In this article, I’m going explain exactly what Professional Automation Software (PSA) is and how it can help Australian consulting firms to consolidate and scale their businesses.
We’ll also discuss how PSA software is different from generic project management or time-tracking software and how it’s different from the more common ERP software.
Who am I and how can I help?
My name is Ben & I’m the founder of Drum, an Australian PSA software platform. You can book a call with me here to discuss how Drum can help your firm.
Understanding Professional Services Automation
At its core, PSA software integrates project management, resource allocation, time tracking, billing, and reporting functionalities into one unified system. Think of it as the operational backbone or a “single source of truth” platform that connects every aspect of your service delivery—from the moment a prospect enters your pipeline to the final invoice payment.
Consider John, a director at a 25-person engineering consultancy in Melbourne.
Before implementing PSA software, his team juggled between five different systems:
➡️ CRM for sales
➡️ Spreadsheets for resource planning
➡️ A separate time-tracking app
➡️ Spreadsheets to collate all the different data
The result? Data silos, billing errors, and countless hours lost to administrative overhead.
PSA software eliminates this fragmentation. It creates a single source of truth where project managers can see real-time resource availability, finance teams can generate accurate invoices from approved timesheets, and directors like John can understand project profitability and cashflow at a glance.
The global PSA software market is set to reach USD 25.25 billion by 2030, with over 18,198 companies worldwide already leveraging these platforms. For Australian firms competing against automated competitors, PSA adoption is a crucial step in a firms ability to consolidate and scale.
Core Components of Modern PSA Platforms
Resource management sits at the heart of any PSA system.
For professional services firms, balancing resource demand against capacity determines profitability. Modern PSA platforms provide visual resource planning tools that show who’s available, their skill sets, and current utilisation rates. This visibility transforms how firms allocate their most valuable asset: their people.
Time tracking and project accounting work hand-in-hand within PSA software. Since professional services firms essentially sell time and expertise, accurate time capture directly impacts revenue. PSA platforms automate time entry through various methods—from traditional timesheets to AI-powered suggestions based on calendar events and project activities.
For consultants specifically, time tracking becomes even more critical—learn more in our guide on time tracking software for consultants.
A core benefit of PSA software is in creating a “single source of truth” for your business.
Prior to building Drum, our team was building custom business software on a case-by-case basis and simply having a single platform for key operational requirements was a huge value lever.
The financial integration goes deeper than simple time tracking. PSA software enables project-level accounting, tracking expenses and revenues for each engagement. This granular visibility reveals which projects drive profitability and which drain resources. According to SPI Research’s 2024 report, businesses using PSA software increased operating margins by 40%, which is a testament to the power of integrated financial management and a “single source of truth”.
Automated billing capabilities reduce the administrative burden that often plagues service firms. Instead of manually compiling timesheets and expense reports, PSA software generates detailed invoices based on pre-configured rules and approved time entries. This automation not only saves time but also reduces billing errors and accelerates payment cycles.
Ideally, these invoices will integrate with your existing account software, e.g. Xero, MYOB or QuickBooks.
The Australian PSA Landscape
Australia’s professional services sector faces unique challenges that make PSA software particularly valuable. A competitive hiring landscape, increased automation and competition, as well as increasing wages in all professional services means that firm directors need financial oversight on their projects.
Industry adoption varies across sectors. IT consulting firms lead the charge, followed by accounting practices, engineering consultancies, and marketing agencies. Each sector leverages PSA capabilities differently. IT firms focus on resource utilisation, while accounting practices prioritise automated billing and compliance features.
As an example, the engineering firms that use Drum tend to prioritise:
- Time Tracking
- Progress claims & invoicing
- Resourcing
Australia also has a uniquely Xero-heavy landscape, with the accounting software having a significant foothold in the SMB market. For this reason, PSA software with world-class financial integration with Xero is crucial.
Drum is a Xero App Partner, with our customers reviews available here: https://apps.xero.com/au/app/drum/reviews
For directors of 10+ person professional service firms, PSA software addresses critical pain points. The leaders of these businesses need visibility into project profitability and simplified internal operations. PSA platforms deliver both, providing dashboards that surface key metrics while automating routine administrative tasks.
We find that it’s around 8-15 staff that professional service firms start to struggle with non-PSA solutions.
Beyond Traditional Project Management
PSA software transcends basic project management tools by integrating operational and financial data. While project management software tracks tasks and deadlines, PSA platforms connect these activities to revenue, costs, and profitability metrics.
This integration enables powerful forecasting capabilities. Firms can predict future resource needs based on pipeline opportunities, estimate project profitability before engagement, and identify potential budget overruns early. Such insights transform reactive management into proactive strategy.
Client experience also improves dramatically with PSA implementation. Transparent project tracking, accurate billing, and consistent communication build trust. Clients receive detailed invoices that clearly show value delivered, reducing payment disputes and improving cash flow.
The collaboration benefits extend internally as well. Team members access real-time project information, eliminating the confusion of outdated spreadsheets or conflicting email threads. Project managers can quickly identify bottlenecks, redistribute workload, and keep engagements on track.
Making the PSA Decision
As Australian professional services firms evaluate PSA software, several factors deserve consideration. Integration capabilities with existing tools (particularly accounting systems like Xero) ensure smooth data flow. Cloud-based deployment offers flexibility for distributed teams, increasingly important in today’s hybrid work environment.
Scalability remains crucial. The right PSA platform grows with your firm, supporting expansion without requiring system changes. Look for solutions that offer modular features, allowing you to start with core capabilities and add functionality as needs evolve.
User adoption determines success. Even the most powerful PSA software fails if teams don’t embrace it. Prioritise platforms with intuitive interfaces and comprehensive training resources. Consider how the system fits your firm’s workflow rather than forcing process changes to match software limitations.
We worked with a consulting firm in Townsville, QLD that was using a competitors PSA software, but due to a lack of training and the complexity of that software, both the management and operational teams struggled to get anything done.
As a result, they were paying $1,000 per month for their PSA and only using it for time tracking…
The investment in PSA software extends beyond subscription costs. Factor in implementation time, training requirements, and potential process improvements. However, with firms reporting 40% margin improvements and significantly reduced administrative overhead, the ROI typically justifies the investment within months.
The Path Forward
Professional Services Automation represents more than technological advancement—it’s a strategic imperative for Australian service firms. As client expectations rise and competition intensifies, PSA software provides the operational excellence needed to thrive.
For directors seeking to understand project profitability and simplify operations, PSA platforms offer clear solutions. By unifying project management, resource planning, time tracking, and financial management, these systems transform how professional services firms operate.
The question isn’t whether to adopt PSA software, but which platform best suits your firm’s needs. As you evaluate options, consider how each system aligns with your growth objectives and operational requirements. The right PSA implementation doesn’t just solve today’s challenges—it positions your firm for tomorrow’s opportunities.
Drum is Australian-based PSA software with world-class Xero integration.
We worked closely with professional service firms from our conception to ensure our system matched their internal workflows as much as possible.
Book a Discovery Call With The Drum Team Today!
