Accounting
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Accountants for Contractors.
Specialist accounting for contractors
You’re running projects, managing subcontractors, and juggling multiple clients across different sites. The work keeps coming, but so does the paperwork. Tax obligations pile up, invoices sit unpaid, and you’re never quite sure if you’re structured properly or paying more tax than you should.
Walker Hill provides accounting and tax services to contractors across Brisbane and Australia. We handle your bookkeeping, tax planning, compliance, and provide other key services so you can focus on delivering projects and growing your business. You’ll know exactly where your money’s going, what you can claim, and how to protect what you’ve built.
Types of Contractors We Provide Accounting Services For
Contracting isn’t one-size-fits-all, and neither is the accounting behind it. We work with contractors across a wide range of industries, each with distinct financial complexities.
- IT contractors
- Construction contractors
- Engineering contractors
- Mining and resources contractors
- Manufacturing contractors
- Logistics and transport contractors
- Consulting contractors
- Creative contractors
Whether you’re a sole trader operating independently or running a contracting business with your own team, we set up accounting systems that match how your specific contracting model operates. The financial challenges you face depend on your industry, your client base, and how you structure your contracts.
Accounting Services We Offer Contractors
Tax Advice, Returns and Compliance
We prepare and lodge your tax returns, Business Activity Statements (BAS), and manage all your tax obligations on time. You won’t miss a deadline or cop penalties because something slipped through. Our registered tax agents keep you compliant with Australian Taxation Office requirements year-round through our BAS agent services.
Bookkeeping Services
Your transactions get recorded, categorised, and reconciled monthly. You’ll always know what’s in the bank, what clients owe you, and what you owe suppliers. We provide comprehensive bookkeeping services built around how contractors actually operate, not generic small business templates. Our bookkeeping services handle the daily financial admin so you don’t have to.
Payroll and Superannuation Management
If you’ve got employees or subcontractors, we handle PAYG withholding, superannuation obligations, and Single Touch Payroll reporting. Everything stays compliant, gets lodged on time, and you’re protected if the ATO comes asking questions. Our payroll services take the entire burden off your plate.
Cash Flow Forecasting and Management
Contractors deal with lumpy income, delayed payments, and expenses that can’t wait for the next invoice to clear. We build forecasts that account for project timelines, payment terms, and seasonal variations so you know when money’s coming and whether you can take on the next contract.
Tax Planning and Minimisation.
We work with you throughout the year to structure your financial affairs in a way that legally reduces your tax obligations. That means identifying deductions you’re entitled to, timing income and expenses properly, and making sure your business structure is working for you, not against you. Our approach to business tax planning is proactive, not reactive.
Business Structure Advice
Operating as a sole trader might have worked when you started, but as your contracting business grows, the right structure becomes critical for asset protection and tax efficiency. We advise on when and how to move to a company, trust, or combination structure that protects your assets and reduces what you pay. Our business structuring services are tailored to where your business is headed.
Financial Reporting and Business Advisory.
You’ll get monthly or quarterly financial reporting that shows where your money’s going and whether your business operations are heading in the right direction. We don’t just hand you a profit and loss statement and disappear. We work closely with you to interpret the numbers and give you business advice that actually helps you make decisions. Our business advisory services provide the strategic support contractors need to scale sustainably.
Virtual CFO Services
For contractors running larger operations or managing significant contracts, we act as your outsourced finance function. That means budgeting, forecasting, KPI tracking, and strategic business planning alongside your leadership. Our virtual CFO services give you the financial expertise of a CFO without the full-time cost.
Why Do Contractors Need Specialist Accounting?
Contractors operate in a grey zone that most small business accountants don’t understand properly. You’re running your own business, but you’re often working on client sites, embedded in their operations, using their systems. The ATO scrutinises contractor arrangements heavily, and getting your structure wrong can result in reclassification as an employee, back taxes, and penalties.
The tax requirements for contractors are different too. You’re claiming expenses that employees can’t, you’re managing GST on services tax, and you’re responsible for your own superannuation. Miss deductions and you overpay. Claim things incorrectly and you risk an audit. Registered tax agents who specialise in contractor accounting know exactly where the lines are and how to keep you on the right side of them.
Then there’s the complexity of managing business finances when your income isn’t consistent. One month you’re turning over $50K, the next you’re between contracts and bringing in nothing. Your accounting needs to handle irregular income, manage tax obligations across those peaks and troughs, and give you visibility over whether your business is actually profitable or just turning over money.
Contractor accountants understand these challenges. We know how independent contractors operate, what the ATO looks for when reviewing contractor arrangements, and how to structure your business to protect both your income and your assets. Our professional advice is specific to the contracting industry, not generic guidance that doesn’t fit how you work.
Common Accounting Challenges Contractors Face
Every contractor hits the same financial pain points. The ones who get ahead are the ones who solve these problems early.
