significant accounting and tax consequences.

Areas requiring consideration can include:

Equipment
Inventory
Accounts receivable
Goodwill
Customer relationships
Noncompete agreements
Purchase-price allocation
Asset vs. equity transaction structure

An adviser and a business owner in discussion at a desk covered with charts

Business Advisory

We help owners analyze:

Revenue trends
Associate productivity
Staffing costs
Inventory costs
Margins
Equipment purchases
Expansion
Cash flow
Practice acquisitions
Succession

What We Help You Manage

Practice Revenue
Payroll
Inventory
Equipment
Taxes
Profitability
Acquisitions
Cash Flow

Frequently Asked Questions

Can a veterinary practice elect S corporation taxation?

Potentially. Profitability, owner compensation, payroll, state rules, and other factors should be evaluated.

How should veterinary inventory be tracked?

Practices should establish consistent procedures for recording and monitoring pharmaceuticals, supplies, food, and retail products that materially affect financial reporting.

Can veterinary equipment be depreciated?

Generally, yes. Qualifying assets may also be eligible for accelerated deductions depending on applicable tax law.

What tax issues arise when buying a practice?

Purchase-price allocation, goodwill, equipment, inventory, financing, and transaction structure can all affect taxation.

Should practice owners review financial statements monthly?

Monthly financial statements can help identify changes in revenue, payroll, inventory costs, operating expenses, and cash flow before problems become larger.

Can you work with my practice-management system reports?

We can use information from practice-management systems as part of the accounting and reconciliation process, depending on the system and records available.

Services

How we work with veterinary clients

The service lines our clients in this sector call on most.

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Work with a CPA firm that understands the accounting, tax, and business considerations unique to your industry.

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