Tradies – great advisory clients!
Business Advisory Services Update
If you are a small accounting firm or a bookkeeper, and you are wondering where to start on the “business advisory journey”, why not become an expert on services for tradies?
Assistance in a number of areas can be provided for tradies to improve their business performance, such as:
Calculation of Charge out Rates
This will produce the targeted profit for the tradies’ business:
- Factoring in the “labour overhead costs” – training, sick and holiday pay, long service leave provision, apprenticeship training.
- Individual team members working hours and productivity percentage estimate.
Business Overhead Expenses
Estimate of external purchases to be made on behalf of the client and the “mark-up” to be applied to those purchases.
ESS BIZTOOLS has developed the “Tradie Charge out Rate Calculator” that our subscriber accountants use, to advise clients on effective charge out rates which, so long as productivity and work hours are in line with the budget estimates, will assist the tradie business to generate the targeted profit.
Key Performance Indicator Analysis
This is a monthly review of all of the key figures to ascertain whether any charge out rates should be recalculated, because of a variation in the actual productivity being achieved by a team member that cannot be changed.
Preparation of “Monthly Financial Accounts
This will enable a comparison to the profitability estimate incorporated within the “Calculation of Charge out Rates.”
Facilitation of a “Monthly Advisory Board Meeting”
To review the financial performance of the tradie business and other issues that your client wishes to discuss.
“The ESS BIZTOOLS papers are really helpful, ready to go and they just work. Some tools I’ve used in serving my clients over 100 times, I recommend the ESS toolkit to other practitioners at any opportunity I get.” – Angelo Coco, Chartered Accountant and Principal, Family Business Support.
Most small accounting firms have a number of tradie clients. This is an ideal group of businesses with which to commence your “Business Advisory Journey”.
Why not get this journey off to a great start? Join us as we present a complimentary webinar – Small Firms Benefits of Advisory Services – on Thursday 22 June at 12pm AEST. Click here to register. You can claim CPD point if you are a CPA Australia member (must attend the duration of the webinar).
