Young professionals collaborating in a creative office setting — representing Melbourne accounting, tax, and advisory services for professionals by 42 Advisory.

Profit-Focused Advisory for Growth-Oriented Practices

Melbourne’s Specialist Accountants for Professional Services Firms

42 Advisory provides structured tax planning, PSI guidance, profit optimisation, and fixed-fee advisory for Melbourne consultants and boutique firms ready to scale with clarity.
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Accredited. Connected. Trusted.

Certified Melbourne Accountants Backed by Australia’s Leading Platforms

Trusted by Melbourne’s medical professionals, ecommerce brands, and local service businesses. We simplify your tax, accounting, and growth strategy.
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How We Help You Stay Profitable and Predictable

Efficiency And Optimization

From Chargeable Rates to Profit Margins — We Bring Your Numbers into Focus

We help you move beyond just compliance. Our advisory process combines real-time cloud systems, financial modelling, and data-driven planning — giving you full visibility on:

  • Billable vs non-billable time — see where your team’s capacity is going.

  • Charge-out rates and margins — know what you should be charging for profitability.

  • Forecasting and resource planning — understand revenue capacity and hiring needs.

  • Quarterly advisory — we’ll meet regularly to review results and plan for growth.

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Founders, Clinics, and Brands Who Trust Our Numbers

What Our Clients Are Saying

Very professional, highly recommended!!!

Paul M
Extreme MMA

42 have been outstanding for our clinic. They handle our Tax, BAS, payroll, and complex medical structures with absolute precision.

Belinda C
PM of Family First Medical Centre

As an online retailer, our sales move quickly across multiple platforms. 42 Advisory built clear reporting, managed our inventory accounting

Katerina P
CEO of Watches of Mayfair

Fantastic service and such an easy experience from start to finish. My accountant made everything clear and stress-free. Highly recommend!

Maria P
Founder of MWM Pilates

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Tax, Structure & Compliance

Simplify Compliance, Strengthen Performance

We help you stay compliant while maximising your financial structure:

PSI/PSB Rules: Guidance on personal services income, ensuring your structure supports compliance and tax efficiency.

Contractor vs Employee: Advice on structuring your engagements properly to avoid tax complications.

Tax Planning: Quarterly reviews to optimise income distribution, deductions, and cash flow.

Cloud Accounting: Xero setups, automation, and digital workflows that save admin time.

Illustration of an accountant analysing data on a large screen, representing 42 Advisory’s technology-driven accounting automation and insights

Designed for Growth-Focused Service Firms

Your Numbers Should Work as Hard as You Do

We work with a wide range of Melbourne’s professional services, including:

✅ Legal practices and boutique law firms

✅ Marketing, PR, and digital agencies

✅ Engineering and architectural consultancies

✅ Business and IT consulting firms

✅ Contractors and freelance professionals

Whether you’re managing retainers, projects, or billable hours — we’ll help you make every number count.

YOU MAY NEED TO KNOW

Frequently Asked Questions – Accounting for Professional Services Firms

Do consultants need a specialist accountant?

Yes. Professional services businesses often operate under Personal Services Income (PSI) rules, partner structures, or trust arrangements.

A specialist accountant ensures compliance while structuring for tax efficiency and asset protection.

What is Personal Services Income (PSI)?

PSI applies when income is primarily generated from an individual’s personal effort or skills.

If PSI rules apply, certain deductions may be limited, and income-splitting opportunities may be restricted. Proper structuring is essential.

How can consulting firms improve profitability?

Profitability improves through:

  • Monitoring utilisation rates
  • Managing billable hours vs non-billable time
  • Reviewing pricing strategy
  • Forecasting staff capacity
  • Managing overhead costs

Financial visibility is critical for service-based firms.

What is Division 7A and why does it matter?

Division 7A prevents private companies from providing tax-free loans to shareholders or associates. Incorrect handling can trigger deemed dividends and additional tax.

How can professional services firms manage irregular cash flow?

Service-based businesses often face delayed payments. Cash flow can be stabilised through:

  • Structured invoicing terms
  • Retainer agreements
  • Forecasting
  • Monitoring debtor days
  • Working capital planning
When should a consultant move from sole trader to company?

Typically when income increases, risk exposure rises, or asset protection becomes important. Early structuring avoids costly restructuring later.

How can professional firms reduce tax legally?

Tax planning may include:

  • Superannuation contributions
  • Income timing strategies
  • Asset write-offs
  • Distribution structuring
  • Reviewing entity structure

All strategies must comply with Australian tax law.

Do professional services firms need advisory support beyond tax?

Yes. Advisory services help with:

  • Revenue growth planning
  • Capacity modelling
  • Hiring strategy
  • Pricing optimisation
  • Business valuation

Compliance alone does not drive growth.

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