We detail how to account for rent or a retrocession on BILLY 🤓
Rent 🧱
This is a payment for the use of a professional space. The rent amount is set in advance.
👉🏻 For example, a doctor rents an office in a medical center. They pay a fixed amount of €50 per half-day of use.
How to categorize rent?
If it's an outgoing payment made by the professional, the category is Rent paid (in the Expenses column).
If it's an incoming payment received by the professional, the category is Rent received (in the Income column).
Retrocessions 👩⚕️
A retrocession is a type of rent paid by a healthcare professional to a colleague or a structure. In exchange for this fee, the professional benefits from certain turnkey services: premises, equipment, secretarial services, reception, clientele…
👉🏻 Example 1: a physiotherapist works in a hospital. The hospital manages the building, secretarial services, clientele, payments, etc. The hospital returns 65% of the income received to the professional. This is called a 35% retrocession.
👉🏻 Example 2: a dentist works in a dental practice. They receive the income from their patients. They return 40% retrocession to the practice for the services provided.
There is thus a contract between the two professionals that specifies the retrocession percentage. This percentage is variable and depends on the service provided. It often ranges between 25% and 50%.
👉🏻 For example, a surgeon or radiologist requires much more expensive equipment than a nurse.
How to categorize a retrocession?
If it's an outgoing payment made by the professional, the category is a Retrocession paid (in the Expenses column).
If it's an incoming payment received by the professional, the category is a Service (in the Income column).
💡 Retrocession paid = an expense that reduces your net income, which is recorded in account 1650 of your tax declaration.
💡 Retrocession received = an income that increases your turnover. This increases code 1650 of your tax declaration.
Summary of differences between rent and retrocessions
| Rent | Retrocession |
Amount | Fixed | Variable (percentage of income) |
Nature of the relationship | Lease contract (rental) | Service agreement |
Included services | Generally none | Often several services included |
Independence | Total | Partial, with shared services |
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