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Hiring the right bookkeeper for your small business plays a key role in keeping your finances strong. Whether you’re starting a new business or working to improve your current financial processes, an experienced bookkeeper can help you maintain accurate accounts, manage cash flow smoothly, and comply with Australian tax regulations. At Truetally Bookkeeping, we understand the everyday struggles faced by small business owners, and we work to support you in choosing the ideal bookkeeper for your business. In this article, we’ll explain what you should look for when hiring a bookkeeping expert and how Truetally Bookkeeping remains a trusted partner for businesses across Australia. Why Your Healthcare Business Needs a Bookkeeper Hiring a bookkeeper isn’t just about complying with Australian financial regulations; it’s also about taking back your time and reducing stress. Bookkeeping requires skill, focus and long hours, so outsourcing allows you to focus on what matters most – supporting your clients, leading your staff and expanding your services. A professional bookkeeper keeps your accounts accurate, helps you stay on track with tax deadlines and provides you with clear financial reports such as profit and loss statements, balance sheets and budgets. More than compliance, a committed bookkeeper acts as a financial teammate. They will sit down with you each month to review your results, streamline your financial reports and guide you to make smart choices. This type of support helps you plan for growth rather than waiting for problems to appear. As your financial strength improves month by month, you gain confidence and peace of mind. Are You Outsourcing Your Bookkeeping? As your business grows, so does the need for proper bookkeeping and accounting. You have the option of outsourcing your bookkeeping to a professional or handling the basics yourself. The options for handling your bookkeeping are straightforward: You can hire a skilled bookkeeper or accountant to handle all of your bookkeeping tasks for you. You can take complete control and handle the bookkeeping entirely yourself. You can combine the two – use the guidance of a dedicated bookkeeper while the accounting software handles most of the tasks. Option three often works best. Since basic bookkeeping is fairly simple, with the right practice management tools and accounting software, you can handle most of the tasks yourself. To fill in the gaps and ensure proper workflow, you can supplement your efforts with occasional sessions with a bookkeeper or accountant, especially during tax season. Here, we outline how to manage basic small business bookkeeping, including methods, responsibilities, and how to handle them efficiently. Purpose of Companion Health Bookkeeping Before diving into the methods and tasks, it’s worth asking why bookkeeping is important? By handling basic bookkeeping yourself, you get: Accurate financial records to understand profitability and cash flow. ATO compliance, including filing tax returns and claiming business expense deductions. Reliable financial information to guide business decisions and future planning. You’ll also stay on top of your income and expenses, such as overdue invoices, which allows for more accurate budgeting. Use Accounting Software Instead of Spreadsheets Technically, it is still possible to use Excel or similar spreadsheets for ‘spreadsheet accounting’ in your allied health business. However, modern, automated accounting software such as Reckon has largely replaced these outdated methods. For example, if you have a POS system for patient payments, you can connect it directly to your accounting software. This allows you to instantly import sales data and monitor your clinic’s cash flow in real time. When you integrate your cloud accounting software with a practice management system such as Better Clinics, you simplify bank reconciliations, easily track GST, and automatically categorize and record your sales in your chart of accounts. The Dangers of Poor Bookkeeping It is clear that neglecting proper bookkeeping can cause serious problems for your business. Errors in financial records can lead to tax compliance issues, payroll errors, and poor cash flow management. Additionally, the stress of correcting financial errors or handling bookkeeping on your own takes time away from running your core business, which can lead to burnout and jeopardize the sustainability of your business. We often see this happen with fellow health business owners who start small businesses and manage their own bookkeeping, but over time it becomes more complex and time-consuming. This usually results in a ‘what you don’t know’ situation – owners make coding errors, rely on meaningless default reports, combine multiple workaround spreadsheets, miss balance sheet items, and more. At this point, a professional bookkeeper reset becomes necessary, often with a sigh of relief. Finding The Right Bookkeeper If you choose to outsource your bookkeeping, choosing the right person is important. Look for someone with experience in Allied Health like Truetally Bookkeeping or related industries who is proficient in current accounting software and is committed to ongoing professional development. The right bookkeeper also understands practice management software systems. A proactive bookkeeper does more than just keep records – they meet with you monthly, explain reports, highlight trends, and provide insights and strategies to help your business grow. A top bookkeeper will happily collaborate with you, your accountant, and your business coach to review reports and plan next steps. Read More: Bucket Company: What Is It? How Can You Save Max. Profit With Min. Taxes

