Project records for consultants and service-based sole traders
When your business sells expertise or time, the records behind a project can matter as much as the final invoice. A practical system connects what was agreed, what was delivered, what was billed and what has been paid.
Use this checklist to organise a conversation with your accountant. Tax treatment depends on your circumstances.
Keep the agreement with the project
Store the accepted scope, changes and billing milestones together. If a client asks for extra work, record the change and how it affects invoicing. Where time is used to support billing, keep a consistent record rather than reconstructing a month from memory.
A fictional example: a consultant invoices a project in three stages, but the second invoice includes extra work. A short note linking that extra work to the agreed change helps explain the payment later.
Separate invoicing from cash received
Maintain a list of invoices issued, amounts received and amounts still unpaid. A busy diary is not the same as cash in the bank. Before committing to a new expense, look at expected receipts and upcoming payments, and label forecasts as estimates.
Your accounting and GST methods affect how transactions are reported. Ask your accountant which method applies instead of changing settings to match a spreadsheet.
Capture recurring and overseas costs clearly
Keep invoices for software, subscriptions, professional services and equipment. Mark what period a payment covers and whether an item has both business and personal use. If an invoice involves another currency, retain the original document and payment evidence for review.
Working from home, personal services income and cross-border work can raise questions that depend on your circumstances. Put these on your discussion list; a general checklist cannot settle eligibility or deductions.
Set a small monthly review
Look for unbilled completed work, overdue invoices, duplicated subscriptions and transactions without supporting documents. Identify the next action and owner for each unresolved item. Keep the review list separate from confidential client work; your accountant usually needs the financial evidence, not an entire client project archive.
Prepare the first discussion
Explain your business structure, how you charge, whether anyone works for you and which records are current. Mention any outstanding reporting period or deadline immediately. Regans can discuss the scope of its bookkeeping and business accounting services and provide a quote before work begins.
For a general introduction to tracking expected receipts and payments, see business.gov.au's cash flow statement guide.
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