HST treated as one bucket
Either every ITC gets claimed (audit exposure) or none do (overpaying every quarter). The right answer is an apportioned share, documented and repeatable.
Apportionment done once, applied monthly
Physio · chiro · RMT · optometry · multi-disciplinary
Clinic books that pass the exempt-vs-taxable test.
Your treatments are mostly HST-exempt. Your product wall isn't. Custom orthotics and prescription lenses are zero-rated, cosmetic add-ons are taxable, and your input tax credits have to be apportioned across that whole map. Add practitioner splits and insurer receivables, and clinic books are harder than they look. They're what we do.
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Where clinic books go wrong
Three quiet leaks in most clinic files.
Each one either hands money to the CRA, hides money you're owed, or builds a dispute with your own practitioners.
Insurer money untracked
Direct billing means revenue now, cash later. Without a receivable per insurer, partial payments and clawbacks quietly disappear into "close enough."
A/R by payer, chased when it ages
Split math nobody trusts
Practitioner percentages computed off different bases in different months. The clinic eats the difference, or the practitioner does, and either way trust erodes.
Same base, same rules, every month
The revenue map
A multi-disciplinary month, mapped.
Every stream has its own HST personality: exempt treatments (no HST charged, no credits), zero-rated devices like custom orthotics (0% charged, credits kept), and taxable products and cosmetic work (13% charged, credits kept).
Since June 2024, registered massage therapy is exempt too, which changed the math for a lot of Toronto clinics. We keep the map current and your credits apportioned against it.
Read the clinic HST guide →June · revenue by HST treatment
Exempt · physio, chiro & RMT treatments$52,300
Zero-rated · custom orthotics, Rx lenses$7,900
Taxable · products, tools, cosmetic add-ons$5,560
HST collected on the taxable slice$722.80
ITCs claimable · taxable + zero-rated share onlyapportioned
The trap: rent, software and supplies mostly serve exempt care, so their HST is mostly unclaimable. Claim it all and you're building a reassessment.
What we handle
The full clinic back office.
Your practice management system stays the clinical record; we make the money agree with it.
Exempt vs taxable mapping
Treatments, devices and retail classified once in the chart of accounts, so HST treatment is automatic and the $30,000 registration threshold is watched.
ITC apportionment
A documented method for claiming the claimable share of input tax credits, applied consistently, with the worksheet ready for the day the CRA asks.
Practitioner splits
Percentages computed on the same base every month, discounts and clawbacks handled consistently, one clear statement per practitioner.
Direct-billing receivables
A real A/R by insurer: what was billed, what was paid, what was clawed back and what's aging, so owed money stops evaporating.
Payroll & T4s
Admin and employed practitioners on proper payroll: CPP, EI, withholding, remittances on schedule and T4s at year-end. Contractor records kept clean too.
Monthly clinic reporting
Revenue by practitioner and service line, payroll share, A/R aging and drift flags, delivered days after month-end in plain language.
What it costs
Most Toronto clinics land between $400 and $900 per month, flat, depending on practitioner count and volume. QuickBooks, reconciliation, HST apportionment and monthly reporting included; payroll adds $150.
Clinic FAQ
Asked by every clinic owner we meet.
Services from regulated practitioners, physiotherapists, chiropractors, optometrists, are generally exempt, and registered massage therapy joined the exempt list in June 2024. But retail products, cosmetic work and some assessments are taxable, and devices like custom orthotics and prescription lenses are zero-rated. The mix decides your input tax credits.
Most clinics pay a percentage of collections. The books must compute it on the same base, the same way, every month: consistent treatment of discounts, insurer adjustments and no-shows, with a clear statement per practitioner. We automate the calculation and keep the trail.
Yes. Direct billing means revenue at treatment, cash later, with partial payments and clawbacks in between. We keep a real receivable per insurer so you know what you're owed, what aged out and what needs chasing.
Most clinics land between $400 and $900 per month flat, depending on practitioners, volume and payroll. QuickBooks Online, reconciliation, HST apportionment and monthly reporting are included.
Keep reading
Related reading & services.
Thirty minutes on your HST and splits.
Findings in writing, free.
We'll review your exempt-vs-taxable treatment, ITC claims and practitioner pay setup, and hand you the findings whether or not we work together.
On a call or in person · no passwords · findings are yours either way