Various types of trusts are commonly used in Australia as the preferred structure for managing investments, overseeing family finances and running businesses. A key consideration when creating a trust is the appointment of a corporate trustee. The use of a corporate trustee can strengthen asset protection, limit personal liability and provide greater control over how distributions are made, making it an important part of the administration and overall structure of a trust. Did you know that Australia offers many different types of trusts? If you are planning to establish a trust, it is important to understand the different options available so that you can choose the type that best suits your personal or business circumstances. In this guide, we have outlined seven of the most commonly used trusts in Australia to help you make informed decisions when establishing a trust for your investments, business or family financial planning. What Is a Trust? A trust is a legally recognized arrangement where the settlor transfers assets to a trustee, who manages these assets on behalf of the beneficiaries. The main purpose of a trust is to efficiently distribute and manage assets for tax purposes, protect them from creditors or legal claims, and provide for beneficiaries, including those with special needs. Trusts also play an important role in managing tax liabilities, maintaining control over assets during a person’s lifetime, and ensuring the long-term continuity of a family business or legacy. By establishing a trust, individuals can protect their assets and ensure that they are used in accordance with their intentions. Types Of Trusts in Australia Understanding the different types of trusts in Australia can help you choose the structure that best suits your financial, family or business needs. 1. Discretionary Trust (Family Trust) Discretionary trusts, commonly called family trusts, are popular because of their flexibility. The trustee decides how income and capital are distributed to beneficiaries. Families often use these trusts for tax planning and wealth management because they allow income to be allocated to members in lower tax brackets, providing significant tax benefits – if the trust is managed properly. Improper administration can lead to unexpected tax consequences. Once established, only family members can benefit; distributions to non-family members can result in significant tax penalties. 2. Deferred Trust A Deferred Trust specifies in advance the beneficiaries’ rights to income and capital as set out in the trust deed. This structure is suitable for situations that require a clear and predetermined distribution of assets, such as joint business ventures or investments. A typical example is a will or estate where the trust ensures that assets are distributed according to predetermined instructions. A revocable trust provides certainty and clear ownership but offers less flexibility than a discretionary trust. 3. Testamentary Trust A testamentary trust is established under a will and only becomes active after the person’s death. It provides control over how assets are managed and distributed, rather than passing assets directly to beneficiaries. Testamentary trusts are ideal for parents with young children, dependents with special needs, families looking to protect their inheritance from divorce or disputes, and high-value assets that require tax-efficient planning. They can be structured as discretionary, revocable, or hybrid trusts and may include age limits or conditions on access. Proper planning and drafting are important, as poorly set-up trusts can be challenged under the Family Provisions Act 1972 (WA). Trustees have important duties to act in accordance with wills and legal requirements. 4. Hybrid Trust A hybrid trust combines features of both discretionary and fixed trusts. Some beneficiaries have fixed rights, while others receive distributions at the discretion of the trustee. This structure is suitable for investors who want fixed ownership with flexibility, families or business partners with mixed financial arrangements, and complex estates or businesses that require a balance of control and adaptability. Hybrid trusts require a clear trust deed to avoid disputes, and trustees must understand both fixed and discretionary responsibilities. They are often used in family businesses involving external investors and require careful tax and legal management. Also Read: Top 7 Outsourced Bookkeeping Services Firms in Sydney (2026) 5. Charitable Trusts Charitable trusts are created to support approved charitable causes. They ensure that assets and income are used only for charitable purposes and, if properly registered, can qualify for tax exemption. Individuals, families or organisations can use them to manage long-term donations or endowments, leave legacies or structure philanthropic activities. Trustees must manage assets responsibly, ensure that the trust only benefits charities, and comply with legal requirements under WA and federal law. Registration with the Australian Charities and Not-for-Profit Commission (ACNC) is often required, along with transparent reporting. 6. Special Disability Trusts Special Disability Trusts assist immediate relatives or guardians to care for family members with a serious disability. This trust can be created by will or during the life of a relative, with contributions of up to $500,000 not affecting the beneficiary’s Social Security entitlement. The beneficiary must have a serious disability or medical condition, and the trust is designed to provide long-term support and financial security. 