As tradies accountants, we would like to help you keep more money in your pocket and make more even in the middle of a crisis. What are Financial Management Processes? FMPs are ways to identify the costs and expenses of a project, get approvals and get payments done. Make sure you make no errors in your FMP that can affect your job costing. The results you get from your game plan influence the budget, decisions and direction of your trade business.
Cash flow for tradies
Make sure people are working where they should and you’re not wasting resources by putting a correct person in the wrong seat. Don’t force your team to do administration work when they can focus on the operations of your trade business.
Make sure your game plan is realistic and you rely on a single source of information to help you create budgets, plans and make logical decisions. Control your financial processes carefully so you get an eagle’s eye view of the trade business. Direct your trade business based on real figures and not just guess work.
Use the right management system for your trade business where you can store all your business data with reduced risk of having incorrect information. Multiple systems increase the risk of error. Connect all your financial processes in a single accounting software system that records all data from inquiry to profit. There are many software options like Xero, MYOB, Buildertrend or Quickbooks.
Organise your expenses through cost codes to manage your cash easily. This helps in dividing costs into specified categories to give you a clearer understanding of the cost to do a certain work. This is different from guess work. If you use a software like Buildertrend, the Estimates tool can help you prioritise cost codes so you can track your business expenses and categorise them. It promotes finance transparency to all users. Use this tool and see where your cash flow is bleeding so you can fix it fast.
With all these, you need to encourage collaboration within your team through a software solution that administers, tracks and streamlines communication. Do this where all your trade business data are. Your tradies accountant can help you work out the costs and benefits of setting this up.
As you look for different ways to grow and improve your business, seeking professional advice could prove to be an important and helpful decision.
You can click here to speak to a business, accounting and bookkeeping firm. We also offer hospitality business consultation and mortgage services. We will give you a call to know more about your needs. We will explain to you how we can improve your business.
We would love to help you formulate investment strategies and streamline your processes to take your business to the next level. Our goal is to help you grow your business, find ways to invest more and increase your productivity.
Sky Accountants Ballarat
Phone: 1300 328 855
Office Address: 902 Howitt Street, Wendouree, Victoria 3355, Australia
Postal Address: PO Box 2234, Bakery Hill, Victoria 3354
Sky Accountants Gisborne & Macedon Ranges
Phone: 03 97444522
Office Address: 45 Hamilton Street, Gisborne, Victoria 3437, Australia
Postal Address: PO Box 270 Gisborne Victoria 3437