Professional Services

How We Help Professional Services Businesses

Our accounting and advisory services include:

• Financial statements and tax returns
• Bookkeeping and account reconciliations
• GST and BAS preparation
• Payroll and superannuation
• Cash flow budgeting and forecasting
• Management reporting and KPI tracking
• Work-in-progress and unbilled revenue reviews
• Profitability and cost analysis
• Business structuring and restructuring
• Tax planning
• Business valuations
• Finance and loan documentation

Revenue and Profitability Reporting

Revenue alone does not show whether a professional services business is operating profitably. Employee costs, contractor fees, software, insurance, rent and other overheads can significantly affect the final result.

We prepare financial and management reports that help business owners understand revenue, direct costs, overheads and profitability. Reporting may also be prepared by service line, office, project or other relevant business area.

Work in Progress and Billing

Delays between completing work, issuing invoices and receiving payment can place pressure on cash flow.

We assist businesses with reviewing work in progress, unbilled revenue, invoicing processes and outstanding debtors. Clear reporting helps owners identify work that has not yet been billed and invoices that require follow-up.

Cash Flow Budgeting and Forecasting

Professional services businesses often have significant recurring expenses, including wages, superannuation, software subscriptions, rent and insurance.

We prepare budgets and cash flow forecasts to help business owners anticipate upcoming commitments, assess staffing decisions, plan major expenditure and understand the financial effect of changing revenue levels.

Management Reporting and KPIs

Management reports can provide a clearer view of the factors affecting business performance.

Depending on the business, reporting may include:

• Revenue by service line or project
• Gross profit and operating margins
• Employee and contractor costs
• Work in progress
• Debtor days
• Overhead expenses
• Cash flow
• Performance against budget

These reports help management identify trends, investigate significant changes and make decisions using current financial information.

Payroll and Superannuation

For many professional services businesses, employees are the largest operating cost.

We assist with payroll processing, Single Touch Payroll reporting, superannuation reconciliations and payroll tax compliance. We can also help business owners understand the financial effect of proposed salary changes and additional employees.

Tax and Compliance Support

We assist professional services businesses with ongoing obligations, including:

• Income tax returns
• Business Activity Statements
• GST reporting
• Payroll tax
• Superannuation
• Fringe Benefits Tax
• Year-end tax reconciliations
• ATO correspondence

We also provide tax planning before the end of the financial year and advice on the tax implications of significant business decisions.

Business Structuring and Tax Planning

The appropriate business structure may change as a professional practice introduces new owners, expands its services or prepares for succession.

We provide accounting and tax advice for sole traders, partnerships, trusts and companies. We can assist with reviewing existing structures, planning ownership changes and understanding the tax considerations associated with restructuring or succession.

Legal advice may also be required when making structural or ownership changes.

Who We Work With

We support a range of professional services businesses, including:

• Consultants
• Engineers
• Architects and designers
• Legal service providers
• Information technology businesses
• Marketing and creative agencies
• Recruitment and labour service providers
• Financial and business service providers
• Other professional practices

Talk to Our Professional Services Accounting Team

Whether you need assistance with tax compliance, bookkeeping, payroll, management reporting, cash flow forecasting or business planning, our team can provide support relevant to your professional practice.

Contact J&N Accountants to discuss your accounting needs and the financial priorities of your business.