CPA for chiropractic clinics in Quebec.
A CPA practice that understands chiropractic: exempt services and taxable products, equipment and imaging, and multi-practitioner structures.
Why a generalist practice isn't enough.
A chiropractic clinic combines GST/QST-exempt care with sales of taxable products (orthotics, cervical pillows, supplements). This dual nature requires precise GST/QST management. Add specialized equipment (adjustment tables, imaging) and multi-chiropractor arrangements, and the accounting complexity is real.
Two-track GST/QST management
Chiropractic care rendered by a chiropractor who is a member of the OCQ is exempt from GST/QST. But sales of products — orthotics, cervical pillows, supplements, equipment — are taxable. The clinic must correctly separate these revenues to calculate recoverable ITC/QST credits on purchases.
Investments to depreciate
Adjustment tables, rehab equipment, x-ray equipment where applicable: the equipment investment in a chiropractic clinic is significant. The choice between cash purchase, financing, and capital lease affects CCA, ITC/QST credits, and cash flow.
Service agreements or employees
Many chiropractic clinics operate with a chiropractor-owner plus associates. These associates can be employees, contractors, or operate their own corporation and bill via a service agreement. Each structure has distinct tax implications.
Year-end count
A clinic with product sales must perform a year-end inventory count. The balance directly affects cost of goods sold and taxable profit. Monthly inventory management simplifies this process and improves statement accuracy.
One mandate. The full annual cycle coordinated.
- CSRS 4200 compilation engagement with product inventory count
- Federal T2 and Quebec CO-17 corporate returns with SBD optimization
- Chiropractor-owner T1/TP-1 personal returns (and spouse if shareholder)
- GST/QST management: breakdown of exempt services vs. taxable products, applicable ITC/QST credit calculations
- Annual planning: salary vs. dividends, shareholder loan management
- Opco/Holdco structure review as profit evolves
- Advisory on service agreements with associate chiropractors
- Secure client portal communication throughout the year
Questions chiropractic clinics owners ask.
Are chiropractic services exempt from GST/QST?
Chiropractic care rendered by a chiropractor who is a member of the OCQ is exempt from GST/QST. But sales of accessory products — orthotics, cervical pillows, supplements, personal equipment — are taxable.
This dual nature means the clinic must manage two distinct revenue streams. ITC/QST credits on purchases may be partially recovered based on the proportion of taxable revenue. Sound accounting breakdown is essential.
How do you manage the separation of exempt services and taxable products?
The separation occurs at the level of client invoicing and bookkeeping. Chiropractic service revenue and product sales revenue must be tracked in separate accounts.
On the expense side, some expenses are entirely tied to taxable products (purchase of resold products) and allow full ITC/QST credit recovery. Others are mixed (rent, electricity) and require a proportion calculation for ITC/QST. Monthly tracking simplifies quarterly GST/QST filings.
What structure works for a clinic with multiple chiropractors?
Several structures are possible. The simplest: one chiropractor-owner with others as salaried employees. More flexible: service agreements with individually incorporated chiropractors. More complex: co-ownership of the clinic.
The choice depends on each chiropractor's investment level, desired risk sharing, and long-term planning. A well-drafted agreement avoids future conflicts.
How do you handle x-ray equipment in a chiropractic clinic accounting-wise?
X-ray equipment is a significant investment (often $50,000+). Tax depreciation follows the applicable asset class. The choice between cash purchase, financing, and capital lease affects annual CCA, cash flow, and ITC/QST credits at purchase.
Maintenance, licensing, and continuing education are deductible expenses to be properly tracked.
When should I incorporate my chiropractic practice?
Incorporation becomes relevant when your net professional profit comfortably exceeds your annual personal needs and you can retain earnings in the corporation. If all your profit is needed personally, the main benefit — tax deferral — is largely theoretical.
A simple analysis: your home cash needs versus your net clinic profit. The gap is what can stay in a corporation. If that gap is significant and growing, incorporation becomes a useful tool.
How much does a CPA cost for a chiropractic clinic?
JVS CPA's integrated annual mandate is priced at a fixed annual fee based on complexity: Opco only vs. Opco/Holdco, number of associated chiropractors, product sales volume (which affects GST/QST management).
For a precise quote, contact us.