How accounting for consultants usually works
A good “for consultants” process starts with a review of structure (sole trader, company, trust), software (Xero, MYOB, QuickBooks), billing method (time, fixed-fee, retainers), and compliance status (GST, BAS, PAYG, super, PSI position). From there, work typically splits into three layers:
- Immediate triage: Lodge overdue BAS, fix payroll/super, clean chart of accounts, correct GST coding, and stabilise cash flow.
- Process design: Implement time tracking, project/WIP, retainers, expense recharges, approvals, and monthly close routines.
- Ongoing review: Monthly/quarterly reporting, KPI packs (utilisation, WIP, AR days), tax planning, PSI checks and advisory.
Services tailored for consultants
BAS and GST
Registration checks, correct GST treatment on retainers and disbursements, fuel/travel and overseas services, and error-free lodgements. BAS agent services
PSI and structure
Assess PSI tests, optimise between sole trader vs company, director salary/dividends, and income splitting where permitted. Tax accountant
Time and project billing
Timesheets, WIP, retainers, milestone billing, purchase orders, and reporting to reduce write-offs and improve utilisation.
Bookkeeping
Accruals, revenue recognition, expense recharges, month-end close, AR follow-up and bank rules. Bookkeeping services
Payroll and super
STP Phase 2, super guarantee, contractor vs employee checks, leave setups, and director payroll. Payroll services
Advisory/VCFO
Pricing and proposal metrics, pipeline to capacity mapping, cash flow forecasting, KPI dashboards and board packs. Accounting services hub
Software we support
We work across the main small business platforms and common consultant add-ons:
- Core ledgers: Xero, MYOB Business, QuickBooks Online
- Time/Projects/WIP: Xero Projects, WorkflowMax by BlueRock, Harvest, MinuteDock, Float (cash flow)
- Docs and proposals: Dext, Hubdoc, PandaDoc, Qwilr, Ignition
- Payments/AR: Stripe, GoCardless, PayPal, Xero/MYOB invoices with online payments
The fit is about workflow, not logos. We map how time and expenses become accurate invoices, cash in the bank and clean reports.
Australian context to keep in view
- GST: Threshold of $75,000 turnover. Many consultants register early to claim credits and meet procurement requirements.
- PSI: If most income is from your personal effort, deductions and income splitting may be limited. Run the tests annually.
- PAYG instalments: Expect quarterly instalments once you are profitable; plan cash flow accordingly.
- Super and STP: Pay super on time and report via STP Phase 2 if you run payroll, including for directors receiving salary.
- Companies: ASIC compliance and documentation for dividends and director fees are essential.
What to compare before you commit
Scope
Ensure the scope covers the real issue “for consultants”: GST/PSI advice, time/project billing, BAS, payroll, and monthly close — not just year-end tax.
Software fit
Confirm hands-on fluency with your stack and add-ons, plus documented workflow and month-end timelines.
Turnaround and communication
Agree on response times, meeting rhythm, and how urgent issues are escalated during peak periods.
Commercial fit
Compare fixed-fee vs hourly, inclusions (BAS, payroll, meetings), reporting depth and advisory availability.
Common scenarios we handle
- Moving from sole trader to company after winning larger contracts.
- Cleaning up WIP, retainers and expense recharges to stop revenue leakage.
- Fixing GST coding on overseas services and travel.
- Setting up payroll, super and STP for the first employee or director salary.
- PSI assessment and documentation for annual tax planning.
Indicative pricing for consultants
Every engagement is scoped to complexity and volume. Typical ranges:
- Bookkeeping and monthly close: $300–$900+ per month or $120–$220/hr
- BAS preparation and lodgement: $220–$550 per quarter
- Annual financials and tax return (sole trader/company): $1,200–$3,500+
- Software setup/migration with time/project tools: $650–$3,000+
- Advisory/VCFO: $220–$400+ per hour or fixed retainer
We’ll quote upfront, align on deliverables and cadence, and avoid bill shock.
Best next steps
Write down the outcome you need first: clean books, lodged BAS, PSI guidance, payroll setup, better reporting, or software migration. Then shortlist providers against that outcome, not just a title.
Use these hubs as needed: Bookkeeping, Tax, BAS, Payroll, New business, or the Accounting services hub.
Frequently asked questions
What does a small business accountant for consultants do?
They maintain accurate books, manage BAS and tax, apply GST and PSI rules correctly, set up time/project billing, run payroll and super, and deliver useful monthly reporting and guidance.
Do consultants need to register for GST?
Yes once your GST turnover hits $75,000. Many register earlier to claim GST credits and meet client procurement requirements. We’ll confirm timing and handle the registration and setup.
How do PSI rules affect consultants?
PSI can limit deductions and income splitting if most income is from your personal efforts. We apply the ATO tests and document your position each year so tax and structure choices are sound.
Which software stack works best?
Xero, MYOB or QuickBooks Online plus time/project tools like Xero Projects, WorkflowMax by BlueRock or Harvest. We implement the stack and document the month-end close.
How should I pay myself?
Sole traders draw from profit and pay tax via returns and PAYG instalments. Companies often use a salary (with PAYG and super) plus dividends. We model cash and tax before recommending a mix.
What should I read next?
Explore Small Business Accountant, compare for contractors, or go to the Help Centre for specific how‑to articles.