“Cash Flow” are two very important words we have found to worry most businesses, especially in the building & construction industry regardless of your scale of economy. Whether you’re expanding your business or funding a development project, the magic words have always been “Cash Flow”.

Silver Peacock helped many small to medium business enterprises in the construction industry, medical & healthcare  & Tradesman by identifying and measuring cost drivers that have an influence on and impact the business cash flow.

Understanding and controlling the various cost drivers in the business can help you make a smarter business decision that will accelerate your cash flow. 

As a business operating in a competitive environment, it’s important to understand the cost drivers that impact your cash flow, some cost drivers are quantitative in nature others are qualitative.

Some common areas of struggle for construction businesses are:

• Timelines: It’s important to work within project timelines and deadlines, if the project takes longer to complete, naturally this will reflect in your profits;
• Interest rates: It doesn’t take a genius to figure out that fluctuation of interest rates will affect your holding costs, particularly mortgage repayment;
• GST Implication: Understand your obligations so you can make the best decisions, for example, GST implication on property acquisition or GST on construction costs;
• Insurances: Most builders struggle with obtaining the appropriate coverage of insurance for the project. Likewise, it’s important that your accounts are compliant with the home warranty insurance requirements;
• Technology: Having a streamlined system that allows you to invoice before you leave the job site means you can get paid quicker. Our accountants for tradies can assist you with the appropriate business automation;

It’s not magic, every business has its unique cost drivers that impact its cash flow. Our Sydney Based Expert Accountants and Tax Specialists who worked with developers, builders, architects, engineers, and many other tradies have over time developed and adopted strategies that helped businesses trace costs to the relevant cost driver for example the cost driver of labour cost is labour hours.

What does it really mean to be the leading tradies accountant in Australia?

It means more money in your back pocket.
It means less tax.
It means a streamlined business which enables you to do exactly what you want your business to do. Want growth, we’ll setup the perfect structure and support system for you.
Want work/life balance? Our tradies accountants can advise you of system automation and payroll solutions to let you get back to what matters.

Here’s how Silver Peacock can help you steer the business to success: