Practice-Owned Leasing Company for Vehicles and Other Equipment in a Large Animal Practice

Abstract

As practices grow, vehicles and equipment investments grow also. Our practice is a group corporation practice consisting of a main hospital and three out-clinics. Our corporate practice has four practicing veterinarians and seven lay employees.

About one year ago we realized that we were maintaining six to eight vehicles: a trailer, two tractors in our practice and related businesses, plus the personal vehicles of the stockholder veterinarians. In the practice alone our investment in vehicles will amount to about $30,000.00. As in most businesses, we were carrying insurance on individual vehicles. We had no uniformity in our policies. Financing methods varied and in some instances were costly. Some vehicles were owned by the practice and some were owned by the stockholders in the corporation and leased back to the corporation. Bookkeeping, accounting, and insurance records became quite involved and inefficient.