7. Unit Trust A unit trust divides ownership into units, similar to shares in a company. The number of units held determines each beneficiary’s share of the income and assets. This structure provides a clear ownership model, allows new investors to join by purchasing units, and is commonly used for real estate investments and joint ventures. Beneficiaries are taxed on their share of income regardless of distributions, and this structure is less flexible than a discretionary trust to adjust income flows. 8. Managed Investment Trusts (MITs) Managed Investment Trusts (MITs) are a type of unit trust where the public collectively invests in passive income-producing assets such as property, shares or fixed interest. MITs must meet certain ATO requirements. They offer tax relief, professional management, diversification and scalability for large projects such as commercial property portfolios. Individual investors do not control decision-making, management fees apply, and compliance requirements are strict, but MITs provide access to an institution Advantages Of

There are many effective tax reduction strategies available for businesses, but, we stress that the structure of your business is the foundation. Without the right structure, you could be missing out on key tax planning opportunities. The ideal structure should be tailored to your specific circumstances and remain adaptable as your business grows and develops. Always speak to your accountant for specific tailored advice. What Is a Bucket Company? A Bucket Company is a special type of company in Australia that is often used for strategic tax purposes. It enables the distribution of profits at the company’s low corporate tax rate rather than the higher personal tax rates. This can be particularly useful when there are few beneficiaries, such as a spouse or parents. Using a Bucket Company allows business owners to legally reduce their tax liability and efficiently distribute profits to their chosen beneficiaries while also providing asset protection. Benefits Of a Bucket Company Tax Savings: A Bucket Company enables a trust to allocate income to the company at a lower tax rate than to individual beneficiaries, which can generate significant savings for beneficiaries. Asset Protection: A bucket company provides strong asset protection against creditors, compared to placing them in a personal trust. Flexibility: A company trust provides flexibility in the distribution of income, allowing you to align financial decisions with your long-term goals. How Does a Bucket Company Save You Money? To understand how a bucket company works, let’s consider a business that makes $500,000 in annual profits. Imagine that all of the shares of the business are owned by a trust with three beneficiaries: a husband, a wife, and a bucket company. If the trust distributes $250,000 each to the husband and wife, they will each pay $83,167 in taxes, giving them a combined take-home of $333,000 after taxes. Alternatively, if the couple wants to reinvest some of the profits, they can each keep $180,000 for themselves and distribute the remaining $140,000 to the bucket company. In this case, they will each pay $51,667 in taxes, while the company will pay $42,000 in taxes (assuming a 30% corporate tax rate). The total after-tax income for the husband, wife, and company would now be $354,000. The bucket company could use $98,000 for investments such as stocks, loans, or property. By distributing some of the surplus to the bucket company, the couple would save about $21,000 in taxes that year. If the couple is nearing retirement, has a lower cost of living, or wants to invest more aggressively, they could distribute $120,000 to themselves and $260,000 to the bucket company. Each spouse would pay $29,467 in taxes, while the company would pay $78,000. The combined after-tax income would then be $363,000. Now, the company has $182,000 available for investment, and the couple would save more than $30,000 in taxes compared to distributing all the income to themselves individually. Building Wealth Beyond Tax Savings A bucket company is a powerful tool for strategically managing assets. Here’s how: Asset protection: Holding assets in a company adds a layer of protection against creditors or lawsuits. Investment diversification: It can invest in a variety of sectors, such as stocks, bonds, or property, reducing risk and potentially increasing returns. Enhanced control: You can strategically manage profit distribution and investments, aligning decisions with long-term goals. Remember: Careful planning: Proper setup and ongoing management require expert advice. Ethical conduct: Operate transparently to avoid legal issues. Compliance: Strictly follow all tax laws and regulations. Also Read: What Features Should I Look For in a Bookkeeper for Allied Health Businesses? How Can a Bucket Company Minimize Taxes And Maximize Profits? Claim Tax Deductions And Credits Identify all legitimate deductions and credits that a company can claim, including business expenses, asset depreciation, research and development credits and investment-related credits. Strategic Tax Planning Create a schedule of income and expenses to reduce tax liability. This may include deferring income or accelerating expenses in the current year. Accountants in Perth offer a wide range of services, including tax planning, compliance, financial analysis and strategic business advice. Tax-Efficient