Here’s What You Need to Know on the Finance and Tax Side on Opening a Clinic

Starting your own physiotherapy clinic is an incredible milestone — but let’s be real: the financial side can feel overwhelming. From licensing to tax rules to simply keeping the lights on, there’s a lot more to running a clinic than delivering exceptional patient care.

That’s why we’ve created our Physiotherapy Clinic Playbook, designed specifically for Canadian physiotherapists looking to launch (or improve) their practice. While the playbook focuses on nationwide essentials, we’ve also included guidance specific to British Columbia where it matters most.

Here’s a taste of the key insights inside:

Know Where Your Money Comes From (and Where It’s Going)

Physio clinics have diverse income streams — from direct patient sessions to group classes, insurance claims, product sales, and even rental income from other professionals. Each comes with unique tax and reporting considerations.

On the flip side, expenses can stack up fast: wages, supplies, marketing, professional fees, equipment, and more. Understanding your Key Performance Indicators (KPIs) like revenue-per-visit, net profit margin, and wages as a percentage of income can help you stay on top of your numbers and make informed decisions.

Tackle Taxes with Confidence

Did you know physiotherapy services themselves are GST/HST exempt in Canada? But that exemption doesn’t always extend to everything you offer:

  • GST/HST applies to services outside core physio treatments, like massage therapy, workshops, corporate wellness programs, or consulting.
  • Product sales (like braces, exercise bands, and wellness products) generally require charging GST/HST and possibly PST.
  • Once your business passes certain revenue thresholds, you’ll be required to register for sales tax and file returns.

Understanding these rules is crucial — so you don’t end up paying unexpected penalties. And if you’re in BC, you’ll find additional details in the playbook about MSP billing and specific provincial requirements.

Set Up Smart Systems From Day One

Good systems are your best friend:

  • Cloud Accounting Software: Tools like Xero and Hubdoc make receipt management, bank reconciliations, and reporting seamless.
  • Clinic Management Apps: Jane App connects scheduling, billing, and payment processing — with Stripe handling secure transactions behind the scenes.
  • Payroll & CRA Compliance: If you have staff, you’ll need to manage payroll deductions and file T4s correctly.

Plan for Growth (and Sleep Better at Night)

The goal of your clinic isn’t just to survive — it’s to thrive. Whether you’re considering a solo practice or planning to expand:

  • Build a realistic budget and monitor cash flow regularly.
  • Stay on top of financial reports like your income statement, balance sheet, and cashflow statements.
  • Know the tax deductions available to your clinic, from equipment purchases to professional dues.

Get Your Free Physiotherapy Clinic Playbook

Our Physiotherapy Clinic Playbook covers essential financial, tax, and regulatory guidance for physiotherapy practices across Canada, with special notes for British Columbia where applicable.

Ready to get the full guide and take the guesswork out of running your clinic?

Sign up to receive the PlayBook Summary HERE

At Virtual Heights Accounting, we specialize in helping professional service firms like physiotherapy clinics succeed. Whether you’re just starting or scaling your practice, we’re here to make sure your financial side runs as smoothly as your patient care.