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Key Areas to Review Before 31 March 2026 The Fringe Benefits Tax (FBT) year ends on 31 March 2026, so now is the time to review any additional benefits you’ve provided to employees or associates. FBT can apply to benefits you provide beyond salary or wages, such as vehicles, entertainment, car parking, paying personal expenses, or providing goods or accommodation. If these aren’t managed properly, they can create unexpected tax and compliance issues. Motor Vehicles Provided to Employees Providing vehicles to employees is one of the most common FBT triggers. If an employee has access to a company car, FBT can apply even if it’s mainly used for work. In particular, if the car is kept at an employee’s home, it’s generally considered available for private use. There are two main ways to calculate FBT: the statutory method (based on 20% of the car’s value) or the operating cost method, which relies on a valid logbook. If you’re using a logbook, make sure it has been kept in the last 5 years, and it still reflects current usage patterns. We suggest a tracking app like Driversnote to help you compile your 12-week logbook. Before 31 March, don’t forget to record odometer readings. Also, keep in mind that employee contributions, such as paying for fuel, can reduce the FBT liability, but only if they’re properly tracked. The ATO continues to focus on logbooks and private use, particularly where vehicles are garaged at home. Electric Vehicles (EVs) Electric vehicles (EVs) can be exempt from FBT when provided by an employer to an employee as a car fringe benefit (not when purchased personally). To qualify, the EV must be a battery electric, hydrogen, or eligible plug-in hybrid (PHEV), first held and used on or after 1 July 2022, and below the luxury car tax (LCT) threshold for fuel-efficient vehicles. PHEVs only qualify if first provided before 1 April 2025. The exemption covers the car and associated running costs, including charging. While no FBT is payable, employers must still calculate and report the benefit through Single Touch Payroll. Entertainment and Gifts for Staff Providing meals, events, or gifts is a great way to build culture, but the FBT treatment can vary depending on how the benefit is structured. Entertainment, such as meals, drinks, or social events, can give rise to FBT, although exemptions may apply in some cases, such as minor benefits or certain on-site meals. Non-entertainment gifts, such as hampers or gift cards, are generally easier to manage and may be exempt if they are under $300 and considered minor in the circumstances. What about Business Lunches and Staff Functions? A common trap is business lunches. Even where there is a genuine business purpose, off-site meals are usually treated as entertainment. This means the employee portion can still be subject to FBT, even if clients are present. Simply calling a lunch or dinner a business meeting doesn’t change the FBT treatment. For staff functions, the outcome depends on factors like whether the event is on-site or off-site, when it’s held, and the cost per person. Small changes, like moving off-site or exceeding the $300 threshold, can affect the result, so it is always best to get advice if you are planning a big staff function. Loans, Expense Payments, Goods and Accommodation FBT can also arise where you provide loans, pay personal expenses, or provide goods or accommodation to employees. Loans to employees must have interest charged at the ATO benchmark interest rate to ensure FBT is not triggered. Expense payments and goods may be exempt if they would have been tax-deductible to the employee, but this needs to be assessed carefully. Car parking is another area that’s often missed. Where you pay for or provide parking at a commercial facility, this can trigger FBT and should be reviewed. Accommodation and housing benefits also have specific valuation rules and can create significant exposure if not structured correctly. Where We’re Seeing Clients Get It Wrong The most common issues we see are assuming no FBT applies because something is “mostly business,” relying on outdated logbooks, or incorrectly treating entertainment and reimbursed expenses. FBT isn’t just a year-end exercise; it requires ongoing attention throughout the year. Businesses that assume it doesn’t apply, particularly smaller ones, are often the ones caught out. FBT Action Checklist We recommend you review your FBT risk before 31 March 2026, using the following table to help: Area Action Item Motor Vehicles Review company vehicles provided to staff Ensure odometer readings are captured as at 31 March 2026 Check for valid and current logbooks Identify any employee contribution calculations required and consider any expenses paid personally by the employees Review electric vehicle eligibility and reporting requirements Entertainment & Gifts Review entertainment and gift expenditure for FBT implications Consider the minor benefits exemption where appropriate Keep records of costs, recipients, and benefit types Assess staff functions (location, cost, attendees) individually Loans & Expenses Check for employee loans and whether interest has been charged Review reimbursed personal expenses or expenses paid on an employee’s behalf for deductibility General Review all benefits for potential FBT liability Ensure all FBT reporting and calculations are completed by 31 March Let Us Help You Stay Ahead of FBT FBT is often overlooked, but it can lead to unexpected costs if not managed properly. If you’re a practice owner, it’s also an opportunity to structure benefits more effectively, not just a compliance exercise. If you’re unsure how FBT applies to your situation, our team at GrowthMD can help you identify both risks and planning opportunities.

