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30/08/22 | Article

Accounting for Builders.

Running a building business is hard work. The physical challenge aside, you need planning, scheduling, and financial skills to manage your cash flow, apprentices and sub-contractors.

The long hours, travel and regulations are all challenges you face, and which probably explain why builders and tradespeople neglect paperwork. GST, BAS and tax payments often represent some of the most substantial financial obligations for self-employed tradies; where many end up paying too much tax and incur fines for non-compliance. We don’t want this to be you.

We know the building industry. As accountants who understand the mechanics of the building industry, it can mean the difference between just surviving and potentially thriving.

Apart from the usual small business compliance issues of GST, BAS, PAYG, and superannuation, we assist our clients to manage their cash flow and select the right software to prepare quotes, invoices and manage their staff and apprentices. Over the past two decades, we have worked with dozens of builders, plumbers, electricians, and carpenters through the various stages of their business life cycle.

We offer you experience, technical tax knowledge and most importantly, an intimate understanding of the building trades.

Thinking of starting a building business?

If you are looking to start a business as a builder or tradesman, or buy into an existing business, there are numerous issues to consider. You need to establish your business structure, complete tax, and GST registrations, consider insurances, select an accounting software program and possibly explore your finance options. It can be a maze of issues, but as your accountant and business advisor we can assist you in all of these areas plus provide advice on the preparation of a business plan, marketing plan and a cash flow budget.

If you are contemplating employing staff, we can also assist you with human resource matters including payroll, WorkCover and superannuation guarantee obligations.

Over the past two decades, our team of accountants has helped dozens of builders get their business off to a flying start.

We offer you experience, technical tax knowledge, marketing expertise and most importantly, an intimate understanding of the building industry.

When selecting the most appropriate structure for your business, we always recommend you ‘start with the end in mind’ because Australian tax laws are complex and changing your business structure at some point can trigger a capital gains tax event that could prove very costly.

Whenever we provide advice on business structures we always take into account:

  • Income Tax Minimisation
  • Maximize Asset Protection
  • Allow for the Admission of New Business Partners or Investors
  • Comply with all Legal Requirements in your Industry
  • The Risk Profile of Your Industry
  • Consider Future Entitlement to Discount Capital Gains Tax Concessions

Consequently, we often find the business structure is a compromise based on the relative importance of each of these issues.

A key decision in the establishment of your business is your choice of accounting software. Poor record keeping is one of the biggest causes of business failure in this country; up to date and accurate financial records let you make informed business decisions. The wrong choice of software can be catastrophic. Too often we find business owners produce records that cause frustration waste time that result in additional fees. This conflicts with our mission of helping you slash the time and cost associated with bookkeeping including GST compliance.

This is just the beginning of what we can do for your business as your accountants. We can do some financial modeling and prepare some ‘what if’ calculations based on different price points, so you know your business’ best- and worst-case profit scenarios.

If you would like to make an appointment or learn more, contact us today.

The information provided  in this BLOG is of a general nature only and has been provided without considering your objectives, financial situation or needs. Because of this you should consider whether the information is appropriate considering your objectives, financial situation and needs.

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