This month in my  Financials 101 series,  we'll  understand your Profit & Loss Statement . By watching my video, you’ll learn how to interpret your statements and use these insights to make smarter, more informed decisions. Financials 101: Understanding the Profit & Loss Statement The Profit & Loss Statement Let’s get straight to the heart of it: the Profit and Loss (P&L) statement is the MVP of financial reporting for medical practices. Also known as the income statement, this trusty document is your clinical-grade snapshot of what’s coming in, what’s going out, and whether you’re left with a healthy profit. The basic formula is straightforward enough: Revenue – Expenses = Profit But here’s the twist: not all profit is created equal, and medical practices need to dig deeper to get the full picture. Sure, your accountant would never brave a meeting without the P&L in hand (they know better), but as a practice owner, you need to go beyond the basics. Gross Profit vs. EBITDA Gross Profit: Think of gross profit as the pulse check for day-to-day operations. It’s your total income from sales minus direct costs related to those sales. For example, if vaccine revenue is substantial, gross profit is the amount remaining after subtracting vaccine-related expenses. EBITDA: EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortisation) is your business’s “pure performance” metric. Stripped of external factors like taxes or loan structures, EBITDA lets you compare apples to apples with other practices or even benchmark your own growth over time. I lean on EBITDA when analysing how practices perform, especially during valuations or when buying/selling shares. Here’s a simplified version of what your P&L might look like: Trading Income : Includes patient fees, registrar income, and facility service fees. Direct Expenses : Registrars’ wages and superannuation, medical supplies, and vaccines. Gross Profit : Revenue minus direct expenses, your immediate margin. Other Income : Room rental or government incentives. Operating Expenses : Cleaning, advertising, rent, admin wages, etc. From here, subtract operating expenses from gross profit to calculate EBITDA. Easy enough, right? But here’s where things get tricky: expenses like medical supplies or rent don’t need to spike very much to shrink the profit margin faster than a vaccine shortage on flu season’s first day. A few key standards for general practices: Medical Supplies : Less than 1.5% of billing. Rent : Ideally, 5-7% of billing. Admin Wages/Super : Around 18%, though creeping above 20% is a red flag signalling inefficiencies. Why You Should Care Here’s the thing: not understanding your P&L is like practising medicine without reading lab results. Sure, you can make some educated guesses, but you’re risking misdiagnosing what’s actually happening under the surface, and that’s the last thing you want in your practice’s financial health. The Profit and Loss statement isn’t just paperwork; it’s your practice’s lifeline for strategic growth. Sure, it’s easy to summarise as “revenue minus expenses,” but knowing which profitability metrics to focus on (like EBITDA) and spotting trends in expenses could mean the difference between stagnation and sustainable growth. So, why should you care? Because a healthy bottom line fuels a healthy practice, and allows you to focus on the part you love most: patient care. Stay tuned for my next video, which will explain the cash summary report for medical practices.

Why Financial Literacy Matters for Medical Practices For many medical practice owners, understanding financial statements is a challenge. In a recent poll, only 36% of practice owners said they had reviewed their balance sheets in the past 60 days, leaving 64% operating in the dark. Even more concerning, 95% of medical practice owners struggle to fully understand their financial statements. If that statistic resonates with you, you’re not alone. Many professionals across Australia describe their experiences with financial data as confusing, overwhelming, or even boring. As someone who has worked with countless medical professionals, I’m passionate about changing these stats. That’s why I created a Financials 101 series to provide practice owners with the tools to gain the confidence and clarity they need. If you don’t understand your financials, you may be navigating your practice with incomplete information, which is risky. Leading to poor decision-making, increased fraud and theft risks, and constant stress. In my Financials 101 series , we’ll break down the Profit & Loss (P&L) Statement, Balance Sheet and Cash Summary step-by-step. First in the series is understanding your Balance Sheet . By watching my video, you’ll learn how to interpret your statements and use these insights to make smarter, more informed decisions. Financials 101: Understanding the Balance Sheet The Balance Sheet The balance sheet  is often misunderstood, but it provides critical insights into your practice’s financial health. Divided into three sections, it helps you assess exactly where your business stands: Assets This includes everything your practice owns, such as cash balances (current assets) and long-term investments like fit-outs or goodwill (non-current assets). Liabilities This covers what your practice owes. Current liabilities include debts you’ll pay in the next 12 months, like wages or ATO payments. Non-current liabilities include long-term commitments like loans for equipment or leasehold improvements. Equity Equity reflects the owners’ value in the business, including retained earnings (profits that haven’t been distributed back to owners) and initial investments in the practice. A key concept to understand is the balance sheet equation: Assets = Liabilities + Equity Why You Should Care Your balance sheet provides answers to critical questions like: Are we financially healthy?  For instance, do you have enough liquid assets to cover your current liabilities? Where did the cash go?  Events such as dividend payments or new loans can significantly impact your assets and liabilities. Understanding your financial statements, particularly your balance sheet, is essential for running a thriving medical practice. Here’s why: You’ll identify and avoid potential cash flow issues. You’ll see risks early, such as mounting liabilities or asset depletion. You’ll gain confidence in the decisions shaping your practice’s future. The best person to safeguard your practice’s financial future is you . Stay tuned for my next video, which will explain the profit and loss statement for medical practices.

