Accounting for Health & Wellness Clinics in Singapore 2025

Introduction

The health and wellness industry in Singapore is thriving, with an increasing demand for aesthetic clinics, physiotherapy centres, chiropractic services, traditional Chinese medicine (TCM), massage therapy, and wellness spas. These businesses deal with a combination of consultation fees, treatment packages, product sales, and insurance claims, making financial management a crucial part of their operations.

With high operating costs, strict compliance regulations, and tax obligations, health & wellness clinics need to implement effective accounting practices to ensure profitability and sustainability.

This article explores the key accounting considerations for health & wellness clinics in Singapore in 2025, including bookkeeping, tax compliance, payroll management, inventory control, and financial planning.

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1. Understanding Revenue and Cost Structures in Health & Wellness Clinics

Unlike traditional service businesses, health & wellness clinics operate with a mix of consultation fees, treatment sales, and product revenue, requiring careful financial tracking.

Revenue Sources

• Consultation Fees – Charges for doctor, physiotherapist, chiropractor, or TCM consultations.
• Treatment & Therapy Fees – Revenue from services like acupuncture, physiotherapy, massage therapy, and wellness treatments.
• Aesthetic & Cosmetic Procedures – Fees from Botox, fillers, laser treatments, and skincare procedures.
• Membership & Subscription Packages – Recurring revenue from wellness plans, physiotherapy packages, and preventive health programs.
• Health Supplements & Product Sales – Income from selling skincare, supplements, essential oils, and wellness equipment.
• Corporate Wellness Programs – B2B revenue from health screenings, corporate wellness workshops, and workplace massage therapy.

Key Cost Components

• Medical Equipment & Supplies – Purchase of therapy devices, massage chairs, laser machines, and acupuncture needles.
• Doctor & Therapist Salaries – Wages for licensed professionals and clinic assistants.
• Rental & Utilities – Leasing prime clinic locations in malls, hospitals, or office buildings.
• Product & Inventory Costs – Stocking wellness products, supplements, and skincare items.
• Marketing & Branding – Costs for digital marketing, social media ads, and influencer promotions.
• Licensing & Compliance Costs – Registration with MOH (Ministry of Health), medical licensing fees, and insurance costs.

By tracking these revenue streams and expenses accurately, health & wellness clinics can optimize financial performance and sustain growth.

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2. Importance of Proper Bookkeeping for Health & Wellness Clinics

Accurate bookkeeping is crucial for tracking daily transactions, managing patient payments, and ensuring compliance with tax regulations.

Daily & Weekly Record-Keeping

• Record patient invoices and consultation fees.
• Track insurance claims and payments from corporate wellness programs.
• Monitor inventory levels for wellness products and medical supplies.

Managing Accounts Payable & Receivable

• Invoice patients promptly for treatment and follow-up visits.
• Track outstanding payments from insurance claims and corporate clients.
• Manage supplier payments for clinic equipment, supplements, and operational costs.

Using Accounting Software for Automation

Many clinics use Xero, QuickBooks, or MYOB to automate bookkeeping, track patient billing, and generate financial reports.

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3. GST and Tax Compliance for Health & Wellness Clinics in Singapore

GST for Health & Wellness Services

• Clinics earning over SGD 1 million annually must register for Goods and Services Tax (GST).
• GST-registered clinics must charge 9% GST (effective 2024) on aesthetic treatments, wellness services, and product sales.
• Medical and healthcare services provided by licensed professionals (e.g., doctors, physiotherapists, TCM practitioners) are GST-exempt.
• Businesses must file quarterly GST returns and maintain detailed records of GST-exempt and taxable services.

Corporate Tax Considerations

• Singapore’s corporate tax rate is 17%, with Start-Up Tax Exemption (SUTE) benefits for new clinics.
• Common tax deductions include doctor salaries, rental, medical equipment purchases, and marketing expenses.
• Clinics that invest in healthcare technology and digital transformation may qualify for government grants and tax rebates.

Proper tax planning and GST compliance help clinics reduce liabilities and improve profitability.

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4. Managing Payroll and Staff Compensation

Health & wellness clinics employ a mix of full-time doctors, part-time therapists, receptionists, and freelance specialists, making payroll management complex.

Payroll for Employees

• Employers must contribute to CPF (Central Provident Fund) for Singaporean and PR employees.
• Foreign doctors, therapists, and wellness practitioners require valid Employment Passes (EP) or S Passes, and businesses must comply with Ministry of Manpower (MOM) regulations.

Managing Freelancer & Commission-Based Payments

• Many clinics hire part-time therapists, visiting consultants, and wellness coaches.
• Payments must be properly documented, and clinics should issue Form IR8A for tax reporting.
• Commission-based staff should have clear payment structures based on service sales.

Automating Payroll Processing

Payroll software like Talenox, Payboy, or HReasily helps clinics automate salary processing, CPF contributions, and tax filings.

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5. Financial Planning and Budgeting for Clinics

A strong financial plan ensures profitability and business sustainability.

Cash Flow Forecasting

• Maintain a cash reserve for at least 6 months to cover staff salaries, rent, and inventory.
• Plan for seasonal revenue fluctuations, such as increased wellness program sign-ups in January (New Year’s resolutions).

Break-Even Analysis

• Calculate the break-even point per consultation and treatment package to ensure sustainability.
• Monitor profit margins on product sales and treatment revenue.

Financial Reporting for Decision-Making

• Monthly Profit & Loss (P&L) statements help clinics track revenue performance and operational expenses.
• Regular financial audits ensure compliance and highlight cost-saving opportunities.

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6. Common Accounting Mistakes to Avoid in Health & Wellness Clinics

1. Poor Patient Billing & Payment Tracking

• Untracked consultation fees and treatment payments can cause financial losses.

2. Not Allocating GST & Tax Reserves

• Clinics must segregate GST-exempt and taxable services to avoid compliance issues.

3. Inefficient Inventory Management

• Overstocking wellness products and supplements can lead to wastage and losses.

4. Mismanaging Staff & Therapist Payroll

• Lack of clear commission structures for part-time specialists can create disputes and financial inconsistencies.

Avoiding these mistakes helps clinics maintain financial stability and business efficiency.

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7. Leveraging Accounting Software and Automation

Best Accounting Solutions for Health & Wellness Clinics

• Xero & QuickBooks – For automating bookkeeping, patient invoicing, and tax compliance.
• Clinic Management Software (Medisys, Plato) – For tracking appointments, payments, and insurance claims.
• Google Sheets & Financial Dashboards – For monitoring revenue trends and operational expenses.

Automation enhances financial accuracy, efficiency, and scalability.

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8. Why Engage a Professional Accountant for Health & Wellness Clinics?

A professional accountant can help health & wellness clinics optimize tax planning, manage cash flow, and ensure compliance with Singapore’s financial regulations.

Key Benefits of Hiring an Accountant:

• Tax Planning & GST Compliance – Ensures accurate filings and tax deductions.
• Revenue & Expense Optimization – Helps track treatment profitability and inventory control.
• Financial Forecasting & Expansion Planning – Supports clinic growth strategies and investment planning.

Hiring an accountant allows clinics to focus on patient care while maintaining financial stability.

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Conclusion

Accounting for health & wellness clinics in Singapore in 2025 requires effective financial management, tax compliance, and strategic budgeting.

By leveraging accounting software, cost control strategies, and expert financial planning, clinics can increase profitability and expand their services.