BAS and bookkeeping for IT contractors, without the Sunday-night spreadsheet
IT contracting on an ABN looks simple, one client and one day rate, until the BAS turns up. The statement shows a fortnightly or monthly payment from a recruiter or client with GST on top, professional indemnity and public liability insurance, a certification renewal, a laptop, cloud lab costs, a co-working desk some weeks, and parking or train fares to a site you are at three days a week.
FlowFi reads the statement, records the day-rate income and its GST, sorts every cost, flags the deductions, and builds the quarterly BAS. Copy the labels into ATO Online and get on with the sprint.
General information only, not tax advice. Check your own situation with a registered tax agent or the ATO.
What FlowFi does for IT contractors
Records day-rate income and GST collected
Recruiter and client payments are recognised as income and the GST component goes straight to 1A.
Flags insurance, certs and hardware
PI and PL insurance, certification renewals and a new laptop are categorised and flagged as deductions.
Timesheet-based invoicing
Raise a monthly invoice for days worked with the PO number the client needs, and let reminders handle the follow-up.
Tax set-aside and cash-flow view
See the GST and income tax you should be putting aside from each payment so the April BAS is not a shock.
Builds the BAS from your statement
Upload the quarter, review the pre-filled figures and copy them into ATO Online. PAYG instalments are handled on the same form.
How it works
Upload your bank statement
Export a CSV or PDF from your bank (CBA, Westpac, NAB, ANZ, Macquarie and most others) and drop it into FlowFi. No bank login, ever.
AI sorts every transaction
Income, expenses, equipment and transfers are categorised, GST is worked out on each line and likely deductions are flagged for you to confirm.
Review and lodge your BAS
Check the pre-filled labels, copy them into ATO Online in about five minutes, or export the pack for your accountant. FlowFi does not lodge for you.
Common deductions for IT contractors
Expenses IT contractors often claim. FlowFi flags these categories as they appear in your statement so you can confirm each one.
- Professional indemnity and public liability insurance
- Certifications, exams and training that maintain your current skills
- Laptop, monitors and peripherals (written off or depreciated)
- Software, cloud labs and developer tools
- Co-working desk fees and a share of your home office
- Professional memberships and technical subscriptions
- Travel between client sites (not the daily commute to a regular site)
- Phone and internet on the business-use portion
General information only, not tax advice. Check your own situation with a registered tax agent or the ATO.
Email me the quarterly BAS checklist
The checklist now, then a few short notes on getting your BAS done. No spam, unsubscribe any time.
Pricing
Flat monthly pricing. No percentage of your income, no lock-in, cancel any time. Every account starts with 14 days of Pro free, no card needed.
Pro
or $290 a year (two months free). 14-day free trial, no card.
- Unlimited transactions and uploads
- Unlimited invoices with automatic reminders
- Full AI categorisation and deduction flags
- BAS preparation with a copy-guide for ATO Online
- Receipt scanning, mileage and cash-flow forecast
- One-click accountant export
Business
or $590 a year (two months free). For anyone with a bookkeeper or partner in the books.
- Everything in Pro
- Unlimited bank accounts
- Up to 5 users with role-based access
- Advanced AI insights
- AI support and API access
Questions IT contractors ask
Am I caught by the personal services income (PSI) rules?
Quite possibly, if more than half of your income is for your personal skills and it mostly comes from one client. PSI does not stop you contracting as a sole trader, but it does limit some deductions, such as rent to a spouse or certain home office claims. Your accountant can run the results test and the other PSI tests for you.
Can I claim the train to the client’s office?
If you go to the same client site most days, that is generally a regular place of work and the trip from home is private. Travel between two work locations in the same day, or to a client you visit occasionally, is usually deductible. Log the trips that qualify in FlowFi.
Do I have to pay PAYG instalments?
Once your tax return shows enough business income, the ATO will enter you into PAYG instalments and the amount appears on your BAS. Paying it each quarter means a much smaller bill at tax time. See our guide to PAYG instalments for how it works.
The recruiter pays me net of their margin. What is my income?
Check the recipient-created tax invoice or remittance from the recruiter. Usually your income is the amount on your invoice to them, and the payment you receive matches it. If they are deducting anything, record it as an expense so the BAS reconciles.
General information only, not tax advice. Check your own situation with a registered tax agent or the ATO.
Keep reading
FlowFi for related trades
Close the ticket on your BAS
Upload one bank statement and see day-rate income, insurance, hardware and GST already categorised.
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