Proving Contractor Status to the ATO
The ATO has specific tests to determine whether you’re genuinely operating as an independent contractor or if you should be classified as an employee. Get it wrong and your client could be liable for PAYG withholding, superannuation, and payroll tax they didn’t deduct. You could also be hit with incorrect tax treatment on your returns.
Walker Hill reviews your written contract, working arrangements, and business structure to ensure you meet the ATO’s contractor tests. We document everything properly so if questions are ever asked, you’ve got the evidence to back up your status. This is particularly important for IT contractors and consultants who work on client sites.
Managing Irregular Income and Cash Flow
You might invoice $80K one month and $5K the next. Expenses don’t stop when the work slows down. Insurance, accounting software subscriptions, equipment leases, and your own living costs keep ticking regardless of whether you’re between contracts or not.
Walker Hill builds forecasting around your contract pipeline so you know how long you can sustain periods without work. We also help you set aside money during the busy periods to cover the quiet ones and plan for your tax returns, so you’re never scrambling to pay bills when work dries up.
Separating Business and Personal Finances
Plenty of contractors mix personal and business money in the same account. You use your business account to pay for groceries, or your personal card to buy work equipment. By tax time, everything’s a mess and you’re trying to remember which transactions were business-related.
Walker Hill sets you up with proper separation from day one. You’ll have a dedicated business bank account, clear processes for recording business expenses, and accounting software that connects directly to your accounts. Your financial affairs stay clean, compliant, and ready for tax time.
Claiming All Available Tax Deductions
Contractors are entitled to claim expenses that employees can’t touch. Home office costs, professional development, insurance, equipment depreciation, travel between client sites, and industry-specific tools all reduce your taxable income. Miss them and you’re paying more tax than you need to.
Walker Hill tracks every deductible expense throughout the year so nothing gets missed when we prepare your tax returns. We also advise on what you can and can’t claim, so you’re not leaving money on the table or claiming things that trigger an audit. Our guide to tax deductions for small businesses covers what contractors need to know, including work from home deductions for contractors operating from a home office.
Navigating Superannuation Requirements
If you’re a sole trader contractor, you’re responsible for your own superannuation contributions. If you’ve got employees or engage subcontractors, you need to know whether superannuation guarantee obligations apply. The rules aren’t straightforward, and getting them wrong is expensive.
Walker Hill handles your super requirements so you’re never caught out. We’ll set up your own contributions, advise on concessional contribution limits, and manage employee super if you’ve got a team.
Dealing with Multiple Clients and Complex Invoicing
You’re juggling multiple projects, different payment terms, and clients who all handle invoicing differently. Some pay on 30 days, others on 60. Some want detailed breakdowns, others just want a number. Keeping track of who owes what and when payments are due becomes a project in itself.
Walker Hill sets up systems through your accounting software that standardise your approach while meeting each client’s requirements. We track outstanding invoices, send reminders, and flag when payments are overdue so you’re not chasing money weeks after it should have landed. This is part of our comprehensive bookkeeping services for contractors.
Understanding PAYG Withholding and Tax Instalments
Some contractors get paid with PAYG withholding taken out by the client. Others don’t. If you’re on PAYG instalments, the ATO expects quarterly payments based on your estimated annual income. Get the estimates wrong and you’re either lending the ATO money interest-free or facing a big bill at tax time.
Walker Hill manages your PAYG obligations and advises on whether your instalments are set correctly. If your income changes, we adjust your instalments so you’re not overpaying or underpaying. You’ll know exactly what’s owed and when.
Protecting Assets and Managing Risk
Contractors face liability risks that employees don’t. A project goes wrong, a client alleges professional negligence, or equipment damages someone’s property. Without the right structure and the right insurance, your personal assets are exposed.
Walker Hill advises on business structures that provide asset protection and ensures you’ve got appropriate insurance coverage for your industry. We’ll review your professional indemnity, public liability, and income protection to make sure you’re covered if something goes wrong.
Scaling from Solo Contractor to Business Owner
You start as a sole trader, then the work picks up. You bring on your first employee or subcontractor, then another. Suddenly you’re running a small business, not just contracting, and the accounting complexity multiplies. Your bookkeeping needs expand, payroll kicks in, and your business operations become more complex.
Walker Hill helps you scale without losing control. We set up payroll systems, contractor agreements, and financial reporting that works as your business grows. You’ll know when it’s time to restructure, when to hire, and whether your pricing supports the team you’re building.
How Walker Hill Supports Contractors?
We don’t treat contractors like every other small business. The financial challenges, tax obligations, and compliance requirements are specific to how contractors operate, and our services reflect that.
Business Structure
We start by getting your structure right. That means reviewing your current setup, identifying risks, and advising on whether you need to restructure for better protection and tax efficiency. If you’re operating as a sole trader but should be a company, we’ll tell you. If your contracts don’t properly establish your independent contractor status, we’ll help you fix them.
