Does your tax agent understand your front end solution? Nookal / Mind Body / HealthKit / Cliniko and Xero

Over the last few months we have had a lot of interaction with Allied Health businesses.  We have worked with physiotherapists, remedial therapists, chiropractors and psychologists.  We have done a deep dive to better understand the sync of data between Nookal, Mind Body, Health Kit, Cliniko and Xero.  All of these businesses came to see us to get help with integrating their front end solution with Xero.

All of the accountants they had sought help from previously were happy to help them with Xero, but were not interested in better understanding the sync with the front end solution.  The most common bookkeeping system devised was to record all revenue related bank deposits to a clearing account, and code all synced data to the same clearing account, and cross fingers and toes that the two sets of data matched at month end.

And if they don’t that is what the good old manual journal entry is for.

Here is the problem – what if HiCaps / Health Fund / Medicare / Agency fails to make the payment you expect?  Have you created a system of internal controls so this missed deposit is detected?  If your accountant recommends a bookkeeping system where there is no expectation booked from the front end system and relies on funds deposited as the single source of truth, then there is no way to identify missed revenue.

Developing a work flow with these front end systems to get the Xero sync working is not straight forward.  Often we are dealing with two sets of data that are grouped differently, are subject to timing differences, cash being retained prior to bank deposits, and payment providers depositing net of fees.  Workarounds can be developed for all of these situations and sometimes these are manual, not automated.

CloudCounting prides itself on being different from the rest – we take the time to look at your front end solution to understand how the data is flowing, and how we can best configure the sync to get as many green matches as possible.

If your accountant is still using clearing accounts – give us a call on 04 26 625 683 to see how we can get your front end solution working with Xero.  We work with clients all over Australia.