Industry Specialist

Accounting for NDIS Businesses

At Vivid Partners, we understand the NDIS business landscape in depth. Our specialised accounting services are designed specifically to accommodate the distinct requirements of NDIS businesses.

Dedicated NDIS Business Advisors

NDIS service providers get into business with a goal to help their clients best but don't consider things from a financial or tax perspective. It is very easy to become overwhelmed with all the reporting and compliance requirements.

Through our experience dealing with a large number of successful NDIS businesses, we offer tailored solutions that cater to your unique needs. Whatever your goal is — optimal tax structure, protecting personal assets, or growing your business and personal wealth — us at Vivid Partners can help you.

Why navigate the financial challenges of the NDIS business by yourself when you can have Vivid Partners by your side? Reach out to us today to find out how we can assist you in your journey.

To run your NDIS business, you need to:

Have an accounting system in place
Invoice clients and collect payments
Pay bills on time
Manage day-to-day accounting
Handle payroll, STP lodgements & super
Lodge BAS & Tax Returns
Bookkeeping and record-keeping
Manage cashflow
Track business performance
Implement measures to meet KPIs & drive profitability

Accounting Tips for NDIS Businesses

Running an NDIS business can be challenging. Setting your business the right way and having the right processes is crucial in achieving sustainable growth.

Have a Plan & Budget

Failing to plan is planning to fail. We can get involved in your budgeting process — from advice and review right through to full design and preparation.

Monitor Performance

Monitoring payments received from NDIS participants along with money spent on business expenses can help you manage your business efficiently.

Understand Your Profit Margin

Profit is the income from providing services to NDIS participants less the cost of providing such services — staff, equipment, travel, marketing & admin.

Manage Cashflow

Understand the timing difference between when you receive payment from NDIS and when you have to pay your staff and suppliers.

Keep Proper Records

Maintain proper records of all transactions. Use cloud-based accounting software like Xero, which Vivid Partners can help you establish.

Use Technology to Save Time

Software designed for NDIS businesses can save you time and ensure your records are accurate and compliant with NDIS regulations.

GST Recognition

Most services provided to NDIS participants are GST-free if certain criteria are met. However, NDIS businesses may provide GST-taxable services.

Have a Tax-Effective Business Structure

Your business structure significantly affects legal risk, asset protection, tax obligations, and the ability to scale as your business grows.

What Expenses Can NDIS Businesses Claim?

You can claim a tax deduction for most expenses you incur in carrying on your business if they are directly related to earning your assessable income.

3 Golden Rules for Valid Business Deductions

The expense must have been for your business, available as an allowable deduction and not for private use.

If the expense is for a mix of business and private use, you can only claim the portion used for your business.

You must have records to prove it.

Cost of Providing Services

Staff costs, materials, equipment and any other costs associated with providing the service.

Travel Costs

Any travel costs incurred to provide the service, such as petrol or public transport costs.

Marketing & Advertising

Costs associated with promoting and marketing your business and services to potential clients.

Administration Costs

Costs of running your business — accounting, insurance and stationery costs.

Training Costs

Seminars, conferences, professional development and training courses relevant to your NDIS services.

GST Issues for NDIS Businesses

A common question that we get at Vivid Partners from NDIS businesses is about GST on income. The services provided to the NDIS participant are GST-free, if all of the following criteria are met:

GST-Free Criteria

The NDIS participant has an effective NDIS plan
The service is of reasonable and necessary support specified in the participant's NDIS plan
There is a written agreement between the provider and the NDIS participant
It is a service covered by one of the tables in the NDIS Determination

Once your income exceeds $75,000 annually, you need to do GST reporting. NDIS providers can also claim GST credits on business-related purchases. If the NDIS business provides services outside of the criteria above, the income could be GST-taxable.

What To Do When You Have Profit

Your business is doing well and you have consistent profit and cashflow. Here are smart options to put your success to work.

Improve Your Lifestyle

Look for strategies that add the most value to your business and lifestyle. Invest in yourself, outsource tasks, and free up time for family.

Build Wealth by Investing

A cash buffer gives you flexibility to jump on investment opportunities — equipment, property, or other ventures — as they arise.

Pay Down Debts

Paying down debts decreases interest costs and frees up cash for other uses, improving your business's overall financial health.

Diversify Your Income

Spread investments across shares, bonds, managed funds, real estate, or other physical assets. Consider investing in another existing business.

Invest Back Into Your Business

Use extra funds for capital expenditures — equipment, property, or technology upgrades — to increase efficiency and productivity.

Let Us Handle Your NDIS Accounting

The right support can make all the difference to achieve your goals. Why navigate the financial challenges of the NDIS business by yourself when you can have Vivid Partners by your side?