Accounting Systems: The Key to a Profitable Business

Profitability remains a major stumbling block for NDIS businesses. According to the latest State of the Disability Sector Report, only 43% of NDIS service providers made a profit in the last year. One in three operated at a loss.

NDIS accounting software won’t remove all the hurdles to profitability. NDIS prices are still tightly controlled, and staffing shortages continue to block business growth for many providers.

However, accounting software can provide the insights required for better financial management, so you can make the most of your tight profit margins, stay on top of your cash flow and make informed business decisions.

Do You Really Need Accounting Software?

It’s possible to operate without accounting software. However, doing so can come at a hefty price.

NDIS accounting is complex, especially when it comes to super calculations, payment requests and transport deductions. You can lose hours each week to invoicing, accounting and other admin tasks.

Lost hours aren’t the biggest problem with poor accounting systems, however. There’s also a significant risk of compliance issues. Not only does the National Disability Insurance Scheme have strict requirements for financial management, but SCHADS award non-compliance catches out more than one in three NDIS providers. 

And that’s without considering the lost opportunity cost. Accounting software gives you an at-a-glance understanding of your business’ accounts, so you can make the right decisions to maximise profits and shore up your financial stability. 

While one-person teams may be able to do their accounting alone, most NDIS service providers will find that accounting software is worth the investment.

How Accounting Systems Help NDIS Businesses 

NDIS accounting software can help your business by:

1. Providing Financial Insights 

An accurate understanding of your provider business’ financial health is the first step to improving profitability. Accounting software supports NDIS businesses by accurately tracking income and expenses and automating financial reporting. It ensures that you have a clear understanding of your finances at any given time. 

This will help you monitor your cash flow, identify profitable and unprofitable areas, and take action. For example, you could realise that you’re frequently having to pay support workers for travel time that exceeds the amount you can claim against the NDIS. With this insight in mind, you can rework your roster and improve your per-service profit margins.

2. Improving Compliance with NDIS Regulations

Navigating NDIS regulations can be daunting. The National Disability Insurance Scheme has stringent financial management and reporting requirements, making compliance a critical concern.

Accounting software significantly reduces the risk of non-compliance, especially when it’s integrated with your shift records. You can import the latest NDIS Pricing Arrangements and Price Limits, add proof of expenses to each shift and even request clients’ digital signature on shift records. And since it’s all done digitally, you can reduce the risk of human error.

You’ll have the paper trail you need to demonstrate your compliance, not just with NDIS regulations, but also with Australia’s tax laws and the SCHADS award.

3. Planning for the Future

NDIS accounting software doesn’t just display the present-day financial health of your business. It also helps you forecast your future revenue and expenses so you can create realistic budgets, decide whether to take on more support workers, and choose which services to offer. 

Financial forecasts are essential for effective financial management. They can help future-proof your business and provide a roadmap to profitability.

Tips for Implementing Your NDIS Accounting Software 

To see the most benefits from your NDIS accounting software, make sure to:

Integrate It With Your Existing Systems

Check that accounting software is compatible with your shift records, payroll and other NDIS software. This will boost accuracy and help you save time.

Create Complete Records

Make sure to attach expenses to your shift records, import the latest price guides and fill in SCHADS award details. This will allow you to auto-generate more complete accounts.

Use the Reports Feature

Auto-generate reports to better understand your financial performance, so you don’t have to spend hours poring over your accounts.

Integrated Software Solutions that Give You More Control Over Your Business

ShiftCare’s NDIS software streamlines the admin side of running your disability service business. It helps you save time in rostering, client management, document management, invoicing and more. And with accounting and payroll integrations, staying on top of your finances is easier than ever. 

Discover how your NDIS business can thrive with the right tools. Try ShiftCare for free.