ATO Targets Holiday Home Deductions: What Property Owners Need to Know Many taxpayers like the idea of owning a holiday home they can enjoy personally while earning rental income on the side. ATO Targets Holiday Home Deductions The concept is appealing: use the property with family a few times a year, rent it out through an agent or platforms like Airbnb when you are not using it, and claim tax deductions for interest and other ownership costs. Historically, many taxpayers have approached this by apportioning expenses between private use and rental use, adjusting deductions based on the number of days the property is rented. However, the ATO’s Draft Practical Compliance Guideline PCG 2025/D7 signals a shift in how these arrangements may be assessed. Rather than relying solely on a simple day-count calculation, the ATO will look more closely at whether the property is genuinely operated as an income-producing rental or primarily a private holiday home, which could mean some deductions are no longer available. The ATO’s Focus: Lifestyle Assets vs Genuine Rentals The new guidance focuses on whether a holiday home is genuinely operated as an income-producing investment or whether it is primarily a private lifestyle asset that occasionally earns rental income. The ATO has revived the concept of a “leisure facility” under section 26-50 of the Income Tax Assessment Act 1997. If a property is mainly used for holidays or recreation, deductions for ownership costs such as interest, rates and maintenance may be denied, even if the property earns rental income.  In other words, earning rental income alone does not guarantee deductions. The ATO’s Traffic Light Risk Framework To help taxpayers understand how arrangements may be viewed, PCG 2025/D7 introduces a traffic light risk framework. Green zone - Low risk Properties genuinely operated as commercial rentals are more likely to fall in the green zone. Typically, the property is widely advertised, priced at market rates and available for rent for most of the year with minimal private use. Amber zone - Medium risk These arrangements involve a mix of private and rental use. The property may be available for rent for significant periods, but private use remains a meaningful factor and the ATO may scrutinise these arrangements more closely. Red zone - High risk Properties primarily used as a private holiday home are likely to fall into the red zone. In these cases, deductions for ownership costs may be denied and the ATO is more likely to review the taxpayer’s claims. Behaviours That Increase Risk The ATO’s assessment goes beyond simply counting rental days vs private days. Instead, it looks at the overall pattern of behaviour surrounding the property. Examples of higher-risk features include: Owners blocking out peak rental periods such as Christmas, Easter or school holidays for personal use. Limited efforts to secure bookings or maximise rental income. Large portions of the calendar being unavailable for rent. Rooms or areas of the property being locked off or reserved for private belongings. Rental pricing or advertising practices that make bookings unlikely. These factors can suggest the property is primarily a private holiday house rather than a genuine rental investment. What This Means for Property Owners The ATO is not banning deductions for holiday homes. However, it is drawing a clearer line between genuine rental investments and lifestyle assets. For taxpayers who expect rental deductions to offset the cost of owning a holiday home, the new guidance could significantly change the tax outcome. If you own a holiday property, or are considering purchasing one, it is worth reviewing how the property is structured, marketed and used. At GrowthMD, we regularly help medical professionals and practice owners navigate the tax implications of their investments. If you want to understand where your holiday property may sit under the ATO’s risk framework, our team can help you review the arrangement before the ATO does.

