Bookkeeping for health and wellness practices in BC
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Payments from patients and insurers, services that may or may not carry GST, and practitioners on payroll or on contract. We keep it straight every month.
Short answer: a BC clinic or wellness practice needs its patient, insurer and direct-billing payments matched to invoices, GST treated according to what it supplies, and its practitioners correctly set up as employees or contractors. Whether a health service is GST-exempt depends on the profession and the service under the CRA’s rules, and products sold alongside it can be taxable. Orbis Accounting Ltd. keeps the books monthly, files GST and PST where they apply, runs payroll and prepares the year-end return.
What is hard in a practice’s books?
- Payments from several directions: patients, insurers through direct billing, and card processors, each settling on its own schedule.
- GST that depends on what is supplied. Some health services are exempt and some are not, and a business that makes only exempt supplies generally cannot claim input tax credits.
- Products sold over the counter, which can carry GST and PST even when the treatment does not.
- Practitioners who are paid as contractors but may in fact be employees.
What we do each month for a practice
- Reconcile patient, insurer and card payments to invoices and to the bank.
- Keep exempt services and taxable products apart, and file GST and PST where they apply.
- Run payroll for staff and track payments to contract practitioners.
- Give you a monthly profit and loss, by practitioner where the data allows.
Who this fits, and who it does not
It fits owner-run clinics and wellness practices in BC, such as massage therapy, physiotherapy, chiropractic, counselling and similar. Which of your services are GST-exempt turns on the CRA’s rules for your profession. We check those rules with you before your first return, and where a case is unclear, a CRA ruling or a tax professional settles it.
Do health practitioners charge GST?
It depends on the profession and the service. Some health services are GST-exempt under the CRA’s rules and some are not, and products sold in the clinic can be taxable. We check the rules for your practice with you before filing.
Are practitioners in my clinic employees or contractors?
It depends on the working relationship, not on the contract’s label. The employee or contractor guide explains the factors.
Can you reconcile direct billing to insurers?
Yes. Insurer payments are matched to the invoices they settle, like any other receivable.
Do I need to register for PST?
If you sell taxable goods, such as products over the counter, you may. The PST registration page explains when.
GST registration and input tax credits →
Tell us what your business does
Tell us your trade, roughly how many transactions a month and what you need filed, and a written plan and a fixed monthly price follow within one business day.
info@orbisaccounting.ca