Do consultants need to register for GST in Australia?

You must register once your GST turnover reaches or is likely to reach $75,000 in a 12‑month period. Many consultants register earlier to appear established and to claim input tax credits. Exports of services may be GST‑free if used outside Australia; get advice before deciding.

How should I treat retainers, deposits and prepaid invoices?

Retainers and deposits are often unearned revenue until services are delivered. Good bookkeeping recognises revenue over time (and tracks WIP), aligns invoices to delivery milestones, and ensures GST timing is correct per your tax periods and method (cash or accruals).

What reports matter most for consultants?

Useful packs include aged receivables/payables, cash flow, job/project profitability, billable vs non‑billable time, utilisation %, average hourly realisation, and BAS summaries. These help you price accurately and manage capacity.

What is PSI and why should consultants care?

Personal Services Income (PSI) rules may apply when income is mainly a reward for your personal efforts. If PSI applies, certain deductions can be limited and how you pay yourself may change. A bookkeeper/accountant can apply the tests and set up records to support your position.

How are expenses and reimbursements handled?

Use clear categories for travel, software, subcontractors, and client‑reimbursable costs. Where you on‑charge expenses, track them to the job and decide whether to treat as disbursements or income + expense recovery for clean GST and margin reporting.

Which software stack suits a consulting business?

Popular options include Xero, MYOB or QuickBooks Online for the ledger; Dext or Hubdoc for capture; project/time tools like Harvest, WorkflowMax/Alternatives, or Xero Projects; and payment add‑ons like Stripe. Choose tools that integrate cleanly with your invoicing and job tracking.

Can you help if my books and BAS are overdue?

Yes. A typical catch‑up streamlines bank feeds, reconciles in date order, separates private vs business costs, corrects GST coding and prepares outstanding BAS. Clear sequencing and regular check‑ins keep momentum until you’re current.

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Q: What does bookkeeping for consultants typically include?

Core tasks usually cover bank/credit card reconciliations, accounts receivable and invoicing (including retainers and milestones), accounts payable and expense management, payroll and Super processing, GST coding and BAS preparation, project/WIP tracking, and month-end reporting for utilisation and profitability.

How consultant bookkeeping usually works

An effective bookkeeping for consultants workflow starts with a short discovery to understand your structure (sole trader, company, trust), invoicing style (retainers, milestones, hourly), software stack, and any overdue BAS or payroll. A quick health check then highlights gaps in bank feeds, GST coding, unpaid invoices, and expense capture.

Delivery tends to break into three streams:

Catch‑up and clean‑up – reconcile historical periods, fix coding, separate private costs, prepare outstanding BAS and clarify open payables/receivables.
Process design – set weekly rituals: receipt capture, timesheets, invoice cycle, approval rules, payroll/STP, and month‑end checklists with due dates.
Ongoing bookkeeping – reconciliations, debtor follow‑up, supplier payments, payroll and Super, monthly reports, and quarterly BAS.

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Australian context to keep in view

GST registration is required at $75k turnover; exports of services can be GST‑free if used outside Australia. Correct coding matters for BAS.
Retainers, deposits and prepayments often need deferred revenue/WIP tracking so profit lines up with delivery.
STP Phase 2, Super Guarantee and PAYG Withholding must be lodged on time. Payroll for contractors can trigger employee vs contractor questions.
PSI rules may limit deductions and affect how profits are drawn; test early with your accountant or consultant tax specialist.
Software subscriptions, travel, professional development and subcontractors are common categories; set clear on‑charge rules to protect margin.

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What to compare before you commit

Scope

Confirm the scope covers reconciliations, AR/AP, payroll and Super, BAS, and project/WIP reporting required for consultants. Include any catch‑up, cleanup or migration.

Software fit

Ensure fluency with your stack (e.g., Xero, MYOB, QuickBooks; Dext/Hubdoc; Harvest/Xero Projects) and that the provider explains workflow, not just software names.

Turnaround and communication

Agree on weekly cycles, month‑end dates, response times and escalation paths during peak periods (BAS, EOFY, payroll changes).

Commercial fit

Choose fixed fee vs hourly, set reporting depth (utilisation, job margins), and clarify if you want compliance only or broader advisory/forecasting support.

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Recommended setup for consultants

Chart of accounts tuned for billable vs non‑billable time, subcontractors, software, travel, training and on‑charged expenses.
AR process with retainers and milestone invoices, automatic reminders, and card/PayNow options to speed collection.
Expense capture using Dext/Hubdoc, clear approval rules and project tagging for on‑charges.
Time and job tracking to connect timesheets, budgets and invoices so utilisation and realisation are reliable.
Monthly pack covering P&L, cash flow, aged AR/AP, GST summary, utilisation %, and project profitability.

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Pricing and engagement options

Consultant bookkeeping can run on fixed monthly packages (with agreed transaction limits and reporting) or hourly arrangements for variable workloads. Packages often include reconciliations, AR/AP support, payroll, monthly reports and quarterly BAS. Hourly or project pricing suits one‑off catch‑ups, migrations or complex WIP/revenue setups.

If you also need payroll or tax planning, consider a coordinated approach with consultant payroll and consultant tax support so lodgements, budgets and advice stay aligned.

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Best next steps

Write down the outcome you want: current BAS, faster invoicing and collections, a clean migration to Xero/MYOB/QBO, reliable payroll, or a monthly pack that shows utilisation and project margins. Shortlist providers against that outcome, not just titles.

Use the related pages below to jump to bookkeeping, payroll, BAS or tax help, then make contact with a clear brief.

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Frequently asked questions

What does bookkeeping for consultants typically include?

Bank and card reconciliations, invoicing and receivables (retainers and milestones), payables and expense capture, payroll and Super, GST coding and BAS, WIP/project tracking and monthly reporting for utilisation and profitability.

Do consultants need to register for GST?

Registration is required at $75k turnover. Many register earlier to claim credits. Exports of services can be GST‑free if used overseas; confirm the details for your case.

How do I treat retainers and prepayments?

Often as unearned revenue until work is delivered. Good bookkeeping matches delivery, WIP and invoice timing so revenue and GST are recorded correctly.

Which reports should I review monthly?

P&L and cash flow, aged AR/AP, GST summary ahead of BAS, utilisation %, average realisation rate and project/job profitability.

What is PSI and could it apply to me?

Personal Services Income may apply if income is mainly for your personal efforts. It can affect deductions and how you draw profits. Check the tests with your accountant.

Can you help with overdue books and BAS?

Yes. We sequence catch‑ups, fix coding, reconcile by period and prepare outstanding BAS so you’re current and confident.

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Bookkeeping for consultants in Australia