Why OT Practice Bookkeeping Needs a Specialist
Occupational therapy practices face a combination of bookkeeping challenges that most general bookkeepers are not equipped to handle. The mix of NDIS funding, Medicare CDM plans, private income, and the sale of assistive technology creates a level of complexity that requires someone who actually knows allied health.
True Tally works exclusively with service businesses and allied health practices. We understand NDIS reconciliation workflows, GST-free health income, and how to set up Xero correctly for an OT practice from day one.
The Specific Bookkeeping Complexity in OT Practices
- NDIS income reconciliation — plan-managed, self-managed, and NDIA direct payments all arrive differently and must be matched to individual service bookings. Batch payments make this particularly complex without a structured workflow.
- GST-free health services — OT clinical services are generally GST-free, but AT sales, vocational assessments, and some other income types may be taxable. Xero must be configured with correct GST codes for each income type.
- Assistive technology tracking — AT sourced for clients needs to be tracked separately from clinical income, with correct COGS coding and GST treatment depending on funding source.
- Medicare CDM reconciliation — Chronic Disease Management plans generate Medicare rebates that need to be matched against appointments and tracked in your accounts separately from NDIS income.
- Practitioner pay splits — OT practices with multiple practitioners often pay on a percentage of billing arrangement. True Tally calculates and processes these correctly in Xero.
NDIS Bookkeeping for OT Practices
Plan-managed clients
Plan-managed NDIS payments are made by a third-party plan manager. Invoice matching and payment reconciliation must track each client's NDIS budget and remaining funding. True Tally builds this workflow in Xero for your OT practice.
NDIA direct payments
Self-managed and NDIA direct payments arrive as batch deposits via the NDIS portal. Each deposit covers multiple services and must be reconciled against the individual service bookings in Cliniko, Nookal, or Halaxy.
Private & Medicare income
Private fee-paying clients and Medicare CDM plan clients generate separate income streams that need distinct accounts in Xero — with correct GST treatment and separate tracking for BAS and income reporting.
Services for OT Practices
- Xero setup for OT practices — chart of accounts with correct GST codes for each income type, bank feeds, and practice management software integration
- NDIS reconciliation workflow — structured process to match all payment types to individual service bookings each month
- BAS lodgement — prepared correctly each quarter, lodged on time with agent extension dates
- Payroll & STP — correct Award classification for OT employees, STP Phase 2, and super before deadlines
- Monthly management reports — P&L by funding stream (NDIS, Medicare, private) by the 15th of each month
Is Your OT Practice's Bookkeeping Set Up Correctly?
The True Tally allied health financial audit tool assesses your current setup and identifies risks in your NDIS reconciliation, GST compliance, and financial reporting. Free, takes five minutes.
Start Free AuditOr book a free 20-minute call: calendly.com/truetally
Frequently Asked Questions — OT Practice Bookkeeping
Is occupational therapy GST-free in Australia?
Yes. OT clinical services are generally GST-free when directed at preventing, diagnosing, treating, or managing a health condition. However, vocational assessments not directed at a specific medical condition, AT sales, and some other income types may be taxable. True Tally configures Xero with the correct GST treatment for each income type in your OT practice.
How do you reconcile NDIS income in Xero?
NDIS payments arrive as a mix of plan-managed, self-managed, and NDIA direct payments — often as batch deposits covering multiple service bookings. True Tally builds a reconciliation workflow that matches each payment to individual service records in your practice management software (Cliniko, Nookal, or Halaxy), ensuring every booking is accounted for and correctly coded in Xero.
What practice management software integrates with Xero for OT practices?
Cliniko, Halaxy, and Nookal are the most widely used systems in Australian allied health. All three have Xero integrations. True Tally configures these integrations correctly — mapping income types to the right Xero accounts and handling GST for each income stream.
How do practitioner pay splits work in an OT practice?
Many OT practices pay practitioners a percentage of their billing (typically 50–65%). The bookkeeper must track billings per practitioner, calculate the correct percentage, process contractor invoices or employee payments, and assess super obligations. True Tally handles practitioner pay calculations monthly for OT practices in Melbourne and Victoria.
What is the allied health financial audit tool?
The True Tally allied health financial audit tool at tracker.truetally.com.au is a free self-assessment for OT and allied health practice owners. It assesses your bookkeeping setup, NDIS reconciliation process, GST compliance, and financial reporting accuracy — and identifies the highest-risk areas in your practice finances in about five minutes.
Ready for an OT Practice Bookkeeper Who Understands Allied Health?
Book a free 20-minute call. We'll review your current setup and give you a fixed monthly quote. Or take the free financial audit first.
Free Financial Audit Book Free CallCall · 0468 159 950 · info@truetally.com.au