Running a National Disability Insurance Scheme (NDIS) business in Australia presents a unique set of opportunities and challenges. The NDIS was designed to provide support for Australians with disability, their families, and carers, and businesses operating within this space play a crucial role in delivering these essential services. As an accountant, my role is to guide NDIS service providers through the financial complexities of operating within the scheme, ensuring compliance, sustainability, and success. Here’s a foundational guide on running an NDIS business and key points to be cautious of:
Understanding the NDIS Framework
The first step in running an NDIS business is to have a thorough understanding of the NDIS framework. This includes knowing the types of supports funded by the NDIS, the eligibility criteria for participants, and how the funding process works. Familiarise yourself with the NDIS Price Guide and Support Catalogue, as these documents outline the rules, including price limits, for each support category.
1. Registration and Compliance
- Registration and Compliance: NDIS providers can choose to be registered or unregistered, but being a registered provider opens more opportunities, as you can work with all NDIS participants. Registration involves meeting specific quality and safeguard requirements and undergoing an audit process. It’s crucial to maintain compliance with these standards to ensure the safety and quality of services provided to NDIS participants.
2. Financial Management
- Financial Management: Effective financial management is vital for the sustainability of any NDIS business. This includes accurate billing and invoicing according to NDIS price guides, managing cash flow, and keeping detailed records of services provided. Providers must be diligent in tracking their costs and revenues to ensure they are operating within the budget while still delivering high-quality services.
3. Service Agreements and Plan Management
- Service Agreements and Plan Management: Developing clear service agreements with participants is essential. These agreements should detail the services to be provided, the costs, and the terms and conditions of the service. Understanding the different ways participants manage their funds (NDIS-managed, plan-managed, or self-managed) is also crucial, as it affects billing and payment processes.
4. Risk Management
- Risk Management: Identify and manage risks associated with running an NDIS business. This includes ensuring compliance with all legal and regulatory requirements, managing financial risks, and implementing strategies to mitigate risks related to service delivery and participant satisfaction.
5. Quality and Safeguarding
- Quality and Safeguarding: The NDIS Commission sets out a range of quality and safeguarding requirements to protect participants. Providers must understand and implement these requirements, including incident management, complaints management, and worker screening processes. Failing to adhere to these standards can result in penalties and loss of registration.
6. What to Be Careful Of
- Over-Servicing or Under-Servicing: Ensure that the services provided are in line with the participant’s NDIS plan and goals. Both over-servicing and under-servicing can lead to issues with participants and the NDIS Commission.
- Compliance: Stay updated on changes in NDIS policies, price guides, and compliance requirements. Non-compliance can result in financial penalties and reputational damage.
- Financial Viability: Keep a close eye on the financial health of your NDIS business. Mismanagement of funds can lead to cash flow problems, affecting your ability to provide services.
- Participant Satisfaction: Participant feedback is crucial for continuous improvement. Poor service can lead to complaints, affecting your reputation and registration status.
