4 essential accounting tips for NDIS businesses

Running a business in the National Disability Insurance Scheme (NDIS) can be challenging, especially when it comes to accounting. Proper systems and accounting best practice is crucial to achieving sustainable growth of your NDIS business. Here are 4 things to have in place to ensure your NDIS business is in phenomenal shape from an accounting perspective.

1. Keep Accurate Records

One of the most critical aspects of accounting is keeping accurate records. Ensure that you maintain proper records of all transactions, including receipts, invoices, and bank statements. This documentation will help you to track your expenses & income accurately and enable you to make informed decisions about your business. If your numbers are accurate and up to date, you will have great insights into how your business is performing and can make decisions based on this data.

The best way to do this is through a cloud-based accounting software like XERO, which LINK Advisors can help you establish.

2. Set Up a Budget and Monitor Your Cash Flow

A budget is a crucial tool for financial management. It helps you to plan and allocate resources, so you can manage your finances effectively. Set up a budget that reflects your NDIS business's expenses and income. This budget should be realistic, and you should review it regularly to make adjustments where necessary.

Having a watertight budget in place will ensure that you can stay on top of your cash flow. Cash flow is the lifeblood of any business, and it is essential to monitor your cash flow regularly so you can meet your obligations. Create a cash flow forecast in collaboration with your accountant to help you plan and manage your cash flow effectively. This will ensure that you know what bills are upcoming, when you are getting paid and what decisions you can make based on your projections.

3. Take Advantage of Industry Specific Software

Invoicing, rostering and making sure your staff are paid correctly are vital aspects of your business. All of these components and more can be done through a tool like Splose. There is great technology available and to make your life easier, lean on the systems available to allow you to focus on growing your business (instead of being bogged down with administration).

4. Be Tax Effective

As an NDIS business owner, you will have tax obligations that you need to meet. Ensure that you understand these obligations and comply with them. There are multiple different things to stay on top of like Pay As You Go Withholding (PAYGW), Goods & Services Tax (GST) and of course your ongoing Income Tax.

With all of these things that you need to be mindful of, it’s important to seek advice from a tax professional like LINK Advisors to obtain industry-specific advice and guidance about tax effectiveness. This will also assist with your cash flow management as you will have insights about all upcoming tax obligations, allowing you to make decisions in light of upcoming payments.

Conclusion

Proper financial management is crucial for the success of your NDIS business. Keeping accurate records, setting up a budget, use of great technology and understanding your tax obligations, will ensure that your NDIS business is in expert shape from an accounting perspective.

If you want specific advice for your NDIS business reach out to Link Advisors.