Conversations with clients are often difficult at the moment, but I couldn’t love my work and feel more valued than I do right now. One day, I’m sitting with a practice owner who’s wondering whether they can keep going with the lack of doctors in their rural area. Next, I’m talking to someone through a partnership breakdown that has nothing to do with money and everything to do with culture and emotion. And then there was the doctor last week who apologised for being “a mess” while stressing about a significant business decision. BTW, you are not a mess. You care deeply about the outcome for your team, your family, and your patients!. I make it a mission to remember that behind every set of financials is a human, usually just trying to do their best. And sometimes they need someone to translate the financial noise, talk straight, and remind them that what they’re feeling is entirely normal. That is the part of my job that lights me up. The moment someone says, “Thank you, I feel clearer now,” or “We’ve got this, Kelly.” It feels like I am making a real difference, not just a tax break or a set of numbers. So if you’re a practice owner carrying the emotional load of your business right now, you are not alone. Many tough conversations are happening. And I’m happy to be in your corner. 💛 Conversations that matter

What Medical Practice Owners Need to Know  From 1 July 2026, the new Payday Super laws will require all employers to pay super at the same time as wages, rather than quarterly. For medical practice owners, this represents one of the most significant shifts in recent years in terms of payroll and cash flow. Why It Matters to Your Practice Payday Super strengthens employee protections by ensuring super is paid on time and in line with each pay cycle. While the change benefits staff by improving visibility and boosting long-term retirement savings, it does introduce new responsibilities and administrative requirements for you and your payroll team. Operational and System Changes To comply with the new rules, practices will need accurate and verified superannuation details before an employee’s first pay run. Any missing or outdated fund information may delay payments and create compliance issues. Transitional pay runs around July 2026 will require extra care to ensure the correct rules apply. Practices using manual clearing houses or older payroll configurations may need to upgrade or reconfigure their systems to handle per-pay-cycle super. Cash Flow Implications Many practices currently rely on the timing of quarterly super, along with incentives or other lump-sum income, to help manage cash flow. Under Payday Super, super becomes a regular, ongoing outflow aligned with wages. This will require updated budgets and cash-flow projections to ensure weekly or fortnightly super payments can be met without feeling the pressure. Reputational and Compliance Risks Late or missed super contributions already attract ATO penalties, but they also damage staff trust. In a competitive workforce environment, super delays can undermine your practice’s reputation as a responsible and attractive employer. Payday Super aims to eliminate these issues through increased ATO visibility and real-time reporting. Automation Changes for GrowthMD Clients To support smooth compliance, GrowthMD clients will be encouraged to transition away from ATO or clearing house uploads to fully automated super payments (if they haven't transitioned already). Automation reduces risk, eliminates human error, and ensures super is paid accurately with every pay run. GrowthMD will work closely with your practice to prepare early and minimise any compliance or cash flow impacts.