Automated Accounting Systems and Clean Financial Records
On the accounting side, we integrate your business accounting software with your bank feeds so transactions flow through automatically. You won’t be manually entering invoices or expenses. Everything gets categorised correctly, your books stay current, and your financial reporting reflects what’s actually happening in your business. We work with Xero, MYOB, and other platforms, setting them up properly from day one.
Proactive, Year-Round Tax Planning
Tax planning happens throughout the year. We don’t wait until tax time to tell you what you owe. We work with you to time income and expenses, maximise deductions, and structure your affairs to legally reduce your tax obligations. You’ll know what’s coming well before lodgement.
Project-Based Profitability Reporting
For contractors juggling multiple projects, we provide financial reporting that breaks profitability down by client, by project, and by service type. You’ll know which work is making money and which clients are costing you more than they’re worth.
Direct Access to Contractor-Savvy Accountants
You’ll also have direct access to expert accountants who understand contracting. Got a question about whether you can claim a specific expense? Need advice on pricing a new contract? Want to know if it’s time to hire? Ask, and you’ll get professional advice based on your actual situation, not generic small business guidance.
Brisbane Based Accountants, Supporting Contractors Locally and Australia Wide
Find Us in Brisbane
We’re based in Petrie Terrace, close to the CBD and accessible from anywhere in greater Brisbane. You can meet us in person, call, or email through your contracts and financial questions.
Office Address: Level 2, 80 Petrie Terrace, Brisbane, QLD 4000
Phone: 07 3367 3155
Email: support@walkerhill.com.au
Office Hours: Monday to Friday, 8:30am — 5:00pm
Appointments available outside business hours by arrangement if you need to meet after hours.
Virtual Accounting Services for Contractors Nationwide
You don’t need to be in Brisbane to work with us. We support contractors right across Australia using cloud-based accounting software, video calls, and shared document platforms. Whether you’re based in Sydney, Melbourne, Perth, or working remotely on mining sites, you’ll get the same level of service and expertise.
Everything happens online, helping you save time. You upload contracts and receipts, we handle the bookkeeping and compliance, and you get regular financial reporting that keeps you on top of your business financial health.
Book a Free Contractor Accounting Strategy Session
We’ll review your current setup, identify gaps in your structure or compliance, and show you how we’d handle your accounting going forward for long term success. No obligation, no pressure. Just a straight conversation and expert advice with registered tax agents who specialise in contractor accounting.
This free consultation covers your business structure, tax obligations, and what a proper contractor accounting setup looks like for your situation.
Call us on 07 3367 3155 or email support@walkerhill.com.au to book your session.
Xero Partner and Finalist.
Xero Accounting Partner of the Year Finalist FY22
FAQs About Contractor Accounting
What's the difference between a contractor and an employee for tax purposes?
The ATO looks at several factors including whether you control how the work is done, whether you can delegate or subcontract, whether you provide your own tools and equipment, and whether you’re integrated into the client’s business. Independent contractors operate independently, bear their own risk, and can work for multiple clients. Employees work under direction, have set hours, and the employer controls how work is performed. Get it wrong and the tax treatment changes entirely.
Do I need an Australian Business Number (ABN) to work as a contractor?
Yes. Operating as an independent contractor without an Australian Business Number means clients must withhold 47% of your payment for tax purposes. An ABN allows you to invoice properly, register for GST when required, and claim business expenses against your income. You’ll also need a registered business name if you’re trading under anything other than your own name.
Can I claim home office expenses as a contractor?
Yes, if you use part of your home exclusively for business or as your principal place of work. You can claim a portion of rent or mortgage interest, utilities, internet, phone, and office equipment. The ATO has specific calculation methods depending on your circumstances. Our article on work from home deductions explains what you can claim and how to calculate it properly.
When do I need to register for GST as a contractor?
You must register for GST once your annual turnover reaches $75,000, or if you reasonably expect it to reach that threshold. Many contractors register voluntarily even if they’re under the threshold because it allows them to claim GST credits on business expenses. Once registered, you’ll charge GST on your services and lodge quarterly or monthly BAS returns.
Should I operate as a sole trader or set up a company?
Starting as a sole trader is common for new contractors because it’s simple and low-cost. However, as your income grows or your business takes on more risk, a company structure offers better asset protection and potential tax advantages. The decision depends on your income level, risk exposure, and long-term goals. Our business structuring advice page explains the options in detail.
How much should I set aside for tax as a contractor?
A general rule is to set aside 30-35% of your income to cover income tax, GST, and other obligations. The exact amount depends on your total income, business structure, and available deductions. Work with your accountant to calculate your actual tax position and adjust your savings accordingly. Don’t wait until you lodge your tax returns to find out you haven’t saved enough.
What insurance do I need as a contractor?
Most contractors need professional indemnity insurance and public liability insurance as a minimum. Depending on your industry, you may also need workers compensation insurance, equipment insurance, and income protection. Many clients won’t engage contractors without proof of adequate insurance. The right insurance protects both your business and personal assets if something goes wrong.
Let’s talk accounting.
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