CPA for optometry clinics in Quebec.
A CPA practice that understands optometry: professional services and eyewear, inventory management, and multi-optometrist structures.
Why a generalist practice isn't enough.
An optometry clinic is typically a hybrid business: professional services (eye exams) exempt from GST/QST, and sales of glasses, contact lenses, and accessories that are fully taxable. Eyewear inventory management, partial GST/QST, specialized equipment, and arrangements between optometrists make the accounting more complex than many other health professions.
Two-track GST/QST management
Optometry services (eye exams by an optometrist who is a member of the OOQ) are exempt from GST/QST. But sales of glasses, contact lenses, solutions, and accessories are fully taxable. The clinic must manage these two streams separately for GST/QST filings and ITC/QST credit calculations.
The main accounting challenge
Inventory of frames, lenses, and accessories can represent a significant portion of assets. Year-end count, correct valuation (cost or net realizable value if lower), and managing obsolete products directly affect taxable profit. Monthly inventory management simplifies the annual exercise.
Phoropters, autorefractors, OCT
Modern optometry equipment (automated phoropters, autorefractors, OCT, retinal photography) represents a major investment. Tax depreciation, ITC/QST credits at purchase, and replacement planning are decisions to coordinate with your annual corporate planning.
Independent or affiliated optometrists
Many optometrists operate in partnership or affiliated with a retail chain (which manages the eyewear). These arrangements affect corporate structure: who owns the equipment, who bills for services, who sells products. The structure must reflect operational reality.
One mandate. The full annual cycle coordinated.
- CSRS 4200 compilation engagement with eyewear inventory count and valuation
- Federal T2 and Quebec CO-17 corporate returns with SBD optimization
- Optometrist-owner T1/TP-1 personal returns (and spouse if shareholder)
- GST/QST management: breakdown of exempt services vs. taxable eyewear, ITC/QST credit calculations
- Annual planning: salary vs. dividends, shareholder loan management
- Opco/Holdco structure review as profit evolves
- Advisory on partnership arrangements or chain affiliation
- Secure client portal communication throughout the year
Questions optometry clinics owners ask.
Are optometry services exempt from GST/QST?
Optometric exams rendered by an optometrist who is a member of the OOQ are exempt from GST/QST. But sales of glasses, contact lenses, solutions, accessories, and related services (paid adjustments, extended warranties) are taxable.
This hybrid structure requires precise GST/QST management: revenue separation, proportional ITC/QST credit calculations on mixed expenses (rent, electricity), and compliant quarterly filings.
How do you handle eyewear inventory in accounting?
Eyewear inventory is typically the largest current asset of an optometry clinic. The accounting method (acquisition cost, FIFO, or weighted average), year-end physical count, and correct valuation directly affect corporate profit.
Managing obsolete products, markdowns, and supplier returns must be documented. Many clinics use an integrated POS/inventory management system to simplify monthly tracking and annual reconciliation.
What structure works for an optometry practice with multiple optometrists?
Several structures are common. The simplest: one optometrist owning the clinic with others as salaried employees. More complex: co-ownership of a corporation holding premises and equipment, with each active optometrist as a shareholder. Even more flexible: service agreements with individually incorporated optometrists.
The choice depends on investment level, risk sharing, and long-term objectives. Agreements must be properly drafted from the start.
How does affiliation with an eyewear chain work accounting-wise?
Affiliations with retail chains (which manage the eyewear while the optometrist provides professional services) take several forms: sublease, franchise, revenue-sharing agreement. Each form has distinct accounting implications.
In many cases, the optometrist operates through their own corporation and bills the chain or clients according to an agreement. GST/QST treatment varies based on structure. A CPA review before signing avoids later problems.
When should I incorporate my optometric 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, incorporation adds cost without delivering the tax deferral benefit.
A simple analysis: your annual home cash needs versus your net practice profit. The gap is what can stay in a corporation. For growing optometrists with inventory management, incorporation often becomes relevant early in the career.
How much does a CPA cost for an optometry clinic?
JVS CPA's integrated annual mandate is priced at a fixed annual fee based on complexity: Opco only vs. Opco/Holdco, eyewear inventory volume, number of associated optometrists, affiliation type (independent vs. chain).
For a precise quote, contact us.