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Accounting for Plumbers
As you know, running a domestic, commercial or industrial plumbing business can be challenging. Apart from the working conditions and
physical demands of the job you also need to contend with long hours, emergency call outs, extensive travel, heavy regulation and ongoing
While your customers expect you to unblock pipes and toilets, cut tree roots, fix burst pipes and replace hot water services – bookkeeping and administration often don’t get the attention they deserve. While GST, BAS and tax payments often represent some of the largest financial obligations for a self employed plumber, many end up paying too much tax and incur fines for non-compliance.
Here at Nexus Accountants we understand the plumbing industry and having an accountant who understands the mechanics of the trade can mean the difference between thriving and just surviving. Apart from the usual small business compliance issues of GST, BAS, PAYG and superannuation, we assist clients with managing their cash flow and selecting the right software to prepare quotes, invoices and manage their staff and apprentices. Over the years, Domenic Tempone and his team of accountants have mentored dozens of plumbers through the various stages of their business life cycle – from start up right through to sale. We offer you experience, technical tax knowledge and most importantly, an intimate understanding of your industry.
THINKING OF STARTING A PLUMBING BUSINESS?
We are recognised as business start-up specialists and if you are looking to start a plumbing business or buy an existing plumbing operation, there are numerous issues to consider. There is your business structure, tax registrations, insurances, tools, software, your vehicle plus finance. As business advisors we can assist you in all of these areas plus provide advice on HR matters, payroll and the preparation of a business plan.
Over the past two decades our team of accountants have helped dozens of plumbers and electricians get their business off to a flying start. We offer you experience, technical tax knowledge and most importantly, an intimate understanding of the building trades.
Starting a business is a bit like building a house and it all starts with solid foundations. In a business sense these include the right tax structure, accounting software, insurances, a marketing plan, website and social media channels. Your choice of business structure is critical and there are a number of different options including sole trader, company, partnership or trust. When selecting a business structure, asset protection is a key consideration as well as your family situation, forecast level of profit, your future plans to admit new business partners and eligibility for discount capital gains tax concessions.
Your choice of accounting software is another brick in your business foundations and up to date, accurate financial records let you make informed business decisions. The wrong choice can be catastrophic and poor financial records are one of the biggest causes of business failure for trades people. Your software needs to match your business needs with your level of accounting skill otherwise you could end up producing what we describe as 'computerised shoebox' records. One of our priorities is to help you cut the cost of compliance which in some cases includes training you to use the software. While we support a number of programs we have a strong 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 broken down into various categories including:
- tools and equipment
- professional advice and software
- information technology costs
- marketing and signage
- vehicle and trailer costs
These figures then slot into a cash flow budget template that then let us produce a forecast of your first year's trading results. If you need a vehicle in your business we can assist you with finance by chattel mortgage or lease through one of our affiliate partners and you can also access fleet pricing on your new car, ute or light commercial van that could save you thousands of dollars. For a plumber, your vehicle is arguably your most important business tool and you can learn more about the alternative methods of claiming your car expenses and the distinction between a business and private trip for plumbers by downloading our 'Motor Vehicle Tax Guide' from the resources section of our website.
Through an affiliate partner we can also help you source funds to finance your business purchase, equipment or franchise fee (if applicable). Pricing is absolutely vital to the success of your business and we can help you do some price modelling plus we use benchmarks to compare your business performance against your peers so you know what is working in your business and what needs working on.
MARKETING YOUR PLUMBING BUSINESS
For small business owners, your marketing can be the difference between gloom, doom and boom.
Most trades people 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 ‘Plumber Malvern’ 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 is your silent sales person working 24/7 to promote your business.
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 that are responsive to smart phones and tablets. We can provide advice and guidance with your website content including video production and if your website lacks calls to action or lead magnets we'll help you build them. In addition, 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.
Our role includes helping you understand the Four Ways to Grow A Business and in the process, identify the key profit drivers in your business. We can talk you through various profit improvement strategies and even quantify the profit improvement potential in your business. Our role is to make sure you don't leave any profit on the table.
The team of plumbing specialists at Nexus Accountants offer you a range of accounting, taxation and business coaching services including:
- Business Start Up Advice for Plumbers & Gas Fitters
- Advice regarding the Purchase or Sale of a Plumbing Business
- Tools like the Start-Up Expense Checklist and Templates for a Business Plan and Cash Flow Budget
- 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
- Income Tax Returns and Tax Planning Strategies
- 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 and Claiming Vehicle Costs
- 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 genuinely care about the success of your plumbing business. We service the accounting needs of a number of plumbers from all around Australia and offer you strategies to grow your business, your profits and your wealth. Over the past decade plumbers have become a niche area within our accounting practice and if you’re looking to get your plumbing business off to a flying start or want to grow your existing business, contact us today on (03) 9500 8666.
If you're a committed and ambitious business owner looking to accelerate your business success we invite you to book a FREE, one hour introductory consultation to discuss your business needs. You can expect 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 or complete your details in the box at the top of this page