If you cannot measure it you cannot manage it!

Australian first for healthcare practices a new way to lower your overheads and improve profitability.

What are the three important things people want in life?

Go big, boutique or broke by tackling two of your greatest stresses

There are three important things people want in life:

  1. That their loved ones are cared for;
  2. Financial security; and
  3. More time.

We can help significantly with the last two items. If you are a healthcare practitioner, we can help you, your loved ones and your patients.

Not knowing your financial status can be stressful and can put your patients at risk

For practice owners, it can be frustrating and expensive to determine your true financial status so you can make that next big decision to go on a holiday, hire more staff, or spend money on more advertising, or perhaps a new practice reception area, or acquire new future-proof technology.

In a highly competitive healthcare environment, where the Government is increasingly reducing funding and patients are demanding more for less, many practices are worried; are they sustainable and for how long?

The ultimate solution

We are proud to offer to medical and healthcare practice owners the first uniquely comprehensive and unprecedented best-practice performance accounting and practice advisory service delivered on your mobile phone.

With peace of mind, you can cost-effectively eliminate your most difficult monthly practice reporting, accounting, bookkeeping and practice management problems.

Enjoy up to a 40% reduction in practice accounting, tax, bookkeeping and administration compliance costs. Up to 100% increase in quality, reliability, and timeliness guaranteed.*  

This solution is ideal for start-up or growing practices with practice managers who are focused on front-of-house functions. Practice managers face increasing difficulty handling the full-time strategic and operational complexity of a practice, as well as those critical and increasingly complex back-of-house financial and reporting tasks.

The time to future-proof your practice is now, so you can recruit and retain the best staff, and allow them to focus on what they do best.

In recent years cloud technology has revolutionised the accounting and practice management advisory profession. It has made it easier and more cost-effective to provide high quality and timely advice to healthcare practice owners.

Most practices, if they are not agile enough and they are too big to change, will face additional costs in terms of unnecessary time, lost opportunities and unnecessary expenditure in preparing financial statements.

Reduce your stress by finding an experienced and proactive accountant and adviser

A great accountant can improve your quality of life. A recent Accountants Daily article revealed that 85 percent of SMEs say that using an accountant significantly reduced the stress associated with their small business. This equally applies to owners of health practices.

And another survey, this one from the Institute of Public Accountants, has found that more than a quarter of SMEs wouldn’t have gone into business if they realised the associated stress, and that a third of those surveyed wish they had engaged an accountant earlier.

However, some practice owners may see their accountant’s fee as a ‘grudge purchase’ and not an investment. In some ways this is understandable, because giving advice is not necessarily a tangible purchase. The client may think “after all, my accountant only spoke to me for five minutes”. The accountant’s advice may ultimately have saved the client $100,000 but the client may only realise this afterwards.

The accountant’s bill can detract from the overall big picture of knowing how much better off the well-advised practice owner actually is.

For example, if your accountant or adviser can help you save $300,000 to $500,000 p.a before tax and after their costs, then the true opportunity cost of not engaging the right advice can be substantial.

The key is to find an accountant who understands and has a track record in your specialty. This saves you valuable time and money on expensive false starts, re-inventing the wheel and unnecessary errors.

Setting up and running a healthcare practice takes more skill and expertise than an accountant has who just prepares doctors’ tax returns or does financial planning. This is akin to getting your maintenance person to redesign your family home. It makes no sense.

You are either growing bigger, going boutique or going broke.

To increase your profitability, you need to see more patients or reduce costs or both. Before you can do this, you need to know how you are going each month. Knowing your next step is critical.

There is nothing worse than a financially-stressed doctor who in turn, unnecessarily stresses out the staff and patients. It is a breeding ground for mistakes and can result in poor quality care. Simply increasing your turnover of patients is not the only solution, nor is it a sustainable one.

The bottom line is there is no point if your patient thrives but your practice dies.

We can help you now!

Full or partial financial outsourcing the hard stuff

We predict it will be harder to get bank loans in future. The Royal Commission into the banking sector is now asking for banks to request more timely and specifically detailed financial information about you and your business before they will approve finance.

See How Westpac plans to crackdown on home buyers.

Cloud accounting appears to be the sole, and most cost-effective and efficient, way around this problem.

We can help by ensuring your financial well-being is available to you 24/7 from your mobile phone.

Accessing timely monthly financial information, backed up with our experience of 27 years of national healthcare specialist advice, can give you peace of mind.

You can outsource this fixed-price service to us, or we can work with your bookkeeper and offer you a backup service if and when they are not available.

Most importantly, using our Doctors Pay Calculator (uniquely developed by a Chartered Accountant and Registered Tax Agent), we can process those providers that are paid on a percentage of their receipts. And we will include our template percentage service agreements and employment contracts as well.

Five important reasons for using this new service either in full or in part:

  • Up to a 40% reduction in practice accounting, bookkeeping and administration costs. Up to 100% increase in quality and timeliness of service (guaranteed). Greater cost-effectiveness and reliability – you are not paying for bookkeeping errors or staff turnover.
  • Fixed monthly fee, so you can better budget your accounting and bookkeeping fees. No more big and lumpy bills.
  • Doctors Service Fee Pay Calculator and Provider Template Agreements. Unique in Australia, and developed by a Chartered Accountant and Registered Tax Agent, these tools simplify critical tax documentation for providers with the correct audit trail and procedures in place.
  • Access our national monthly practice benchmark so you know what you may be missing out on (e.g. the payment of practice grants). Integration of your website with Google Analytics so you can see your patient pipeline and how this may affect your bottom line, in real time.
  • 24/7 mobile access is available so you no longer have to chase advisers to find out how you are going, with profit warning alerts and reports if things need your attention.
  • High-quality phone support

Chartered Accounting Standards back-up with the assurance of 27 years of national experience in healthcare working with GPs, Specialists and Allied Health practitioners. No more conflicting advice; we dispense high quality advice on pathology and pharmacy rates and practice valuations. Monthly free chat time included.

What do we offer?

Our team is experienced and we apply only best practice principles in providing comprehensive bookkeeping and compliance services – watch this video sample of what we can do for you.