Investment Strategies Choose investments with favorable tax treatment, such as qualified dividends or tax-exempt local bonds, to reduce taxable income and increase profits. Use Tax Incentives And Exemptions Explore local incentives and exemptions, such as industry-specific tax breaks, regional benefits or incentives to hire local employees. Efficient Business Structure Choose a tax-efficient business structure, such as a limited liability company (LLC), S corporation or partnership. Each has different tax implications that can help reduce taxes and increase profits. Consult An Expert Consult a tax professional who specializes in business taxes to find additional strategies tailored to your company structure. Positive And Negative Aspects Of Bucket Companies Bucket companies can significantly reduce tax by optimizing the distribution of profits or assisting in long-term wealth creation, particularly for family-owned businesses. However, they require careful setup and management to comply with the Australian Tax Office. Positive Aspects Of The Bucket Company Strategy Effectively protects assets Allows business family members and entities to distribute profits Limits earnings to 30% Supports tax planning for personal wages of family members Provides flexibility to invest in shares, property and other assets while maintaining security Negatives Of a Bucket Company Strategy Assets may still be at risk in a bucket company Dividends paid to shareholders may not always be tax-efficient The 50% capital gains discount for individuals does not apply to assets held by the company for more than 12 months Installation and maintenance can be expensive Loans and borrowing can be more expensive Conclusion In conclusion, a bucket company offers several benefits that can strengthen your business’s financial management. Reducing tax liabilities, retaining earnings, ensuring asset protection, and maintaining an effective business structure can improve your overall financial health. This model delivers tax benefits such as retained earnings and available credits, making it a valuable option for businesses aiming to operate in a tax-efficient manner. Outsourced Allied Health Bookkeeping Services by Truetally Managing finances can be challenging, especially for allied

The Hidden Financial Risk in Your NDIS Business For NDIS providers, the focus is, rightly, on delivering exceptional support and services to participants. However, the financial and compliance requirements of operating within the scheme are complex and unforgiving. Unlike standard small businesses, your bookkeeping is not just about tax—it’s about compliance, audit-readiness, and the very viability of your business. Settling for “good enough” record-keeping; a messy spreadsheet or generic accounting software is a fast track to headaches, delayed payments, and, critically, non-compliance penalties from the NDIS Commission. Here are three core areas NDIS businesses must master to ensure their bookkeeping is robust and audit-proof: 1. Master the NDIS-Specific Invoicing and Claiming Process The NDIS funding model is unique, and your bookkeeping must reflect this complexity. NDIS Price Guide Alignment: The NDIS Pricing Arrangements and Price Limits document changes regularly. Your system must be agile enough to apply the correct item codes, pricing caps, and rules (e.g., non-face-to-face support, travel) at the time the service is delivered. Charging over the cap or using the wrong code can lead to a rejected claim. Detailed Service Documentation: Every claim must be substantiated. This goes beyond a simple invoice. Your records must link the financial transaction to the actual service delivery. Essential records include: Participant name and NDIS number. Date(s) of support delivery. Support Item Number and clear description. Quantity (e.g., hours or units) and unit price. Evidence of service delivery (e.g., signed timesheets, shift logs, or case notes). GST Treatment is Not Simple: While most NDIS supports are GST-free, some specific items or general business expenses are not. Misclassifying GST can result in incorrect charging, which creates compliance issues and affects your Business Activity Statement (BAS) reporting. 2. Differentiate Income by Funding Source NDIS participant funds can be managed in three ways: NDIA-Managed, Plan-Managed, or Self-Managed. Each method has a different claiming and payment pathway, and your bookkeeping system must track and reconcile all three. NDIA-Managed (Provider Claims): You claim directly via the myplace provider portal. Your records must match the NDIA’s system exactly to ensure prompt payment. Plan-Managed (Invoicing Plan Manager): You invoice the participant’s Plan Manager. You must include all required invoice details to avoid delays caused by the Plan Manager needing to query or correct errors. Self-Managed (Invoicing Participant): You invoice the participant directly, who pays you from their NDIS funds. This requires careful tracking of payment due dates and follow-up. A robust system segregates these income streams, allowing you to quickly reconcile payments, identify outstanding debt (especially from Plan Managers or self-managed participants), and forecast cash flow accurately. 