An affordable bookkeeping service for general practitioners Melbourne
Most GP practice owners are running a business with the financial complexity of a mid-sized company while being primarily trained for and focused entirely on clinical medicine
Bookkeeper for GP practices in Melbourne
Do any of these financial scenarios sound familiar as a GP practice owner?
- Medicare bulk billing payments from the Commonwealth do not arrive when consultations occur and you are not certain the income timing in your accounts is correct.
- Your practice runs bulk billing and private billing simultaneously and the GST treatment of each is not clearly separated in the accounting software.
- You have associate doctors on a percentage of billings arrangement and you are not certain whether their super and PAYG obligations have ever been correctly assessed.
- Nursing and reception staff payroll rates have not been reviewed against the Health Professionals Award since the last hire.
- Practice incentive payments, care plan items and other MBS billing categories are all going into the same income account without any breakdown that would help you understand practice performance by service type.
- Your accountant spends time at year end correcting entries that should have been right throughout the year and charges you for the time it takes.
If any of these sound like your practice, you are not alone and there is a straightforward fix.
Bookkeeping services for a GP practice
A general practice clinic generates Medicare income that is GST-free under the health services exemption, but the financial administration of that income involves several layers of complexity that go well beyond simply recording a deposit when the Commonwealth pays.
Bulk billing income must be reconciled against the MBS claim submissions recorded in the practice management software, not simply accepted as an accurate figure when it arrives in the bank.
Practice incentive payments, care plan payments, and other MBS items arrive on separate schedules and must be recorded against the period in which the services were delivered rather than when the payment was received.
Mixed billing practices that see both bulk-billed and privately billed patients are managing two revenue streams with fundamentally different accounting treatment.
Bulk billing income is GST-free and the Medicare rebate goes directly from the Commonwealth to the practice.
Private billing generates a patient invoice, a Medicare rebate claimed by the patient or assigned to the practice, and in some cases a gap payment, all of which must be recorded and reconciled separately to produce a reliable income figure and a correct BAS.
Associate doctor arrangements create the most significant compliance risk in most GP practice bookkeeping files. A GP principal who engages associate doctors on a percentage of billings arrangement, classifies them as contractors and has never had the arrangement formally assessed against the ATO’s employment test is carrying a super and PAYG liability that may extend back years.
The ATO’s compliance focus on contractor misclassification in healthcare has intensified, and the consequence of misclassification is not just prospective, it applies to every payment made under the incorrectly classified arrangement from the beginning.
A certified and qualified bookkeeper
Working with Clients Needs Bookkeeping means the financial administration of your practice is handled end to end by a registered BAS Agent who understands the specific requirements of a dental business. In practical terms, this covers:
How we manage the bookkeeping for GP practices every week
Working with Clients Needs Bookkeeping means the financial administration of your practice is handled end to end by a registered BAS Agent who understands the specific requirements of a medical service business. In practical terms, this covers:
- Practice management software income reconciliation.
Medicare bulk billing receipts, private billing patient payments, Medicare assignment of benefit payments, practice incentive payments and care plan item income are all reconciled against the practice management system so that the revenue recorded in the accounting file reflects actual service delivery rather than payment timing from multiple Commonwealth and patient sources.
- GST treatment across bulk billing and private billing.
Bulk billing income is correctly recorded as GST-free. Private billing gap payments and any taxable services the practice provides are correctly coded as taxable. The BAS reflects the actual mixed-billing position of the practice.
- Associate doctor and contractor arrangement assessment.
Each associate arrangement is assessed against the ATO’s employment test on the substance of how it operates. Super obligations are calculated and paid where required. PAYG withholding is applied where the arrangement meets the employment definition.
The practice is not carrying an undisclosed liability for arrangements that have operated for years without formal assessment.
- Health Professionals and Support Services Award payroll.
Nurses, practice managers and reception staff are paid at the correct classification level under current award rates, reviewed after each annual Fair Work wage review. STP lodged with the ATO every payday. Payslips compliant with Fair Work requirements issued within one business day.
- Accounts payable management.
Medical supply invoices, equipment maintenance, software subscriptions and practice running costs entered promptly, coded to the correct accounts, and scheduled for payment before they fall overdue.
- BAS preparation and lodgment.
Prepared from fully reconciled records with the correct GST treatment applied across all revenue and expense types. Lodged by a registered BAS agent with the four-week extension on both lodgment and payment.
- Profit and loss reporting.
Revenue broken down by service type and billing category so the practice owner can see performance by Medicare item group, private billing and incentive payments separately.
We manage your accounting software so it works for your practice by someone who knows it inside out
Only a registered BAS agent is legally authorised to prepare your BAS, advise on your GST position, and represent you with the ATO in relation to compliance matters. Safe harbour protection applies only to returns lodged by a registered agent. Matthew Powell is registered with the Tax Practitioners Board. Verify at tpb.gov.au.
Software: MYOB Diamond Partner, MYOB Certified Consultant, Xero Silver Champion Partner, Xero Advisor Certified, Xero L2 Certified Professional, Xero Payroll Specialist. Also works with QuickBooks and other platforms.
Frequently asked questions dental practice owners ask before hiring a bookkeeper
Are Medicare bulk billing receipts GST-free?
Yes. Medicare bulk billing receipts are GST-free as income from a health service. Private billing gap payments are also generally GST-free where they relate to a health service. However, some services provided by medical practices including cosmetic procedures, health assessments provided to third parties, and some administrative services may carry different GST treatment. Matthew assesses the correct treatment for each revenue type in the practice.
How should associate doctor income be recorded?
Associate income on a percentage of billings arrangement must be recorded in a way that reflects both the practice’s gross income and the associate’s share as a cost. The gross billing belongs to the practice and the associate’s percentage is an expense. How that expense is treated for PAYG withholding and super depends on whether the arrangement meets the ATO’s definition of employment or a genuine contractor relationship.
We have never had our associate arrangements assessed. What should we do?
This is a common starting point for new clients. Matthew reviews each arrangement against the ATO’s employment test criteria as part of the onboarding process and advises on the correct treatment going forward. Where a historical liability exists, the scope of it is assessed and addressed in consultation with the practice’s tax agent.
What does bookkeeping cost for a medical practice?
Packages start from $150 per month. A solo GP in a mixed billing arrangement has different requirements from a multi-doctor clinic with associates, nurses and an active incentive payment program. The first consultation is free.
Ready to get the financial side of your dental practice managed by a bookkeeper?
- You probably already know the books are not getting the attention they need.
- The BAS gets lodged on figures you are not fully confident in.
- The associate payments are structured the way they have always been structured without anyone checking whether that is still the right classification.
- The award rates for your dental assistants were set when you first hired them and may not have been reviewed since.
None of these are unusual problems for a dental practice.
The first consultation is free and you will leave it knowing exactly where you stand.
Packages from
$150 per month
Structured around what your business actually needs
Registered & certified bookkeeper
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