Function Specific
Bookkeeping ▪ Maintain and manage general and sub-ledger accounts in accordance with relevant Accounting Standards (AASB) such that:
  •  Balances are reconciled;
  •  Accounts are analysed monthly;
  •  Details and schedules can be made readily available.
  •  Perform monthly closing procedures of all accounts for timely submission of reports.
  •  Prepare and/or produce accurate Balance Sheets and Income Statements monthly including supplemental financial schedules.
Bank  Reconciliation ▪ Records all bank movements within accounting system using the correct accounting treatment
  •  Creation and maintenance of bank rules for increased efficiency
  •  Prepares bank reconciliation, maintaining the system bank feed balances in accordance with true banking records
  •  Obtain documentation for business expenses made directly by directors and employees to confirm accounting treatment is appropriate.
Accounts  Payable Record all accounts payable invoices within accounting system with correct allocation and GST.
  •  Create and maintain Supplier Rules and manage the Auto-Publish function within Receipt Bank to gain increased efficiencies
  •  Review and make payments for the reimbursement of employees for business-related purchases
  •  Process batch payments for business-related payables, expenses or purchases with proper approvals and supporting documents (i.e. invoices, receipts, and proof-of-purchase)
  •  Prepare schedules and accounts-payable related reports, including email notification to management of Important/ urgent payables.
Accounts  Receivable Monitor invoicing systems ensuring system integrations remain intact and appropriately record accounts receivable accounting entries in the accounting system
  •  Prepare Accounts receivable aging schedules with status updates.
  •  Generate AR aging reports and identify critical issues.
Provider Pays – Service Fee Calculations for providers using Doctors Pay Calculator Software – for full audit trail and see brochure for full details. ▪  Supply provider template, software and accurate compliance with pay preparation
  •  Prepare and/or produce accurate provider Tax Invoices, BAS and Income Tax Extract  summaries
  • Prepare bank reconciliation, maintaining the system bank feed balances in  accordance with true banking records
  • Obtain documentation for business expenses made directly by directors and employees to confirm accounting treatment is appropriate
  • Records all bank movements within accounting system using the correct accounting treatment
  • Creation and maintenance of bank rules for increased efficiency
  • Prepares bank reconciliation, maintaining the system bank feed balances in accordance with true banking records
  • Prepare and/or produce accurate Balance Sheets and Income Statements monthly including supplemental financial schedules.
Payroll ▪ Preparation of the Payroll including electronic uploading of payment into online bank facilities.
  •  Preparation and payment of Superannuation
  •  Preparation of final pay computation for resigned employees
  •  Setup of new employees in the Payroll system
  •  Review, reconciliation and preparation of Annual Payment Summaries
Tax  Compliance ▪ Preparation and lodgement of IAS
  •  Preparation and lodgement of BAS
  •  Preparation and lodgement of Payroll Tax
  •  Preparation of year end requirements
Financial  Statements ▪ Review and analysis of client accounts
  •  Preparation of Financial Statements for Companies, Trusts, Partnerships and Sole Traders
  •  Preparation of Accounting Workpapers, supporting Balance Sheet accounts, key Expense Accounts and Income Tax Calculations
  •  Calculation of Fringe Benefits Tax and preparation of relevant accounting entries
Tax Return  Preparation ▪ Preparation of Income Tax Reconciliations
  •  Preparation of Tax Returns for Individuals, Companies, Trusts and Partnerships
  •  Calculation of Company Franking Account balances
Activity  Statements ▪ Preparation of IAS/BAS
  • Reconciliation of ATO liabilities including GST Payable, PAYGW Payable and Income Tax Provisions

Please note a separate once-off clean up and set up fee may be incurred depending on your requirements.

How Much?

For more information about our cost-effective, fixed-fee Chartered Accounting, tax agent registered standard, best-practice financial reporting, tax and bookkeeping (for the price of a bookkeeper) then contact us for a confidential, no-obligation chat and quote. Or, if you want to outsource any ‘bug bear’ component of your accounting or bookkeeping work such as paying providers, please also contact us. This service can be provided anywhere in Australia.

*Our guarantee applies, provided the terms and conditions are applied to. Do not hesitate to contact us for more information. Contact David Dahm for further information at pa@healthandlife.com.au.

Please note we are not lawyers, we are accountants and practice advisers. Please seek specific legal advice in relation to your own circumstances. We cannot be held responsible for any errors or omissions in this article. This is for discussion purposes only. It is important to start to ask the right questions first and get it in writing.

For more insights visit our blog.

About me: David Dahm BA (Acc.), CA., FCPA, CTA, FFin, CPM, FAAPM, FAIM, FGLF.

Chartered Accountant, Chartered Tax Adviser, Registered Tax Agent, Former AGPAL Surveyor 10 years of service

David Dahm is CEO and founder of the national medical and healthcare chartered accounting firm Health and Life and global Founder and CEO of the not for profit project the International Healthcare Standards and Ethics Board (www.ihseb.org)

After a serious work related car accident in 1989, and nine operations later I continue to be a patient and provider advocate. I enter my third decade as a national Chartered Accountant for Medical and Healthcare practices in Australia. I am a former 10-year Australian General Practice Accreditation surveyor. I come from a medico family. I have served on the AAPM national Board and was the inaugural national Chair of the Certified Practice Manager CPM post nominal. I continue to provide accounting tax and practice management advice to many practices all over Australia.

You know who you are and I thank you for this real honour and privilege to serve you and your community through you. Note, I am not a lawyer please seek appropriate legal and accounting advice. This information is for general information and discussion only.

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