The Annual New Podiatry Practice Review Checklist

Running a podiatry practice means you are the doctor, the manager, and the CFO. The first year is a blur of patients, equipment, and lease agreements. But as the calendar turns, you need a structured review of your financial and tax position. This checklist walks you through the essential annual review items for a new podiatry practice, with concrete steps you can take this week.

1. Reconcile Your Books

Your profit and loss statement is only as good as your bookkeeping. Before you do anything else, make sure every transaction is recorded.

• Match bank and credit card statements to your accounting software (QuickBooks, Xero, or FreshBooks). Flag any discrepancies.
• Categorize expenses correctly. Common podiatry categories include: medical supplies, equipment leases, lab fees, professional liability insurance, continuing education, and office rent.
• Review owner’s draws vs. salary. If you are an S-corp, you must pay yourself a reasonable salary (typically $120,000 to $180,000 for a practicing podiatrist in 2026). If you are a sole proprietor, your draws are not deductible, but they affect your basis.

Action this week: Set aside 2 hours to go through your last three months of bank statements. Correct any misclassified expenses.

2. Verify Your Tax Deadlines and Structure

Your business structure determines your tax forms and deadlines. Confirm you are on track.

• Sole proprietorship (Schedule C): File by April 15, 2026. Pay estimated taxes quarterly (April 15, June 15, Sept 15, Jan 15).
• S-corp (Form 1120-S): File by March 15, 2026. Extend to Sept 15 if needed. Payroll taxes are due monthly or semi-weekly.
• LLC (partnership or single-member): Partnership returns (Form 1065) due March 15. Single-member LLCs file Schedule C like sole proprietors.
• C-corp (Form 1120): Due April 15, with extension to Oct 15.

Action this week: Check your calendar for the next estimated tax payment. If you missed a deadline, pay as soon as possible to minimize penalties.

3. Maximize Deductions Specific to Podiatry

New practices often miss deductions that are unique to their field. Review these areas.

• Medical equipment and depreciation: You can deduct up to $1,250,000 in Section 179 for equipment like digital X-ray machines, ultrasound units, and surgical instruments. Bonus depreciation is 80% for 2026. If you financed equipment, the interest is also deductible.
• Office lease and improvements: Rent is fully deductible. Leasehold improvements (e.g., build-out for treatment rooms) are depreciated over 15 years, but you may qualify for a Section 179 deduction if the improvement is qualified.
• Lab fees and supplies: Casting materials, orthotics, and wound care supplies are all deductible. Track your inventory and write off any obsolete items.
• Professional liability insurance: Premiums for malpractice insurance are deductible. Expect to pay $8,000 to $15,000 per year for a new podiatrist.
• Continuing education: Travel, lodging, and registration for conferences like the APMA Annual Scientific Meeting are deductible. Keep receipts and a log of the business purpose.

Action this week: List every piece of equipment you bought this year. Check if you claimed Section 179 or bonus depreciation on your tax return.

4. Review Your Payroll and Contractor Payments

If you have staff, payroll errors are a common source of penalties. If you use independent contractors, you must issue 1099-NEC forms.

• Payroll: Verify that you are withholding the correct federal, state, and FICA taxes. Use a payroll service like Gusto or ADP, which costs $40 to $100 per month plus $6 to $12 per employee.
• Form 1099-NEC: Send to any contractor (e.g., billing specialist, marketing consultant) you paid $600 or more during the year. Deadline is January 31, 2026.
• Form W-2: Provide to employees by January 31. File with the Social Security Administration.

Action this week: If you paid any contractor over $600, prepare and mail the 1099-NEC forms now.

5. Check Your Retirement Plan Contributions

Retirement plans offer significant tax savings, but contributions must be made by certain deadlines.

• SEP IRA: You can contribute up to 25% of net earnings, capped at $70,000 for 2026. Deadline is your tax filing deadline (including extensions), so you can fund after year-end.
• Solo 401(k): Employee deferral up to $23,500 (plus $7,500 catch-up if over 50). Profit sharing up to 25% of compensation. Deadline for contributions is your tax filing deadline, but the plan must be established by December 31, 2025.
• SIMPLE IRA: Employee deferral up to $16,000, plus employer match up to 3%. Deadline to establish is October 1, 2025.

Action this week: If you haven’t set up a retirement plan, talk to your CPA about a SEP IRA. You can still fund it for 2025 if you file an extension.

6. Assess Your Quarterly Estimated Taxes

If you are a sole proprietor, partner, or S-corp shareholder, you need to pay estimated taxes. Underpayment can trigger penalties.

• Safe harbor rule: Pay at least 100% of last year’s tax liability (110% if your adjusted gross income was over $150,000). Or pay 90% of this year’s liability.
• Calculate your effective tax rate: For a practice netting $150,000, federal income tax plus self-employment tax can be around 30% to 35%. Set aside that percentage from each paycheck.

Action this week: Use IRS Form 1040-ES to estimate your next quarterly payment. If you’re unsure, pay a conservative amount to avoid penalties.

7. Review Your Business Structure and Insurance

Your first year may reveal that your initial structure is not optimal. Reassess.

• S-corp vs. sole proprietorship: If your net income is above $80,000, an S-corp can save on self-employment taxes, but it adds payroll costs. Compare the savings to the extra bookkeeping fees ($1,500 to $3,000 per year).
• Insurance coverage: Verify that your malpractice policy covers all procedures you perform. Also consider business owner’s policy (BOP) for property and liability, typically $500 to $1,500 per year.

Action this week: Schedule a meeting with your insurance broker to review your coverage limits.

8. Plan for Next Year’s Tax Strategy

Annual review is not just about the past; it’s about the future. Set up systems now.

• Open a separate bank account for taxes. Transfer 25% to 30% of every deposit into it.
• Implement a receipt tracking app like Expensify or Receipt Bank to capture expenses in real time.
• Schedule quarterly tax check-ins with your CPA to avoid surprises.

Action this week: Open a high-yield savings account for tax reserves. Aim to have at least one quarter’s tax liability saved by the end of the month.

FAQ

Q: What is the biggest tax mistake new podiatry practices make?

A: Underpaying estimated taxes. Many new owners assume they can pay everything at year-end, but the IRS penalizes underpayment. Use the safe harbor rule to avoid penalties.

Q: Can I deduct the cost of my podiatry license and board certification?

A: Yes, state licensing fees and board certification costs are deductible as business expenses. Keep the receipts.

Q: How long should I keep tax records?

A: Keep all tax returns and supporting documents for at least 7 years. This includes bank statements, receipts, and mileage logs.

Q: Should I hire a CPA or use tax software?

A: For a new practice, a CPA is worth the $500 to $2,000 fee. They can catch deductions you might miss and help with structure decisions. Software like TurboTax Business costs $200 to $400 but lacks personalized advice.

Related guides

• The Complete New Podiatry Practice Startup Checklist
• 7 Mistakes New Podiatry Practices Make in Their First Year
• 7 Questions to Ask Before Buying a New Podiatry Practice

The bottom line

Your first year as a podiatry practice owner is a learning curve, but an annual review prevents costly mistakes. Reconcile your books, verify deadlines, maximize deductions, and plan for next year. Take one action this week: schedule a meeting with your CPA to go through this checklist. A few hours now can save you thousands in taxes and penalties later.