Profit-Focused Advisory for Growth-Oriented Practices
Melbourne Accountants for Professional Services Firms
Accredited. Connected. Trusted.
Certified Melbourne Accountants Backed by Australia’s Leading Platforms
How We Help You Stay Profitable and Predictable
Efficiency And Optimization
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 through business advisory and 3-way forecasting.
-
Quarterly advisory — we’ll meet regularly to review results and plan for growth.
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.
Entity structure: Advice on the right vehicle as you grow - whether sole trader, partnership or trust - for tax efficiency and asset protection.
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.
Many of our clients sit across overlapping sectors. If you’re an early-stage practice, see our startup accounting and advisory page; technology firms can explore tech, SaaS & IT accounting; and health practitioners operating as consultants can review our accounting for doctors and health practices
YOU MAY NEED TO KNOW
Frequently Asked Questions – Accounting for Professional Services Firms
Do consultants need a specialist accountant?
Yes. Professional services firms commonly operate under Personal Services Income (PSI) rules, partnership structures or trusts, each with distinct tax and compliance consequences.
A specialist accountant ensures compliance while structuring for tax efficiency and asset protection.
What is Personal Services Income (PSI)?
PSI is income earned mainly as a reward for an individual’s personal effort or skills (Division 85, ITAA 1997). If the PSI rules apply, deductions are limited and income cannot be split with associates.
You can self-assess as a Personal Services Business (PSB) if you meet the results test, or pass the 80% rule (no single client and its associates provides 80% or more of your PSI) plus one of the unrelated clients, employment or business premises tests. Otherwise, the income is attributed to you. See our PSI guide.
How can consulting firms improve profitability?
Profitability improves through better visibility and pricing: monitoring utilisation rates, managing billable vs non-billable time, reviewing pricing strategy, forecasting staff capacity and controlling overheads.
Our business advisory and 3-way forecasting service builds this reporting around your practice.
What is Division 7A and why does it matter?
Division 7A (ITAA 1936) stops a private company providing profits to shareholders or their associates tax-free. A loan, payment or forgiven debt can be treated as a deemed unfranked dividend in the recipient’s assessable income. It can usually be avoided by putting a complying loan agreement in place (minimum benchmark interest and a maximum term) before the company’s lodgment day. We manage this as part of tax planning.
How can professional services firms manage irregular cash flow?
Service firms often face delayed payments, so cash flow is stabilised through structured invoicing terms, retainer agreements, forecasting, monitoring debtor days and working-capital planning. A 3-way forecast links profit, balance sheet and cash so you can see pinch points early. Staying ahead of ATO due dates also protects cash.
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. Compare the options in our guides to the sole trader structure and partnership structure.
How can professional firms reduce tax legally?
Through compliant planning: superannuation contributions, income timing, asset write-offs, distribution structuring and reviewing the entity structure - all within Australian tax law and anti-avoidance rules (including Part IVA). See how we approach tax planning and payday super obligations.
Do professional services firms need advisory support beyond tax?
Yes. Compliance alone does not drive growth. Advisory support covers revenue growth planning, capacity modelling, hiring strategy, pricing optimisation and business valuation.