Year-End Closing for Doctors and Medical Practices in Cyprus
· 6 min read · Tsquared Services
Why medical practices need a clear close
Medical income often arrives from several sources: GHS payments, private patients, insurers and hospital arrangements. Each has its own timing and documentation. A proactive year-end routine makes sure all fees are captured, expenses are properly supported and tax and contribution obligations are met on time.
Reconcile GHS and private income
Compare GHS remittance statements with amounts received in your bank account and investigate any differences. Do the same for insurers and private patient payments, including card terminal settlements. Fees earned in December but paid in January should be recorded in the correct year in practice accounts. Missing or duplicated income is one of the most common errors in medical bookkeeping.
Separate practice and personal costs
Clinic rent, medical supplies, professional insurance, licence fees, continuing education and staff costs are generally deductible. Personal expenses are not. If a car, phone or home office is used partly for the practice, keep a reasonable record of business use so the deductible portion can be supported.
Update the equipment register
Medical equipment is often expensive and is usually depreciated over several years with capital allowances. Record new purchases with invoices and dates, note any items disposed of and confirm that leased equipment is treated correctly. An up-to-date register ensures you claim every allowance available.
Staff, contributions and payroll
If you employ nurses, receptionists or other staff, reconcile payroll to Social Insurance and GHS submissions. As a self-employed professional, confirm your own contributions are up to date, since arrears can carry surcharges.
Review your structure
As income grows, it may be worth comparing practising personally with operating through a company. The answer depends on income level, plans for partners or expansion and your personal circumstances, so review it with your accountant before the year ends.
Key takeaways
- Reconcile GHS remittances and private fees to bank receipts.
- Record business-use portions of mixed expenses.
- Keep the equipment register current to claim allowances.
- Confirm self-employed contributions have no arrears.
Best practices checklist
- Use a dedicated practice bank account and card.
- Download GHS statements monthly.
- Keep receipts for courses, licences and insurance together.
- Review practice structure annually as income grows.
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This article is general information, not personal tax advice. Contact us for advice on your situation.