CPA for physiotherapy clinics in Quebec.
A CPA practice that understands physiotherapy: structures for incorporated practitioners, associate management, insurer billing, and integrated year-end.
Why a generalist practice isn't enough.
A physiotherapy clinic typically combines a physiotherapist-owner with one or more other professionals — salaried physiotherapists, occupational therapists, massage therapists, kinesiologists. Contractual arrangements, GST/QST flows, and corporate structure all need to work together.
But with important nuances
Physiotherapy services rendered by a physiotherapist are exempt from GST/QST. But adjacent services — resold products, fitness programs, massage therapy services not rendered by a physiotherapist — may be taxable. The exact classification affects ITC/QST credits recoverable on purchases.
Employee, contractor, or incorporated practice
An associate physiotherapist can be an employee, independent contractor, or operate their own corporation and bill the clinic via a service agreement. Each arrangement has tax implications for both the clinic and the associate. The choice depends on risk level, control, and objectives.
Payment delays and accounts receivable
Many clinics bill insurers directly (CNESST, SAAQ, private insurance). Payment delays can be long, affecting cash flow and tax planning. Sound year-end accounts receivable management is essential for accurate financial statements.
Investments to plan
Physiotherapy equipment (assessment tables, rehab gear, shockwave devices) and clinic build-out represent significant investments. Tax depreciation, purchase timing, and financing affect corporate tax and cash flow.
One mandate. The full annual cycle coordinated.
- CSRS 4200 compilation engagement and year-end accounts receivable review
- Federal T2 and Quebec CO-17 corporate returns with SBD optimization
- Owner's T1/TP-1 personal returns (and spouse if shareholder)
- GST/QST analysis (exempt vs. taxable services) and applicable ITC/QST credits
- Year-end planning: salary vs. dividends, shareholder loan management
- Annual Opco/Holdco structure review as profit evolves
- Advisory on service agreements with incorporated associate physiotherapists
- Secure client portal communication throughout the year
Questions physiotherapy clinics owners ask.
Are physiotherapy services taxable or exempt from GST/QST?
Physiotherapy services rendered by a physiotherapist who is a member of the OPPQ are exempt from GST and QST. This means you don't charge tax on these services, but you also can't recover ITC/QST credits on associated expenses.
Caution: services rendered by other professionals in the same clinic (massage therapists, kinesiologists) may be taxable. Resold products (orthotics, specialty bandages) are also taxable. A precise analysis is necessary to determine the correct GST/QST status.
What is the best structure for a physiotherapy clinic with associates?
For a clinic with a physiotherapist-owner and salaried or contractor associates, a single Opco is often the right structure. A Holdco is added when accumulated profits justify a long-term tax planning vehicle.
If multiple physiotherapists are co-shareholders, a shareholder agreement and share class structure must be in place before joint incorporation. Structural decisions are harder to modify after the fact.
How does a service agreement with an incorporated associate physiotherapist work?
An associate physiotherapist can operate their own corporation and bill the clinic via a service agreement. For the clinic, payment to the physiotherapist's corporation is a deductible expense.
This structure allows the associate to incorporate their income and optimize their own tax position. But CRA and Revenu Québec require the relationship to be genuinely contractual (not a disguised employment). A lawyer-drafted agreement, CPA-reviewed, is essential.
How do you handle insurer billing (CNESST, SAAQ, private insurance) for accounting?
Revenue from third-party billing (CNESST, SAAQ, private insurance) is recognized on an accrual basis: revenue is recognized when the service is rendered, not when payment is received.
Year-end accounts receivable must accurately reflect services rendered but not yet collected. Good monthly bookkeeping simplifies this calculation. Payment delays from some insurers (sometimes 60-90 days) affect cash flow without changing tax payable.
When should I incorporate my physiotherapy clinic?
Incorporation becomes relevant when your net professional income comfortably exceeds your annual personal need. If every dollar earned is needed for lifestyle, incorporation adds cost without delivering the main benefit — tax deferral on retained earnings.
For a clear decision, compare your annual net profit to your home cash needs. The gap is what can stay in a corporation. If that gap is significant, incorporation becomes a useful tool.
How much does a CPA cost for a physiotherapy clinic?
JVS CPA's integrated annual mandate — compilation, T2/CO-17, personal returns, planning, and coordination — is priced at a fixed annual fee based on complexity (Opco only vs. Opco/Holdco), number of associated professionals, and GST/QST complexity.
For a precise quote, contact us.