We understand that you didn’t become a plumber so you could spend all your time worrying about tax, CIS, cashflow, VAT, company structure and everything else that comes with being a tradesmen.
At a basic level we help you with your year end accountants and tax returns, however, unlike generalist accountants, we help you to plan for your future and grow your plumbing business.
While it's not always the funnest part of running a business, properly accounting for the business activities of a plumbing operation is important in order to gauge financial performance and meet tax reporting requirements. A plumbing business can have many transactions, be asset-intensive and experience high labor costs -- proper accounting can keep your business from going underwater.
Plumbers have experienced increasing competition over the last 2 years, with lowest prices often sought by consumers. It is critical to stay true to yourself, and keep the quality of workmanship high, as well as remaining competitive.
Hillyer Riches Accountants & Advisors can help assist your plumbing business and your plumbers that work with you through implementing technology that will streamline processes and make your business more efficient, keeping customers happy with price, and maintaining a quality service.
The lifeblood of a plumber comes in the form of revenue received from customers. If your business offers services upfront and then bills customers later, it is important that you keep accurate records and follow up with non-paying customers. While many business have the luxury of running a credit check on a potential customer, many home repairs simply can't wait for this to come back; as such, plumbers must be extra diligent on the collection end. If a customer has an outstanding past-due balance, it may be in your best interest to refuse service until the past-due bill is paid.
Accounting for expenses in a plumbing business comes down to two main categories: parts and labor. When purchasing parts for customer repairs, it is important to accurately record the price paid for the part and where the part was purchased. This allows the plumber to charge the customer appropriately for the part and also provides evidence of a business expense when tax time rolls around. As an extra bonus, the prices of frequently used parts can be tracked from different vendors, and you may be able to manage the cost of parts downward throughout the year.
As far as labor is concerned, a one-plumber shop has it fairly easy, as it is easy to track the time of one individual. However, as more plumbers and journeyman are employed, it is important to accurately record time via time cards and assign these costs to the jobs that the employees are responsible for. This allows the business owner or manager to examine which employees are the most productive and also provides evidence of business expenses when calculating payroll and other business taxes.
The Balance Sheet
Most plumbing businesses have a fairly simple balance sheet. On the asset side, plumbers should take care to keep accurate records of accounts receivable to aid collection and detailed lists of tools and other assets for ease in calculation of depreciation. For many small businesses, if certain requirements are met, business owners are entitled to preferential tax treatment for asset purchases; however, in order to take advantage of these treatments purchase records must be kept. Liabilities are usually minor and rarely consist of more than trade payables and bank loans. As such, just making sure to record everything should get you by.
For an easy guide on expenses you can claim at tax time read our blog on 34 Tips On Small Business Tax Deductions And What To Claim.
Services we can assist your plumbing business in are:
- ABN Registrations
- Business Name Registrations
- GST Registrations
- New Business advice/Startup advice
- Purchasing or Selling a business
- Business Structures for plumbers
- Asset Protection
- Strategic Planning & Management Accounting
- Salary Packaging
- Budgetting / Cashflow Forecasting for plumbers
- Financial Statements
- Tax Returns
- Fringe Benefits Tax Returns
- Payroll Tax Returns
- Managing loans by shareholders and directors from your company
- Objections to ATO assessments
- Planning for retirement
- Tax Planning and tax advice
- Payroll setup, payg summaries and statement
- Record Keeping for plumbers
- Small Business Tax Concessions
A Holistic Approach to Tax Accounting and Business Advisory for Plumbers
The first action we take is to move your accounts and record keeping to a digital platform. There are plenty of solutions available for this and it means that not only can you instantly access your financial information no matter where you are, it instantly reduces your costs.
It saves you time, it eliminates the needs to clutter the dash and your office with all of your receipts. Going digital reduces your paperwork, streamlines tax and VAT calculations and submissions, makes bookkeeping a breeze and dramatically reduces your stress.
We understand your plumbing business and work with tradesmen just like you all over the country. We know how to create systems and processes in your business that will give you more free time to spend with your family or simply relaxing after a hard days graft.
We’ll start with analysing your current business systems and processes and then get you and any employees trained on the new technology. Bookkeeping will become automated and you can spend more time on making your business succeed.
Grow Your Business
Unlike most generalist accountants we want to be involved in your business – and to help you to grow it.
We will work with you to identify business goals, construct a step-by-step plan to follow and have regular meetings with you to measure progress and to make adjustments.
We at Hillyer Riches Tax Accountants in Caulfield wish to be your one stop shop for all types of accounting services – be it general accounting, taxation, business advisory or other financial services. We enjoy partnering with businesses and assisting them on the path to sustained financial growth. Apart from cost effectiveness and timely completion of projects, we are known to stay true to good, ethically sound practices. So, if you are looking for accounting experts for plumbers in Melbourne, you now know where you need to go!
With almost 30 years in business, we have the expertise and know-how to really help you reach your goals in your plumbing business. Whether you are a plumber starting up for the first time, or a plumber that has a fully established plumbing business, our accountants in Melbourne can help you, contact us for further information.