Agencies Accounting & Tax Services in Australia

Our Australian agency accounting services are tailored for the specific needs of various service-based firms:

• Digital Marketing Agencies: SEO, PPC, and social media firms that manage client ad spend and need to distinguish between their service revenue and pass-through costs.
• Creative & Design Studios: Branding, web development, and content production agencies that must meticulously track project costs, including software licenses and freelance talent fees.
• Public Relations (PR) Agencies: Firms handling monthly retainers, event budgets, and media-related expenses, requiring transparent and accurate financial reporting for their clients.
• Management & Business Consultancies: Professional service firms billing clients based on time and materials and needing to ensure every hour is captured and every project is profitable.

While professional financial oversight is always beneficial, specialized agency accounting becomes mission-critical at several key growth points:

• When You Land Your First Major Client: Managing a significant project or retainer requires a robust system for tracking costs, recognizing revenue correctly, and managing cash flow.
• When You Hire Your First Employee or Contractor: This triggers PAYG withholding and Superannuation obligations for employees, or requires careful management of contractor agreements to avoid compliance issues.
• When You Cross the GST Threshold: Once your turnover exceeds AUD $75,000, you must register for GST, issue tax invoices, and file regular Business Activity Statements (BAS).
• When You Work with International Clients: Billing in multiple currencies introduces foreign exchange complexity and requires adherence to specific GST rules for exported services.
• When You Want to Scale or Seek Investment: To grow sustainably, you need data-driven insights into your most profitable services and clients. Investors will demand detailed, accurate financial reports.

Outsourcing your agency's accounting provides access to specialized skills that enhance profitability and ensure compliance, at a fraction of the cost of a full-time finance team.

• Small Agency / Boutique Firm (1-5 people): AUD $900 - $2,000 per month. This typically includes core bookkeeping, BAS preparation, payroll, and basic project profitability reporting.
• Growing Agency (5-20 people): AUD $2,000 - $5,000 per month. This level adds more detailed MIS reporting, cash flow forecasting, and management of more complex client accounts.
• Established Agency (20+ people): Custom pricing starting from AUD $5,000+, often including fractional CFO services for strategic planning and financial leadership.

Agencies in Australia face specific compliance risks that can result in significant penalties if not properly managed:

• GST Non-Compliance: Incorrectly calculating GST liability, especially on mixed-supply invoices or international services, and late filing of BAS can lead to significant penalties and interest from the ATO.
• Project Unprofitability: Without accurate cost tracking, agencies can unknowingly lose money on high-profile projects, which can quickly drain cash reserves and threaten the business's viability.
• Improper Revenue Recognition: Recognizing revenue from large advance payments before the service is rendered violates Australian Accounting Standards (AASB 15) and can lead to misleading financial reports.
• Employee vs. Contractor Misclassification: Incorrectly classifying an individual as a contractor can lead to significant liabilities for unpaid superannuation and other employee entitlements.

Agency leaders excel at creativity, client management, and strategy—not Australian tax law or management accounting. Outsourcing the finance function to YourLegal allows you to focus on your core business while we provide the financial backbone for your growth.

We implement cloud-based systems to provide real-time insights into your project profitability and overall financial health. Our team of experts manages your GST, payroll, and company tax compliance, ensuring you meet all deadlines and optimize your tax position. By transforming complex financial data into clear, actionable reports, we empower you to make smarter decisions on pricing, staffing, and client selection, helping you build a more profitable and resilient agency in Australia.