Stop Chasing Payments, Start Planning for Growth
Many NDIS providers operate their bookkeeping reactively—they record transactions only when they happen and scramble to prepare records before an audit or BAS deadline. The difference between reactive and proactive bookkeeping is the difference between surviving in the NDIS and thriving.
Proactive bookkeeping transforms your financial data into a powerful tool for better decision-making and sustainable growth. Here’s a roadmap for NDIS businesses to elevate their financial management.
1. Build an Audit-Ready Documentation Habit
In the NDIS, the burden of proof rests with the provider. You must be able to demonstrate that every dollar claimed was used in line with a participant’s plan and the scheme rules.
- Establish a “No Document, No Claim” Policy: Make it mandatory for all staff to capture evidence of support delivery immediately. This includes signed attendance logs, digital check-ins, or case notes detailing the service provided, who provided it, and how it aligns with the participant’s plan goals.
- Maintain Clear Service Agreements: Before services begin, ensure you have a signed service agreement with the participant (or their nominee/Plan Manager). This document confirms the rates, services, and terms of service, acting as the foundational evidence for your invoicing.
- Separate Finances: This golden rule of all small businesses is non-negotiable for NDIS providers. Maintain dedicated bank accounts and credit cards solely for business transactions to simplify reconciliation, reduce errors, and maintain transparency.
2. Implement a Regular Reconciliation and Review Cycle
Waiting until the end of the month or quarter to reconcile your accounts creates a mountain of work and hides cash flow problems until it’s too late.
Cycle | Task | Purpose |
| Weekly | Bank Reconciliation | Match all bank transactions to your accounting software records. Catch errors, missing receipts, and identify any bank feed issues immediately. This will make it much easier to source the right data for reconciliation. |
| Weekly | Claims Follow-up | Track all invoices submitted to Plan Managers and the NDIA portal. Follow up on any payments that are overdue or rejected to accelerate cash flow, set up automated reminders where possible to plan managers. |
| Monthly | Financial Reporting | Review your Profit & Loss (P&L) and Cash Flow reports. Identify high-cost areas, track staff utilisation, and monitor profitability by service category. Complete a budget variance review each month and assess where the trends sit in under or over budget and why. |
| Quarterly | Budget Review | Compare your actual performance to your budget. Use this data to adjust spending, plan for equipment purchases, or forecast hiring needs. |
3. Focus on Cash Flow Clarity and Optimisation
Delayed payments are a common issue in the NDIS sector, which can cripple a business, especially one with high staff wages. Proactive bookkeeping is the key to maintaining a healthy cash flow.
- Track Cost of Service Delivery (COSD): Know exactly how much it costs you (including wages, superannuation, travel, and administration overheads) to deliver one unit of support. By understanding your true costs, you can make informed decisions about pricing, service mix, and sustainability before you run into losses. Reviewing your prices regularly will ensure you are responding to market conditions.
- NDIS Claims Tracking: Develop a system to log the date a claim was submitted, the expected payment date, and the actual payment date. This data is invaluable for accurately forecasting cash flow and identifying bottlenecks in the payment process (e.g., a slow Plan Manager). Utilise the right tech stack to track this reliably and with ease. Reporting should not be time consuming.
- Understand Allowable Expenses: Ensure you are correctly classifying and claiming all allowable business deductions, such as professional development, NDIS-specific software subscriptions, and necessary equipment. Seeking professional advice ensures you maximise your legitimate tax benefits.
Summary
Moving to a proactive bookkeeping model means establishing clear, consistent, and compliant processes supported by appropriate technology. It shifts your financial management from a compliance burden to a strategic function that provides clear visibility and control, allowing you to focus on your core mission: providing high-quality support to NDIS participants.
Further Reading: Capital Gains Tax in Australia: How To Calculate Capital Gains Tax