Efficiency and accuracy are key to running a successful medical practice, but heavy administrative workloads often distract staff from focusing on patient care. In a recent conversation with Kelly from GrowthMD, Melvin Chen, founder of Care GP , shared insights into how their innovative automation tools are solving these pain points for GP practices in Australia. How Care GP is Automating Document Chaos in GP Clinics What is Care GP and Samantha? Care GP is an AI-powered company dedicated solely to creating automation tools for GP clinics in Australia. Their flagship product, Samantha, tackles one of the most time-consuming and error-prone tasks in medical practice: document allocation. Historically, admin teams manually handled document scanning, faxing, and importing, reading individual files to allocate them correctly to patient records and practitioners. Samantha automates this entire process, saving time, minimising errors, and freeing up valuable staff hours. Meet Samantha

Strong bookkeeping is essential for running a profitable, well-managed medical practice. When your bookkeeping is clean and accurate, BAS and tax reporting become easier, cash flow is clearer, and practice owners can make confident decisions based on reliable numbers. Improve Your Medical Practice Bookkeeping Below are seven practical tips that form the foundation of effective medical practice bookkeeping. Don't Mix Business with Personal Clean bookkeeping starts with having bank accounts and cards set up in the name of the business. A well-run medical practice will usually have a clear structure: a revenue account for patient receipts and other practice income, an operating account for day-to-day expenses, and a separate savings or tax account for BAS, super, or future liabilities. Spending should be controlled through business-linked cards for key personnel. Even better, many practices now use spend management platforms such as Weel, which allow digital cards to be issued, limited, or switched off instantly as roles change. What matters most is consistency. Personal loans or personal expenses running through the practice quickly contaminate the books and make reporting unreliable. Reconcile Bank Accounts Daily For busy medical practices, daily bank reconciliation is best practice. Smaller practices should still reconcile several times per week. Frequent reconciliation keeps cash flow accurate in real time and allows errors or duplicate transactions to be picked up early, rather than becoming a problem at month-end or BAS time. It’s also important to periodically confirm that your Xero bank balance matches your actual bank statement. While bank feeds are generally reliable, they can occasionally fall out of sync due to timing issues or incorrect entries. Pro Tip: At the end of each month, running the Bank Reconciliation Report in Xero provides an extra layer of protection by highlighting unreconciled items or incorrectly entered transactions. Use a Chart of Accounts Designed for Medical Practices Medical practices are not standard businesses, and your bookkeeping structure should reflect this. A medical-specific chart of accounts clearly separates practice income sub-types, clearly identifies service and facility fees, separates payments to registrars and employee doctors from nurse and admin wages, and isolates key cost categories such as medical supplies, rent, software, and professional fees. When your chart of accounts is set up properly, your reports become genuinely useful management tools rather than just compliance documents. Track Doctor Payments and Service Fees Accurately Doctor service fee invoices and fee collections are one of the most sensitive and complex areas of medical practice bookkeeping. Whether your practice operates with contractor doctors, employed doctors, service entity arrangements, or a mix of all three, consistency is critical. Billings and service fees must be documented and calculated consistently every period and clearly reported. Many medical practices use tools like Cubiko Calculate to help calculate doctor service fees accurately and efficiently. Purpose-built tools significantly reduce errors, disputes, and reliance on error prone spreadsheets. Attach Receipts and Invoices to Every Transaction Clean bookkeeping is well-documented bookkeeping. Every transaction in Xero should ideally have a source document attached. Using tools such as Dext and Hubdoc make this much easier by allowing receipts and invoices to be captured digitally and fed directly into Xero. This approach speeds up BAS and tax preparation, reduces back-and-forth with your accountant, and creates a strong audit trail for verifying transaction or any future ATO enquires. Review Reports Monthly A monthly review is a critical control in medical practice bookkeeping. This review should include at least the Profit and Loss and the Balance Sheet. Particular attention should be paid to payable accounts such as wages payable, superannuation payable, PAYG withholding, and GST balances. Reviewing these accounts ensures payroll and super obligations are correctly recorded, liabilities aren’t understated, and the practice is genuinely meeting its compliance obligations. This step is often overlooked but is one of the most important for practice owners. Lock Periods After BAS Is Lodged Once your BAS is finalised, the period should be locked in Xero. Locking periods prevents accidental changes to reported figures and protects the integrity of your bookkeeping data. This is especially important when practice managers, admin staff, or external bookkeepers have access to the file. Why Medical Practice Bookkeeping Matters Clean medical practice bookkeeping isn’t about perfection, it’s about clarity, control, and confidence. When your bookkeeping is done properly, you trust your reports, understand true profitability, reduce compliance stress, and make better decisions for your practice. Need help keeping your books clean and under control? The GrowthMD bookkeeping team specialises in medical practices and understands the complexities of doctor payments, service fees, and healthcare compliance. As a Platinum Xero Partner, GrowthMD has deep expertise in setting up and managing Xero for medical practices, ensuring your bookkeeping is accurate, compliant, and genuinely useful, not just at BAS time, but all year round. If you’d like support with your medical practice bookkeeping, reach out to the GrowthMD team to see how we can help. Disclosure: Kelly Chard is a director of Cubiko Holdings Pty Ltd and Cubiko Calculate Pty Ltd. Cubiko Calculate is mentioned in this article as an example of a purpose-built tool used by some medical practices to assist with doctor service fee calculations. The inclusion of this tool does not constitute financial advice or a recommendation that it is suitable for every practice.

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. My next video in the series delves into spotting red flags in your medical practice. Financial and fraud risks every medical practice owner should know.