3. Embrace Technology for Compliance and Efficiency Manual systems (like Excel spreadsheets) are too error-prone and time-intensive for the demands of NDIS bookkeeping. Integrate Your Systems: Look for cloud-based accounting software (like Xero or Myob) that can integrate with NDIS-specific management tools (like ShiftCare or SupportAbility). This allows support workers to log shifts, which then automatically flow through to invoicing, eliminating manual data entry errors. Secure Record Retention: NDIS rules require you to securely store all financial and service delivery records for a minimum of five years. Cloud-based storage is essential for accessibility, security, and audit-readiness. Automate Payroll Compliance: Staff wages in the NDIS sector often fall under complex awards (like the Social, Community, Home Care and Disability Services Industry Award – SCHADS Award). Your payroll system must be accurate and compliant with Single Touch Payroll (STP) to avoid penalties and ensure staff are paid correctly. The Takeaway Your bookkeeping system is the backbone of your NDIS or allied health business. Investing in the right processes and specialist knowledge isn’t a cost; it’s a foundational necessity for both financial sustainability and continued compliance. If you’re unsure, consulting with an NDIS-specialist bookkeeper or accountant is a worthwhile strategic move. You may also like: Beyond the Books: The 3 Key Numbers Every Australian Allied Health Practice Must Master in 2026

Are You a Clinician or a CEO? (You Need to be Both) As an allied health professional in Australia (think physio, psychology, osteo, or speech pathology), your passion is patient care. But to ensure the long-term viability of your practice in a complex funding environment, you must also be a financial strategist. In 2026, a simple Profit & Loss report is not enough. Your bookkeeping needs to be accurate, but your focus must be on understanding your Key Performance Indicators (KPIs). These are the three essential numbers you must track, understand, and use to drive your practice’s success. 1. The Lifeblood: Provider Utilisation Rate Your most valuable resource is the time of your clinicians. The Utilisation Rate tells you how efficiently you are monetising that time.  Provider Utilisation Rate = Actual Billable Hours / Available Working Hours What it means: A high utilisation rate (e.g., above 75-80%) means your clinicians are spending most of their paid time in billable sessions, which drives revenue. A low rate signals wasted capacity. Bookkeeping Connection: Your payroll and rostering system must integrate seamlessly with your practice management software. Accurate tracking of non-billable time (e.g., admin, team meetings, professional development) is crucial to calculate Available Working Hours correctly. Actionable Insight: If your rate is low, investigate: Poor Scheduling: Are there too many gaps between appointments? Excessive Admin: Is a clinician spending too much time on admin tasks that an assistant could handle? Cancellations: Is your cancellation policy being consistently enforced and recorded? (See next point). 2. The Risk Indicator: Aged Receivables Unlike a retail business, allied health often has multiple, complex payers (Medicare, private health funds, NDIS, WorkCover, TAC, DVA, SWEP, private patients etc.). Aged Receivables is the money owed to your practice that hasn’t been paid. What it means: This KPI tracks how long your invoices remain unpaid and is the clearest indicator of your practice’s cash flow risk.2 It’s typically broken down into categories: Current (0-30 days), 30-60 days, 60-90 days, and 90+ days. Bookkeeping Connection: Your bookkeeping system (e.g., Xero or MYOB) must reconcile incoming payments from all sources back to the individual invoices/claims. Errors here are common when processing bulk payments from funding bodies. Actionable Insight: High 90+ Days Balance: This is a red flag. Implement a stricter collection process. This might require dedicated staff time to follow up with Plan Managers, WorkCover case managers, or insurance companies. Alternatively, should you be quoting before you are creating invoices and adding a patient to a debtors list? Invoicing Errors: Often, delays are caused by simple errors (wrong provider number, incorrect date, or missing client details) or missed claim opportunities due to a lack of reliable process. A quick review of your high-risk accounts will help you tighten your invoicing protocols. 3. The Sustainability Check: Wages-to-Revenue Ratio Staff costs are typically the largest expense for any allied health practice. This KPI helps you determine if your wages are sustainable relative to your revenue. Wages-to-Revenue Ratio = Total Wages & On-Costs (Inc. Super) / Total Revenue (Excl. GST) What it means: For a healthy, sustainable practice, this ratio typically sits between 45% and 55% of total revenue. If you are above 60%, your profitability is at severe risk. Bookkeeping Connection: This is where accurate payroll accounting is critical. Your Total Wages & On-Costs must include superannuation, annual leave entitlements, payroll tax (if applicable), and workers’ compensation insurance. The Payroll Tax Warning: In 2026, state-based payroll tax rules for medical and allied health practices are a major area of scrutiny. Revenue offices are increasingly reviewing contractor arrangements to see if they should be deemed employees for payroll tax purposes. Consult with a specialist accountant to ensure your financial structure and contracts minimise this significant compliance risk. The Takeaway: By moving beyond simply recording income and expenses, and instead focusing on these three core practice metrics, you transition from a reactive clinician to a proactive CEO, building a financially sound practice that can thrive in the Australian healthcare system. Read More: NDIS Bookkeeping: Why ‘Good Enough’ Isn’t Good Enough for Compliance