How a professional services accountant usually helps
Engagement starts with a short diagnostic: structure, software, billing model, current reports, open deadlines and any backlog. From there, we prioritise three workstreams: immediate triage, process design and ongoing review.
Immediate triage handles urgent matters such as overdue BAS, payroll issues, ATO letters, unreconciled bank feeds or late debtors. Process design builds clean workflows for time capture, WIP and invoicing, purchase approvals and month‑end. Ongoing review gives you stable financials, consistent KPIs and fewer surprises.
- Time and WIP: align timesheets, approvals and invoicing with Xero, MYOB or QuickBooks plus job tools (e.g. Xero Projects, WorkflowMax by BlueRock, Harvest).
- Retainers and fixed fees: track scope, cap write‑offs early and recognise revenue sensibly.
- Cash flow: reduce lockup (WIP + AR) with billing rhythm, deposits and debtor follow‑up.
- Compliance: BAS, PAYG, STP 2, super and year‑end tax with minimal rework.
Australian context to keep in view
- GST on disbursements vs on‑charges: treat reimbursements and re‑billed costs correctly to avoid BAS errors.
- STP Phase 2 and super: keep payroll data clean for awards, allowances and super guarantee timing.
- Personal Services Income (PSI): solo consultants need to consider PSI tests and deductions.
- Law firm trust accounting: if applicable, maintain segregation, reconciliations and audit‑ready records.
- Project and retainer reporting: align management reports with how you sell and deliver work.
Need help with a specific compliance item? See BAS agent services, tax accountant or payroll services.
What to compare before you commit
Scope
Ensure the proposal covers time capture, WIP, invoicing, BAS and tax lodgements, payroll, and monthly reporting—plus any cleanup or migration work.
Software fit
Look for proven workflows in Xero, MYOB or QuickBooks with job/time tools such as Xero Projects, WorkflowMax by BlueRock, Harvest, ApprovalMax and Dext.
Turnaround and communication
Ask about month‑end timelines, who to contact for urgent matters, and how priorities are handled during peak periods.
Commercial fit
Compare pricing method, meeting rhythm, KPI pack depth (utilisation, realisation, WIP and DSO) and whether you want compliance only or advisory support.
Key metrics professional firms should track
- Utilisation (billable % of capacity) and realisation/recovery (billed vs recorded time).
- Average hourly rate vs standard rate and write‑offs/write‑ups.
- WIP days and debtor days (DSO) to monitor lockup and cash conversion.
- Revenue and gross margin per person, by role or service line.
- Retainer health: scope adherence, time burn vs fee and renewal risk.
We can embed these KPIs in monthly packs or dashboards connected to your accounting and time systems.
Recommended software stack
The right stack reduces admin and improves reporting accuracy. Common combinations for Australian professional services firms include:
- Core ledger: Xero, MYOB Business/AccountRight or QuickBooks Online.
- Time and jobs: Xero Projects, WorkflowMax by BlueRock, Harvest or alternative PSA tools.
- Data capture and approvals: Dext or Hubdoc with ApprovalMax.
- Proposals and billing: Ignition for engagement letters, deposits and recurring invoices.
- Payroll: Xero Payroll or Employment Hero (KeyPay) for STP 2 and award compliance.
- Cash flow: Float or Spotlight for forward visibility.
Already using something else? A professional services accountant will map your workflow first, then recommend minimal‑change improvements.
Who we help
We support owners, principals and finance leads in:
- Law firms and legal practices (including trust account processes).
- Architecture and engineering practices.
- IT services, MSPs and software consultancies.
- Marketing, PR and creative agencies.
- Management consultants and recruitment firms.
If your business sells time and expertise, a professional services accountant can lift utilisation, reduce lockup and improve cash flow.
Best next steps
Clarify your primary outcome: faster month‑end, lower lockup, cleaner payroll/STP, fewer BAS errors, or better pricing and recovery. Shortlist providers who can explain exactly how they will deliver that result in your stack.
Use these pages if you already know the stream you need:
Frequently asked questions
What does a professional services accountant actually do?
A professional services accountant sets up clean bookkeeping and integrated time/WIP workflows, recognises revenue for retainers and fixed‑fee projects, manages GST on disbursements, runs payroll and super accurately, prepares BAS and tax, and delivers KPI dashboards for utilisation, realisation, WIP days and debtor days.
Which professional services firms benefit most?
Law firms, architecture and engineering practices, IT and MSPs, marketing and creative agencies, consultancies and recruiters. The shared challenge is converting time and projects into predictable cash with minimal write‑offs.
How should WIP and retainers be handled in Xero or MYOB?
Capture time in a connected job tool (e.g. Xero Projects, WorkflowMax by BlueRock, Harvest), approve promptly, invoice to Xero or MYOB, and use reports to monitor write‑offs. For retainers, track scope and time burn monthly and recognise revenue to reflect delivery—not just invoicing.
What tax and BAS issues are common for professional services?
Frequent topics include GST on disbursements vs on‑charges, PAYG instalments, Single Touch Payroll Phase 2, super guarantee, motor vehicle and home office deductions, PSI rules for consultants and, for law firms, trust account compliance.
Which KPIs should we track monthly?
Utilisation (billable %), realisation/recovery, average hourly rate vs standard rate, write‑offs/write‑ups, WIP days, debtor days (DSO), revenue and margin per person, and total lockup (WIP + AR). These reveal pricing discipline, capacity and cash conversion.
How do I choose the right professional services accountant?
Look for time‑billing and WIP experience, clear workflows in your software, dependable month‑end timelines and example KPI packs. Confirm knowledge of GST on disbursements, STP 2, PSI and trust accounting where relevant, then compare fees and communication rhythm.