An affordable bookkeeping service for osteopathic practices in Melbourne
Osteopathic practices with associate practitioners, health fund billing and NDIS clients are carrying financial complexity that a general bookkeeper without allied health experience will consistently manage incorrectly
Bookkeeping for osteopathic therapist practices
Do any of these financial scenarios sound familiar as a osteopathic therapist?
- HICAPS and private health fund settlements are never reconciling cleanly to what the practice software recorded and the difference is treated as an unresolved mystery rather than a problem to solve.
- You have one or two associate osteopaths on a percentage of billings arrangement and you have never had anyone formally assess whether the super and PAYG treatment is correct.
- NDIS clients are billed through a portal that is completely separate from your accounting software and nobody has set up a process to reconcile the two.
- The GST-free health services exemption has been applied across everything billed from the practice without anyone checking whether all services actually qualify.
- Payroll for reception and admin staff has not been reviewed against the Health Professionals Award since the last annual wage review.
- Your books are quarterly at best and your BAS is prepared from whatever the accounting software shows at the end of the quarter without a formal reconciliation process.
If any of these sound like your practice, you are not alone and there is a straightforward fix.
A bookkeeper in Melbourne for an osteopathic therapist
An osteopathic therapist working across multiple funding streams is providing services under fundamentally different commercial arrangements simultaneously.
An osteopathic practice generating income through private health funds, direct patient payments, NDIS, WorkCover and DVA is managing five different income streams that each arrive through different systems, at different times, in different amounts from what was billed.
Each must be reconciled against the billing records to produce an income figure in the accounting software that reflects actual consultations delivered rather than the payment timing of five different payers.
When that reconciliation is not being done systematically, the revenue figure in the accounts is determined by when each payer happened to process and deposit their payment rather than by the clinical work the practice actually delivered.
Associate arrangements are the most consistent compliance risk in osteopathic practice bookkeeping. A principal osteopath who engages associates on a percentage of billings basis and has never had the arrangement assessed against the ATO’s employment test is carrying a potential super and PAYG liability that extends back to the beginning of every incorrectly classified arrangement.
The ATO’s assessment is based on the substance of how the relationship operates in practice, considering factors including who controls the hours, who provides the equipment, whether the associate can substitute someone else, and whether they genuinely operate as an independent business.
A finding of employment applies the obligations retrospectively from the first payment made under the misclassified arrangement.
What a bookkeeper manages for an osteopathic therapy practice
A osteopathic practice has financial processes that are different to other business types, so managing them correctly requires understanding and needs to cover these activities;
- HICAPS and health fund settlement reconciliation.
Every private health fund rebate and patient gap payment is reconciled against the practice management system so that income reflects actual consultations and not payment timing from multiple health funds.
- NDIS income recording.
Income is recorded with the correct treatment for each participant’s plan management type and reconciled against the NDIS portal and payment receipts for each billing period.
- WorkCover and DVA billing reconciliation.
Outstanding claims are tracked through the accounts receivable position with income recognised on claim approval. The aged receivables position gives the practice owner visibility over what is outstanding from each insurer.
- GST treatment assessment.
The health services exemption is applied correctly to therapeutic osteopathic services. Any non-therapeutic services, product sales or non-qualifying revenue is assessed and coded with the correct GST treatment.
- Associate payment management.
Each associate arrangement is assessed against the ATO’s employment test. Super obligations are calculated and applied where required. PAYG withholding is applied where the arrangement meets the employment definition.
- Health Professionals Award payroll.
Reception and administration staff are paid at the correct classification level under the current Health Professionals and Support Services Award rates, reviewed after each annual Fair Work wage review.
- BAS preparation and lodgment.
Prepared from fully reconciled records with the correct GST treatment applied. Lodged by a registered BAS agent with the four-week extension on both lodgment and payment.
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:
A registered BAS agent with software credentials for osteopathic therapists
Matthew Powell is a registered BAS agent. Verify at tpb.gov.au. Safe harbour and the four-week extension apply to every return lodged through a registered agent.
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.
About Matthew Powell, registered BAS agent and bookkeeper
Matthew Powell is the director of Clients Needs Bookkeeping and a registered BAS Agent with more than 15 years of experience working with small and medium businesses across Melbourne and the Mornington Peninsula.
He works across MYOB, Xero, and QuickBooks, and has particular depth of experience in health and medical practice bookkeeping, including dental, medical, and allied health clients.
Matthew is known for being accessible, clients regularly comment that he responds quickly, handles problems promptly, and communicates in plain language rather than accounting jargon.
He works with business owners from any industry sector or niche who provide services or sells products. He does your bookkeeping remotely and takes on new clients with the intent of building a long-term relationship rather than processing a transaction.
Bookkeeping Packages start from $150 per month. The first consultation is free.
Read some of our bookkeeping case studies
Below are real life examples from businesses like yours who needed to use a bookkeeper.
Frequently asked questions osteopathic therapists ask before hiring a bookkeeper
Are osteopathic consultations GST-free?
Osteopathic consultations provided by a registered osteopath for therapeutic purposes are generally GST-free under the health services exemption. Physical products sold through the practice including remedial products, supports and exercise equipment are taxable supplies. Matthew assesses the correct treatment for each revenue type in the practice.
We have associates on a percentage of billings. Do we owe them super?
Possibly. The ATO assesses this based on the substance of the working arrangement. Associates who work exclusively from your practice using your patient base, systems and equipment carry a material risk of being assessed as employees for super purposes. Matthew reviews each arrangement on its specific terms and advises on the correct treatment and any historical liability that may need to be addressed.
Our NDIS billing goes through the portal but nothing connects to Xero. How do you manage that?
Matthew establishes a reconciliation process between the NDIS portal and the accounting software, recording income as claims are approved and paid for agency-managed participants, and as invoices are issued for plan-managed and self-managed participants. The accounting file is reconciled against portal records at the end of each billing period so that income is complete and accurate.
What does bookkeeping cost for an osteopathic practice?
Packages start from $150 per month. The first consultation is free.
Ready to get the financial side of your practice managed by a bookkeeper?
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You already know there are things in the books that are not right.
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The personal expenses that went through the business account during a tight month are still sitting there.
The BAS is lodged but you are not entirely sure the figures are accurate.
None of these are unusual, and none of them are unfixable but every month they sit unresolved is another month of compounding risk.
Packages from
$150 per month
Structured around what your business actually needs
Registered & certified bookkeeper
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