Bookkeeping for Healthcare & Medical Practices
Diverse provides specialist Xero bookkeeping for Australian medical practices. We reconcile Best Practice or Genie to Xero, track profitability by doctor and service, manage payroll and contractor GP payments, and deliver management reports by day 10 each month.
Packages start from $400 a month + GST.
For GP clinics, specialist practices and multi-practitioner medical groups.
Your practice software says one thing. Xero says another.
Billings sit in Best Practice or Genie. Medicare deposits land in the bank in batches. Patient payments, private health claims and incentive payments arrive on their own timetables. And somewhere between them, the numbers stop matching.
When they don't match, nothing else can be trusted: not your reports, not your doctor profitability, not your BAS.
Medical bookkeeping is its own discipline. We treat it like one.
What you get
Practice software and
Xero that agree.
Best Practice, Cliniko or Genie reconciled to Xero every month: Medicare payments matched to claims, rejected claims flagged, patient and insurer payments accounted for.
Clear visibility of doctor
profitability.
Revenue, service fees and costs by practitioner. Know what each doctor and service line contributes before you add a GP, a specialist or a site.
Reporting you can rely on.
Management reports by day 10, built on a chart of accounts designed for medical practices, not borrowed from a retailer.
Payroll that runs smoothly.
Reception, nursing and practice staff paid correctly, super paid with every
pay run under Payday Super, STP lodged. Contractor GP and locum payments recorded properly and kept separate.
What we understand about medical practices
AREA
WHAT WE HANDLE
Billing models
Bulk billing, private billing and mixed billing, tracked separately so you can see your bulk billing percentage
Medicare claiming
Claims reconciled from your practice software through to Medicare deposits, including rejections and resubmissions
RACGP practice & supervisor payments
Typically paid monthly, for those who have a registrar training in their practice.
Incentive payments
Practice Incentives Program (PIP) and other incentive payments reconciled and planned for in your cash flow
Private health insurance
Insurer claims and gap payments matched to patient accounts
GP contractor arrangements
Service fee arrangements recorded correctly, with contractor and employee payments kept distinct
Classification risk
Contractor vs employee and payroll tax exposure flagged early, so your accountant can confirm the position
Locums
Locum and agency payments recorded and allocated to the right costs
GST
Most medical services are GST-free, but service fees, room hire and some non-clinical or cosmetic services aren't. We code them correctly
Equipment
Asset register and depreciation records kept up to date for your accountant
Lease vs purchase
Clean figures to compare leasing and buying equipment, so the decision is made on numbers
Consumables and stock
Consumables and stock tracked, with year-end stocktakes built into your calendar
Six mistakes we fix in practices every year
Incorrect Medicare revenue recognition & payments going
to the wrong places.
Batched deposits recorded as lump sums, so
revenue never matches claims. Issues with Doctor’s PRODA account setup, resulting in Medicare payments being sent to the wrong bank account
by mistake.
Not tracking bulk billing
percentage
You can't manage your billing mix or incentive eligibility without it.
Misclassifying GP contractors or Allied Health contractors as employees
(or the reverse). It distorts your costs and creates payroll tax and super risk. While GPs currently benefit from a payroll tax exemption, Allied Health do not.
Poor cash flow management with incentive payments
Lumpy quarterly payments treated as regular income, leaving gaps in between.
Incorrect GST treatment.
GST-free and taxable income coded the same way, leading to BAS errors.
No year-end stocktake.
Consumables written off as they're bought, so
profit is overstated or understated.
CASE STUDY: LARGE HEALTH GROUP
A large regional health group came to us months behind, despite having an internal finance team. There was no clean reconciliation between Best Practice and Xero. The Board had no reliable reporting and couldn't see which doctors or services were profitable. ATO issues were building, and the annual audit was delayed.
✓ We cleaned up the file
✓ Reconciled Best Practice to Xero and rebuilt their reporting.
✓ The Board now receives accurate reports by day 10
✓ ATO matters resolved
✓ Audit completed on time
Why practices choose Diverse
✓ We already know Best Practice, Genie, Cliniko and medical billing. You won't pay us to learn.
✓ A dedicated bookkeeper backed by a Team Leader. Your reporting never stalls because one person is away.
✓ 100% Australian team. No lock-in contracts. Three-month satisfaction guarantee.
What it costs
Packages start from $400 a month + GST.
Medical Practice
3 doctors | 8 staff | $2M turnover | Best Practice software integration
What they need:
● Weekly processing
● Best Practice to Xero reconciliation
● Monthly Board reports
● Monthly IAS & Quarterly BAS
● EOFY workpapers, liaison with accountant
Payroll add-on:
● Fortnightly payroll processing, 10 staff
● Super, STP, onboarding & termination management
● Annual STP finalisation & WorkCover lodgements
Monthly Investment: $1,190 + GST per month
What they get:
Clear financial visibility on doctor profitability, reliable reporting, and payroll that runs smoothly behind the scenes.
Frequently asked questions
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A medical practice bookkeeper reconciles your practice management software to your accounting file, records Medicare, private and insurer income correctly, processes payroll and contractor GP payments, lodges BAS and produces monthly reports showing profitability by doctor and service.
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We match the billings and payments recorded in Best Practice to the deposits in Xero: Medicare batches, patient payments, private health insurer payments and incentive payments. Rejected or unpaid claims are flagged for follow-up. Done monthly, it means your reported revenue matches what you've actually billed and banked.
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Most medical services are GST-free, including Medicare-claimable services and other services generally accepted as necessary treatment. Some aren't, such as cosmetic procedures, and service fees or room hire charged to contractor doctors usually attract GST. You should confirm the treatment of anything unusual.
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They can. State revenue offices have taken the view that some contractor and service fee arrangements fall within payroll tax rules. The answer depends on how your agreements and payment flows are structured. We keep these payments recorded accurately and flag risks early so your accountant can advise.
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Practice Incentives Program payments arrive quarterly and can vary, so they shouldn't be treated as regular monthly income. We reconcile them as they arrive and plan for them in your cash flow forecast, so the quieter months between payments don't catch you short.
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Diverse packages start from $400 a month + GST. Practice pricing depends on the number of practitioners, entities, payroll complexity and reporting needs. Every quote is a fixed monthly fee with no lock-in contract.