Why specialised bookkeeping for doctors is needed
The medical industry has some unique challenges in bookkeeping, including complex payroll and contractor payments, getting GST-free services right, and the requirement to keep detailed records. Moreover, medical practices often operate with low margins, making it imperative to avoid costly mistakes when it comes to managing your accounts and finances. The right medical bookkeeping processes are the best way to manage your cash flow, increase profitability and efficiency, and stay compliant with tax and statutory requirements. While it is best to establish the right bookkeeping foundation before you start your practice, it is never too late to implement better bookkeeping practices to help your practice flourish.
The benefits of hiring a medical bookkeeping expert
1. Avoid costly mistakes Inexperienced bookkeeping can result in errors and omissions in your activity statements, requiring costly revisions. With a specialist bookkeeper for doctors, you can rest assured that your business accounts are always accurate. We’ll work with your tax agent when needed for advice unique to your practice. Proactive and efficient bookkeeping and accounts management ensures you get the best value.
2. Payroll and contractor management Using the right payroll systems will improve your HR management, resulting in happier staff and higher retention rates. We can help you implement simple and easy-to-use systems to manage timesheets, overtime, allowances and leave transactions. Medical payroll can involve complex arrangements with employees and contractors, which we can manage for you.
3. Save on financial management costs Having a team of professional bookkeepers allows you to enjoy the advantages of best practice bookkeeping. We keep on top of the relevant tax laws, accounting principles and compliance matters so you can focus on your profession. We are cost-effective experts here to help your business success.
4. Better financial budgeting Using Xero accounting software, you will have a clear picture of your practice’s financial position at any point in time, giving you the power to make informed business decisions. We’ll work with you to set budgets, manage cash flow, analyse financial reports and plan for growth.
5. Increased productivity Having a professional and experienced bookkeeper take care of your accounts will free up your time, which you can devote to looking after patients, staying abreast of the latest developments in your field and growing your business.
How we can help
With On The Money Bookkeeping, you have access to a team of experienced and committed bookkeepers and accountants with a thorough knowledge of bookkeeping for doctors. We use Xero, the most advanced and intuitive bookkeeping software available today, and all of our team are Xero certified. We assist private clinics and consultants across Australia to improve their business efficiency and prosperity. Having the right bookkeeping agency for your practice empowers you with all the information you need to track your financial performance. Our specialised medical bookkeeping services take care of your financial health so that you can focus on what you do best – helping the health of your patients. Connect with us for a free review of your existing bookkeeping systems and to discuss what you need help with today.
FAQs
What is medical bookkeeping and why is it important?
Medical bookkeeping is the management of financial records and processes for doctors, specialists, clinics and other healthcare practices. It can include payroll, contractor payments, patient income reconciliation, supplier costs, GST treatment, BAS, cash flow and management reporting.
It matters because medical practices can have complex income streams, staffing arrangements and GST classifications. Accurate records help the practice understand its financial position, meet its obligations and make informed decisions about staffing, equipment, premises and future growth.
How much does medical bookkeeping cost?
The cost depends of medical bookkeeping on the size and complexity of the practice. A solo practitioner with limited transactions will usually require a different level of support from a multi-practitioner clinic with employees, contractors, several bank accounts and detailed reporting needs.
Other factors may include payroll frequency, software integrations, BAS requirements, the condition of the existing file and whether historical clean-up is required. We prefer to review the current systems and understand how the practice operates before providing an estimate.
How does medical bookkeeping differ from general bookkeeping?
Medical practices often deal with a mixture of GST-free and taxable transactions, practitioner payments, service entity arrangements, Medicare or private billing income, merchant settlements, payroll and equipment costs.
Specialised bookkeeping for doctors takes these differences into account. It is not simply about processing receipts and payments. The bookkeeper needs to understand how the practice is structured and how it operates, reconcile income correctly and work with the tax agent where advice is needed on matters specific to the practice.
Is it better to outsource medical bookkeeping or hire in-house?
That depends on the size of the practice, the amount of work involved and the level of expertise already available internally. An in-house employee may suit a large practice requiring full-time daily support.
Outsourcing can provide access to a broader team, specialist knowledge, continuity during leave and professional systems without adding another permanent employee. It can also separate bookkeeping from reception and practice-management duties, helping the practice maintain more consistent financial controls.
What are common bookkeeping mistakes doctors should avoid?
Common problems include failing to reconcile patient income correctly, applying the wrong GST treatment, mixing personal and practice expenses, overlooking merchant fees, misclassifying equipment purchases, incorrectly calculating payments to contractor doctors, overlooking payroll tax on contractor payments and leaving payroll records incomplete.
Another mistake is waiting until BAS or year-end before reviewing the accounts. Regular reconciliation makes errors easier to identify and gives the practice a much clearer understanding of cash flow and liabilities as the year progresses.
How do bookkeepers help doctors with BAS and GST?
A bookkeeper can reconcile the accounts, review transaction coding, identify incomplete records and prepare the financial information needed for the BAS. A registered BAS agent can also provide BAS-related services within their authorised scope.
For medical practices, correct GST classification is especially important because not every source of income or expense is treated the same way. Where specialist tax advice is required, the bookkeeper can work with the practice’s tax agent to ensure the treatment is properly considered.