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Accounting for Earth Moving & Excavation
Running an excavation and earthworks business is hard work. It is dangerous work and apart from the physical demands of the trade you also need to contend with long hours, safety regulations and deadlines.
While your clients expect you to complete bobcat work, excavation, trenching, levelling, site cleans and dirt removal, bookkeeping and tax often don’t the attention they deserve. While GST, BAS and tax payments often represent some of the largest financial obligations for a excavator or earth moving business owner, many end up paying too much tax and incur fines for non-compliance.
Here at R J Tyrrell & Co we understand what is involved in running a successful excavation and earthworks business. Apart from the usual small business compliance issues of GST, BAS, PAYG and superannuation, we can assist you with managing your cash flow and help you obtain finance for your bobcat, trencher, post hole drill and tipper truck. We’ll make sure the finance is structured for maximum tax effect and help you select the most appropriate accounting software for your business and manage your payroll and sub-contractors.
THINKING OF STARTING AN EXCAVATION OR EARTH MOVING BUSINESS
As a business start-up specialist our team of accountants have helped dozens of excavation and earth moving business owners get their business off to a flying start. We offer you experience, technical tax knowledge and most importantly, an intimate understanding of your industry.
Starting a business is a bit like building a house. You need solid foundations including the right taxation structure, accounting software, insurances, a marketing plan, a website and a social media presence. It all starts with your choice of business structure and there are a number of different options such as company, sole trader, partnership and trust. When selecting a business structure asset protection is a key consideration as well as your family situation, forecast level of profit and your future plans regarding the admission of new business partners.
Accounting software is another brick in your foundation wall and the wrong choice can be catastrophic. Poor financial records are one of the biggest causes of business failure in this country and up to date, accurate financial records let you make informed business decisions. Your software program needs to match your business needs with your level of accounting skill because too many business owners use sophisticated double entry accounting programs and produce 'computerised shoebox' records. One of our priorities is to help you minimise the cost of compliance which in some cases includes training you to use the software. We support a range of software programs but do have a preference for cloud based solutions like Xero.
To build a house you also need the right tools and when 'constructing' your business we have developed a number of tools including a start-up expense checklist that dissects your start-up costs into categories like equipment, IT costs, professional fees, marketing costs and a website. These figures then slot into a cash flow budget template and form the basis of your first year profit and loss projections. For someone in the earth works game, your car or ute is arguably one of your most important business tools and you can download our Motor Vehicle Tax Guide that explores the alternative methods of claiming your vehicle expenses and the distinction between a business and private trip for tax purposes.
Through our affiliate partners we can assist you with vehicle finance (chattel mortgage or lease) and even get you a fleet discount on your new car, ute or light commercial van that could potentially save you thousands of dollars. That’s just the beginning because as accountants we can do some financial modelling and prepare some ‘what if’ scenarios to identify your best and worst case profit scenarios. Next, using industry benchmarks we can compare the performance of your business against your competitors so you understand what is working in your business and what needs working on.
MARKETING YOUR EARTH WORKS BUSINESS
Most builders rely on their reputation and referrals to grow their business and while these ingredients remain important, you need to shift your marketing focus online. Increasingly local searches like ‘Earth works and excavation Pakenham’ are driving traffic to your website and often your website is the first touch point with a potential new customer. As you know, you only get one chance to make a good first impression and your website and marketing can be the difference between boom and gloom in your industry.
One of our biggest points of difference compared to other accounting firms is our marketing expertise. We can assist you with your branding (business name, logo and slogan), your corporate brochure and help you harness the power of social media to win more referrals. Over the past few years we have worked with dozens of clients to help them create affordable, quality lead generation websites. We'll make sure your website is responsive to smart phones and tablets and provide advice and guidance with your website content including video production. If your website lacks calls to action or lead magnets we'll help you build them plus we'll introduce you to strategies like re-marketing and search engine optimization to drive more traffic to your website.
If you aren’t using some of these marketing techniques your business probably won't reach its full profit potential.
The marketing process begins with your branding and we have worked through the process with dozens of clients over the years and using some online resources we can help you build a modern brand that resonates with your target market. We can even help you develop your stationery at a fraction of the cost of engaging a graphic artist or marketing consultant.
We recognise the fact that business owners want more sales, more customers and more profit so we also give you access to one of the world’s most successful marketing programs, the ‘Business Growth System’. It contains details of more than 80 breakthrough marketing strategies supported by videos, templates and checklists. Access to this ‘vault’ of resources would normally cost you $500 per month ($6,000 per annum), however, as a client of the firm you get FREE access. In addition, you also get unlimited access to the ‘Grow Your Business in 5 Days’ video training course that could have a massive impact on your future business growth.
Our unique business approach is all about fast tracking your business success and the team at R J Tyrrell & Co offer you a range of accounting, taxation and business coaching services including:
- Start-Up Business Advice for Excavation & Earth Moving Business Owners
- Advice regarding the Purchase or Sale of your Business
- Tools including the Start-Up Expense Checklist and Templates for a Business Plan, Cash Flow Budget, Letterhead and Business Card
- Advice and Assistance with the Establishment of Your Business Structure
- Tax Registrations including ABN, TFN, GST, WorkCover etc.
- Preparation of Business Plans, Cash Flow Forecasts and Profit Projections
- Accounting Software Selection and Training – Bookkeeping, Invoicing, Quotes & Payroll
- Preparation and Analysis of Financial Statements
- Preparation of Finance Applications
- Bookkeeping and Payroll Services
- Tax Planning Strategies
- Assistance with your Marketing including your Branding, Corporate Brochure etc.
- Advice and Assistance with your Website Development, Content and SEO
- Wealth Creation Strategies and Financial Planning Services
- Industry Benchmarking and KPI Management
- Vehicle & Equipment Finance (Chattel Mortgage & Lease)
- Monitoring and Controlling Labour and Sub-Contractor Costs
- Advice & Assistance with Pricing your Services and Claiming Motor Vehicle Expenses
- Recession Survival Strategies
- Advice regarding Employee Relations and Workplace Laws
- Business & Risk Insurances (Income Protection, Life Insurance etc.)
- Business Succession Planning
We are more than just tax accountants. We are ‘business and profit builders’ who provide strategic advice and practical business solutions designed to give you a serious competitive advantage in your industry. We work hard to understand your business and over the past decade the earth moving and excavation industry has become a niche area within our accounting practice. If you're looking to get your business off to a flying start or you want to dig a bit deeper into your current business results, call us today.
If you're a committed and ambitious earth moving and excavation business owner looking to accelerate your business success we invite you to book a FREE, half hour introductory consultation to discuss your business needs. You'll get practical business, tax, marketing and financial advice designed to help you build your business and grow your wealth. To book a time, contact us today on (03) 5941 4868 or complete your details in the box at the top of this page.