Is a restructure right for you? If you’ve owned a medical practice for several years, chances are the business is worth far more today than when you first started. Strong patient demand, reliable fee income, and years of hard work all add up. Yet for many owners, that value remains locked inside the practice and isn’t easily accessible. Unlocking the Hidden Value in Your Medical Practice At GrowthMD, one strategy we implement with established medical practice owners is a restructure designed to unlock value by transitioning the existing business into a new trading entity, typically a company. Done correctly, this approach can create financial freedom for owners today while positioning the practice for long-term success. How this strategy works In practice, the current business entity sells the medical practice to a newly formed entity (usually a company) at market value. An independent valuation is required to support the sale price. The new company typically borrows to fund the acquisition, with the sale proceeds flowing to the existing owners. This approach allows practice owners to unlock value they’ve already built without selling to a third party or giving up control of the medical practice. Increasing available cash One key benefit of this strategy is the release of built-up equity in the business. In many cases, owners choose to use the cash proceeds from the sale to pay off personal, non-deductible debt, such as home loans. Reducing this type of debt can significantly improve personal cash flow and mitigate long-term financial pressure outside the business. Tax-effective structure Companies are commonly used as a long-term operating structure for medical practice because they are straightforward to understand and operate. Company profits are taxed at the 25% company tax rate, and shareholders are generally only taxed when dividends are paid. This differs from trust structures, where owners can be taxed on income even when cash is retained in the business. As a result, companies can provide more precise alignment between tax outcomes and cash flow. Making succession easier This strategy is also a powerful tool for succession planning. By introducing acquisition debt at the company level, the practice can become more accessible for future owners. Incoming doctors or key staff may require less upfront capital and lower personal borrowings to buy into the business. Reducing these barriers to ownership can make partnership opportunities more achievable, supporting succession and, in turn, the continuity of care, leadership, and culture within the practice. Restructuring with no tax Selling the business, even internally, will usually trigger a Capital Gains Tax (CGT) event. However, where eligibility criteria are met, the small business CGT concessions will significantly reduce, and in many cases, eliminate CGT. Applying these concessions correctly requires careful assessment, documentation, and coordination; however, many of our medical practice clients have been eligible for these concessions and have paid nil to minimal tax on the sale of their business. Is this right for every practice? Not always. This strategy tends to suit established medical practices with genuine goodwill value, stable cash flow, and owners who meet CGT concession requirements. It also involves upfront costs and careful execution. For the right practice, however, it can be a highly effective way to unlock value, reduce personal non-deductible debt, and position the business for smooth succession and long-term success. How GrowthMD can help At GrowthMD, we don’t just talk about strategy; we implement it. We work closely with medical practice owners to assess whether this approach fits their business goals and long-term plans. We coordinate valuations, tax analysis, lending and legal referrals to ensure the strategy is commercially sound and implemented correctly. If you’re thinking about how to unlock the value in your medical practice or prepare for the next stage of ownership, a structured conversation can help clarify whether this strategy is right for you. *Note that this blog is for general information only and should not be relied upon as specific advice. Conducting a restructuring exercise in your business requires specific tax and legal advice.

This month in my Financials 101 series, let's talk about spotting red flags in your medical practice. Running a medical practice isn’t just about saving lives; it’s about keeping your business healthy too. And just like early detection is key in medicine, spotting financial red flags early can save your practice a lot of pain (and paperwork). Let’s take a moment to talk about what to watch out for, so you can address issues head-on, long before they snowball into a full-blown crisis. Financials 101: Spotting Red Flags Financial Stress: Symptoms to Look For Think of financial stress as your business’s way of waving a “help!” flag. Here are some of the more common signs to look out for. Profit Drops Without a Clear Diagnosis Profits can dip for obvious reasons—January holidays, public holidays in April, or when your star-billing doctors are off exploring Europe for two months (lucky them). But when profit takes a nosedive and you have no clear explanation? That’s when you need to dig deeper. Unexplained drops in profit are like a headache with no known cause: it might be stress, or it might be something more serious. Don’t ignore it. ATO Debt That’s Sneaking Up If you’ve always paid your BAS and super on time, and suddenly you’re struggling to meet those deadlines, it’s time to ask: Where is the cash going? Something has shifted. Consistently missing ATO payments isn’t just a warning sign, it’s a flashing red light on your dashboard. You