Working with medical practices can actually be an emotionally charged job, who would have thought? Most people picture accountants buried in spreadsheets and tax files. And yes, there are numbers, strategy, and compliance. But when you work with doctors and practice owners, you quickly learn that providing excellent accounting service isn't just technical; it requires strong emotional skills and a genuine care for people. Practice owners don't need only numbers; they need someone who can support them through pressure, change, uncertainty, and the fundamental human challenges that come with running a healthcare business. Accounting for Medical Practices Is Emotional Practice ownership is not simply a business decision; it's usually purpose-driven, deeply personal, and tied to serving a community. With that comes a tremendous sense of responsibility to patients, to staff, to family, and to fulfil their own care vision. When you consider the financial realities of healthcare, especially in General Practice, where bulk-billing pressures coexist with the need to remain financially viable, it becomes clear that supporting practice owners extends beyond technical accounting. It requires clarity, compassion, and a steady presence to help navigate decisions with confidence and care. Over the last month, I've been reminded that my role is as human as it is technical. When New Practice Owners Take the Leap Recently, I spent time with new practice owners who have just signed a major commercial lease, a commitment big enough to keep them awake at night. They are exceptional clinicians, but business ownership is a new venture for them. They don't yet feel fluent in financial concepts or tax structures. They are stepping out of their comfort zone and into an unfamiliar world filled with uncertainty and responsibility. In those moments, my work extends far beyond setting up systems and cash flow models. It is about keeping things on track without overwhelming them, offering apparent oversight, translating complex financial realities into language that feels understandable and empowering, and ensuring they never feel lost or out of control. My purpose is not just to manage the numbers but to build confidence, clarity, and calm. When a Practice Is Carrying the Community Then there are the conversations with practice owners who are doing everything they can to keep their doors open, supporting patients, leading their teams, and trying to remain financially viable in an environment where recruitment is difficult and funding models are stretched. In some areas, practices are genuinely at risk of closing simply because there aren't enough doctors, or because rebates and reimbursements don't align with the real costs of delivering high-quality care. The pressure is immense. These owners aren't just making business decisions; they feel the weight of their entire community relying on them. Sometimes they're exploring how to adapt. Sometimes they're trying to decide whether continuing in the same way is even sustainable. And sometimes they need space to acknowledge how heavy it all feels. My role isn't just reporting numbers; it's about listening, understanding, and helping navigate pathways that support both the practice and the people behind it. These are difficult decisions that affect more than just the bottom line. When Personal Life and professional life intersect I've also supported clients navigating separation and divorce, family tragedies, and personal transitions while still showing up every day for their patients. No training module prepares you for helping someone through both immense personal and business strain simultaneously. It requires accuracy and objectivity, yes, but also empathy and steadiness. Numbers are only one part of the picture; life continues behind the scenes, and sometimes that's where the real work lies. When Partnerships Shift Business partnerships are typically founded on trust and a shared vision, but like any relationship, they can become challenging. When partners no longer align, it's rarely just about finances, values, communication, burnout, or differing approaches to business ownership and patient care. Sometimes, life moves people in different directions. In those moments, I often walk a tightrope, aiming to keep the business steady while remaining objective and fair, being sensitive to the personal layers underneath, and guiding decisions without taking sides. Sometimes the outcome is renewed clarity and alignment. Sometimes, a respectful exit. Either way, the goal is to achieve dignity, stability, and preserve the practice and the people within it. Calling in my Emotional Intelligence I often wonder if I genuinely have the skill to navigate all of this. Then I reflect on my own journey building a business, navigating stress, and being a young single parent (before I met my incredibly supportive husband Stephen), and developing resilience the hard way. I understand responsibility, pressure, and uncertainty not as abstract concepts, but as lived experience. That perspective enables me to show up with empathy and calm, even when challenges feel overwhelming and decisions are complex. This Is the Work Accounting in the medical world is not just compliance and spreadsheets. It's listening. It's about translating complexity into confidence, supporting people through defining personal and professional moments, and holding space when emotion and leadership collide, because they often do. Doctors spend their days caring for others. I see my work as helping care for them and the practices they work so hard to build. Numbers matter. But people matter more. To Practice Owners If you're building or running a practice and it sometimes feels overwhelming, that doesn't mean you're doing it wrong. It means you care. It means you're committed and human. You don't need to navigate the financial and leadership realities of practice ownership alone. GrowthMD supports medical practice owners through every stage with clarity, structure, honest conversations, and genuine partnership. Thank you to all our clients for placing their trust in us.

The Australian Government’s $7.9 billion investment in Medicare marks the most significant policy shift for general practice in decades. Set to take effect on 1 November 2025, these changes will reshape the way practices operate, creating both opportunities and challenges. If you’re wondering how these new Medicare incentives apply to you, and if your practice should enrol, you’re not alone. Cubiko's Chris Smeed hosted this webinar, joined by Kelly Chard and RACGP Vice-President Dr Ramya Raman to work through the changes from 1 November. By watching the session, you’ll learn how to: Get an easy-to-understand breakdown of the new Medicare incentives. Learn practical steps to prepare your practice for success under the updated framework. Receive 1-hour CPD credit to stay compliant and grow professionally.

