Medical transcription jobs include sole proprietorship, working for a medical transcription service company, or managing a transcription company. Transcribers must be trained professionals who transcribe audio files into written documents, proofread for grammar, and use appropriate medical terminology. Sole proprietorship is the most common type of employment, while working for a medical transcription service provides a fixed salary. Running a transcription business requires finding new clients and maintaining quality. Professional services consultants are important for setting up the business structure and providing advice on taxes and deductions.
There are three different types of medical transcription jobs: sole proprietorship, working for a medical transcription services company, or managing a transcription company. A medical transcriber is a trained professional who accepts audio files from doctors, surgeons, and other medical services personnel and transcribes the text into a written document. In addition to providing a full transcript, the medical transcriptionist should proofread the document for standard grammar and use appropriate medical terminology and abbreviations.
The sole proprietorship is the most common type of medical transcriptionist employment. A sole proprietorship is a business model where the qualified person runs his or her business. The medical transcriptionist advertises his services to potential clients, complete with a price list. Clients send their audio tapes to the transcriber for processing in an agreed time frame. The medical transcriptionist completes the job and returns the finished product and bills the customer.
In a sole proprietorship, the total income for services provided is considered business income. The transcriber is able to complete the work on his own schedule and wherever he pleases. In this type of business structure, there are a wide variety of expenses and tax deductions that can be used to reduce the taxable income generated through medical transcription placement services. The transcriber also absorbs the commercial risk: if clients don’t pay, there’s no income for the work.
Working for a medical transcription service allows the transcriber to receive the original files, process them, and return the finished product to the service. He or she is paid a fixed salary or rate, based on the volume of processing completed. This type of medical transcription earned income is generally considered earned income and is subject to all standard deductions. It is the company’s responsibility to find new customers, handle any complaints and collect payments. The commercial risk is absorbed by the service company: if the customers do not pay, the transcriber must still be paid.
Running a transcription business can occur when a sole proprietorship becomes so busy that additional staff need to be hired. In this type of medical transcription work, the manager must actively find new clients, maintain a consistent level of work for the transcribers, and ensure that the same level of quality is maintained.
While transitioning from one type of job to another, it is very important to work with professional services consultants. This team includes a business lawyer and an accountant. The corporate attorney is important in setting the business up in the proper structure to minimize risk, provide a model-based service contract, and advise on corporate liability insurance. The accountant provides advice on tax returns and deductions.
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