Repositioning a Medical Office’s Processes to Improve Financial Health

Rochester, New York

Client Overview

This Medical Office is a family-owned, owner-operated company that has a very successful business. The office operates in a highly specialized medical field.


The Opportunity

The Medical Office was incurring large tax amounts due at the ownership level. They engaged RDG & Partners to provide tax consulting and advisory services. With this engagement we addressed the key issues impacting the owner’s overall tax due and the company’s profitability, with a focus on the following:

  • Assessing existing financial statements and determining different options to reduce tax while retaining wealth
  • Reviewing bookkeeping procedures to verify the accuracy of the client’s books and providing suggestions to improve the quality
  • Educating the owners on the financial statements

This engagement has allowed owners to retain significant wealth while deferring the tax due.

The Solution

The Medical Office produces a high margin service and as a result, the business is producing taxable income for the owners. RDG + Partners reviewed the clients’ books and provided the necessary adjustments and education to the owners allowing them to gain an understanding of the business’s financial health. A periodic bookkeeping review was set up to keep the owners aware of the finances.

RDG + Partners and the owners discussed possible tax-saving strategies. It was suggested a defined benefit plan with a profit-sharing component would be most beneficial. By utilizing this retirement method, the owners can put some of the excess profits towards their future retirement. This will allow them to take a tax deduction in the current year.


The Outcome

As a result of the engagement with RDG + Partners, the Medical Office achieved positive outcomes. RDG’s ability to produce accurate and timely financials allows the owners to be able to control their future retirement and reduce the tax amount due each year. This engagement has allowed owners to retain significant wealth while deferring the tax due.