As a director of a medical practice or any company, it’s essential to understand your obligations, especially when it comes to ATO debt management. One of the most urgent issues I often see directors encounter is receiving a Director Penalty Notice (DPN). But what exactly is a DPN, and how does it impact you as a director? Let’s break it down. What Is a Director Penalty Notice? A Director Penalty Notice (DPN) is a notice issued by the Australian Tax Office (ATO) to directors, holding them personally liable for a company’s unpaid tax obligations. These obligations may include GST, PAYG withholding, or other amounts reported on Business Activity Statements (BAS). The ATO uses DPNs to collect outstanding tax liabilities from directors if it believes the company is unable to repay the debt on time. And the reality is, DPNs are becoming more common as the ATO ramps up its debt collection efforts. Why Are DPNs Becoming More Common? Over the past five years, the ATO’s debt book has nearly doubled, rising to over $90 billion AUD. With such an astronomical figure, the ATO has intensified its focus on compliance and debt collection. As a result, more directors are receiving DPNs, which create a parallel personal liability for the company’s debts. What Happens When You Receive a DPN? Let’s explore this through an example: Imagine you’re a director at a medical practice, along with three other doctor-directors. The company owes $100,000 to the ATO in unpaid GST and BAS liabilities. If the ATO determines that your company cannot meet its repayment obligations, it can issue a DPN to each director. Here’s the critical part: Each director becomes personally liable for the full $100,000 debt. The liability is not divided proportionally (e.g., $25,000 per director for four directors); instead, each director is individually on the hook for the entire $100,000. Once the debt is repaid, it is reduced proportionally across all DPNs issued; however, the ATO may still pursue each director for the full amount. How Can the ATO Recover the Debt? If you’ve received a DPN, the ATO may recover the debt in several ways, including: Garnishee Notices: These allow the ATO to access income from your personal employment or other sources Legal Action: The ATO can escalate recovery efforts, potentially resulting in court proceedings. What Should You Do If You Receive a DPN? Receiving a DPN is serious, far more than a simple “heads-up.” It’s a time-sensitive matter, as you only have 21 days to act before the liability becomes locked in. Here’s what you should do immediately if you receive a DPN: Contact Your Accountant: Seek professional advice from your accountant or a specialist immediately Communicate with the ATO: Work with your adviser to explore repayment options and negotiate terms Assess the Company’s Compliance: Review the company’s financial status and ensure tax obligations are up to date moving forward. How to Minimise the Risk of a DPN The best way to manage DPNs is to prevent them from happening in the first place. As a director, you must: Maintain good oversight of the companies you oversee Stay vigilant about tax compliance and ensure BAS, GST, and other liabilities are paid on time Work proactively with your accountant to address potential issues early. At GrowthMD, we specialise in helping medical practices and directors navigate their tax obligations with confidence. Our team understands the unique challenges directors face, and our goal is to help you avoid stressful situations like DPNs altogether. If you’re concerned about your liability as a director or have received a DPN notice, reach out to our team today. We’re here to provide expert advice and help you protect your financial well-being. Please don’t wait until it’s too late. Contact us today at GrowthMD to ensure you’re prepared for any challenges that may arise as a director.

During our  1-hour live session, we provided an overview of Cubiko Calculate , a simple  and accurate service fee platform,  followed by an in-depth Q&A session, and addressed some challenging medical questions. As promised, here’s the recording from the session. While we experienced a late start due to a recording oversight, the video captures all the insights and discussions shared. Calculate by Cubiko If you have any questions or are ready to get started with Cubiko Calculate, don’t miss out on the exclusive GrowthMD client discount of 20% off for the first six months. Feel free to contact Sean directly at sean.fincham@cubiko.com.au .

As an investment property owner, filing your tax return can feel overwhelming, especially with the complexities of deductions and compliance specific to your investment properties. To simplify the process, we’ve created a property investors tax return checklist to help you stay organised and ensure you maximise your eligible deductions, all while remaining fully compliant with tax regulations. The  GrowthMD team is always here to help you sort through the complexities and make the tax season less stressful, feel free to contact us anytime.

At least 50% of medical practices have some form of financial internal control issue. That is my experience, anyway, based on talking with hundreds of owners and PMs this year. AI and Medical Practices For example: One person controls the invoicing and bill payments One person rosters staff, approves timesheets and handles payroll  One person handles receipting and doctor income recs  It’s an easy problem to solve these days.  You can speak to your accountant or bookkeeper, or start with this AI prompt: "Create a one-page tick-box checklist for an Australian Medical Practices to minimise fraud/error. Cover Accounts Payable, Payroll, Bookkeeping, and Banking & Cash Handling. Include dual approval for payments, independent reviews (bank recs, supplier changes, payroll, reports), and clear role separation. Require individual logins, 2FA, and annual access reviews. For Banking & Cash Handling: no single person has full control, two staff count cash, cash is banked daily and reconciled to the PMS, EFTPOS links directly to PMS, and online banking is restricted by role (setup vs approval). Make it practical and ready for immediate use." Download the GrowthMD Fraud & Risk Checklist for Medical Practices: