Managing NDIS invoicing efficiently is crucial for providers who want to maintain healthy cash flow and avoid delays in payments. Whether you are a sole trader or managing a team, ensuring your invoices are correct and compliant can make all the difference in getting paid quickly. In this guide, we’ll walk you through best practices for NDIS invoicing, common reasons for payment delays, and how to streamline the process. Plus, at the end of this post, you can download our NDIS Invoicing Checklist to make sure you never miss a step.
Best Practices for NDIS Invoicing
Following a structured approach to NDIS invoicing can significantly reduce delays and disputes. Here are some best practices:
- Ensure Invoice Accuracy – The most common reason for payment delays is incorrect invoices. Make sure your invoice includes all required details, such as the participant’s name, NDIS number, service details, rates, and GST status.
- Use the Correct Line Items – The NDIS Price Guide has specific line items for each service. Using incorrect codes or descriptions can lead to rejections or payment holds.
- Set Clear Payment Terms – Clearly state your payment terms (e.g., 7 days, 14 days) to ensure participants or plan managers know when payment is due.
- Send Invoices Promptly – The faster you send an invoice, the sooner you get paid. Sending invoices immediately after a service has been delivered improves cash flow.
Common Reasons for Payment Delays
Despite best efforts, NDIS invoicing payments can sometimes be delayed. Here are some common reasons:
- Missing Information – If key details (such as NDIS number, provider details, or service period) are missing, payments can be held up.
- Incorrect Service Codes – Not matching your service codes to the NDIS Price Guide can lead to rejection by plan managers or the NDIA.
- Errors in Participant Funding – If the participant has insufficient funds in their budget, payments may be delayed or declined.
- Manual Processing Delays – Some plan managers process payments manually, leading to slower turnaround times.
How to Streamline Your NDIS Invoicing Process
To improve efficiency and reduce payment delays, consider these strategies:
1. Use NDIS Invoicing Software
Investing in NDIS invoicing software helps automate invoice generation, ensuring compliance with NDIS guidelines. Many tools integrate with accounting software like Xero or MYOB, making reconciliation easier.
2. Invoice to the Right Party
NDIS invoices can be paid by different parties, including:
- NDIA (Agency-Managed) – Submit invoices directly via the NDIS MyPlace Portal.
- Plan Managers – Send invoices to the participant’s plan manager (ensure you have the correct email/contact details).
- Self-Managed Participants – Send invoices directly to participants and confirm their preferred payment method.
3. Follow Up on Overdue Invoices
If an invoice is overdue, follow up with a polite email or phone call. Keeping track of outstanding invoices and sending reminders ensures that payments don’t fall through the cracks.
To help you streamline your process and get paid faster, we’ve created an easy-to-use NDIS Invoicing Checklist. This checklist covers all essential steps, from invoice accuracy to follow-ups, ensuring you never miss a critical detail.
Download your free checklist now and start improving your invoicing process today!