need to plan for those bills like clockwork because falling behind on them can crank up your financial stress and make matters worse. Trouble Paying Bills If your payable accounts are piling up and you’re not able to keep up with supplier payments, it’s usually a sign that your cash flow has taken a hit. Don’t let this linger. Figure out where the bottleneck is and clear it sooner than later, because a snowball in accounts payable usually leads to an avalanche. Reliance on Incentives to Keep the Lights On If you’re holding out for quarterly incentives to fix cash flow issues, that’s a sign the service fees you’re collecting aren’t covering your daily expenses. Incentives should feel like a bonus, not a lifeline. It’s time to examine the way you’re allocating revenue and start giving your margins some TLC. Too Many Overdrafts and Payment Plans If overdrafts are more of a habit than an occasional fallback, or you’re using payment plans to cover regular expenses, there may be some deeper issues with your cost structure. Think of it like a pressure bandage: it can keep things together for now, but it’s not a long-term fix. (Pro tip: get help with those allocations. It makes all the difference.) Staff Costs Ballooning Beyond Healthy Limits Yes, staff turnover or training new hires can temporarily increase costs, but chronic, sky-high staff costs are a more serious issue. If your staff expenses consistently eat up too much of your provider billings, you’re setting yourself up for long-term financial stress. And while bringing in locums or contractors can help fill gaps, relying too heavily on those high-cost options can be unsustainable. Your Drawings Are Exceeding the Practice’s Profits While it’s absolutely fair to pay yourself for your hard work, there’s a limit. Regularly taking more out of the practice than what it earns in profit, unless you have prior savings or profit reserves, is a fast track to financial trouble. It’s the business equivalent of eating your seed corn. No Regular Financial Reporting or Reviews Picture this: you’re flying blind. You’re spending money, hoping you’re staying afloat, and waiting until year-end to visit your accountant, only to hear them say, "You’re in a bad spot, Bob/Sally." That’s what happens when you don’t review your numbers regularly. Frequent financial check-ins are like regular health checkups; they keep you out of trouble. Fraud-Related Red Flags: Be On the Lookout Financial stress is one thing, but fraud is a whole other monster, a preventable one, with the right tools and vigilance. Here are the red flags to keep in mind: Spikes in Expenses with No Clear Reason If a cost, say medical supplies, suddenly doubles, and there’s no plausible explanation, it’s time to investigate. Check invoices, suppliers, and payments. Fraudsters thrive in confusion, so eliminate it by staying on top of the details. One Person, Too Much Power When one staff member controls billing, payroll, and banking, that’s a recipe for trouble. In accounting, this is Fraud 101: a lack of separation of duties. Separate those responsibilities, stat. Frequent Write-Offs or Refunds Write-offs and refunds aren’t unusual, but if they start popping up more than usual, dig deeper. Audit them with a tool like Cubiko, or use your practice management software to review and verify that they’re legitimate. Neglecting Bank Reconciliation Reconciliations are your first line of defense against missing funds. If no one’s keeping up with it, you’re creating a blind spot where fraud can fester. Regularly reconciling your bank transactions should be non-negotiable. Suspicious Supplier Invoices Fraudulent invoices can look real. People have been known to create fake ones, run them through the accounting system, and then pocket the payments. Validate your supplier details to confirm legitimacy and put safeguards in place. Debit Balances in Patient Clearing Accounts If your patient holding account has a debit balance, it means too much money is being paid out (or worse, cash isn’t being deposited where it belongs). This can be a major fraud risk if not monitored. Lifestyle Changes in Key Financial Staff If someone with access to the financials suddenly steps out of an economy-class life and into business-class vacations and designer handbags, that could hint at something fishy. Don’t ignore your gut; it’s rarely wrong. How a Great Accountant Can Help You A proactive accountant is like your business’s equivalent of a great diagnostician. Yes, they’ll handle your tax return, but a good one will do so much more: Profit Analysis: They’ll help you understand why your profit is up or down, and how to adjust. Benchmarking & Targets: Your accountant should measure key metrics (e.g., EBITDA) and help set achievable goals. Risk Identification: Whether it’s creeping staff costs or rising liabilities, they’ll spot trouble before it snowballs. Process Improvement: They’ll guide you toward smarter systems and workflows so you can stay financially efficient. If your accountant isn’t having these conversations with you, maybe it’s time for one who will. Key Takeaways Be Financially Proactive: Frequent check-ins with your financials make a big difference. Make Red Flags Your Priority: Whether it’s a cash flow hiccup or a fraud risk, acting fast can save you headaches. Seek Expert Help: Accounting might as well be its own language, but trust us, we speak it fluently (and we’re happy to translate!). At GrowthMD, we get it; your time is razor-thin, your to-do list is endless, and your priorities revolve around patient care. That’s exactly why we’re here: to help you spot the problems, fix them quickly, and get your practice thriving again.

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.