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Accounting for Earthmoving & Excavation

Running an excavation and earthworks business is plain hard work. While the bobcat, backhoe and hydraulic excavators do most of the 'heavy lifting' you need to contend with long hours, safety regulations and customer deadlines.

While your clients expect you to complete bobcat work, excavation, trenching, leveling, site cleans and dirt removal, it's no surprise to find the bookkeeping function often doesn’t get the attention it deserves. While GST, BAS and tax payments often represent some of the largest financial obligations for an excavation or earth moving business owner, many end up paying too much tax and incur fines for non-compliance.

Here at Velocity Accounting Group in Perth we understand what is involved in running a successful excavation and earthworks business. Apart from the usual small business compliance issues of GST, BAS, PAYG and superannuation, we can assist you with managing your cash flow and help you obtain finance for your bobcat, trencher, post hole drill and tipper truck. We’ll make sure the finance is structured for maximum tax effect and help you select the most appropriate accounting software for your business plus help you manage your payroll and sub-contractors.


As a business start-up specialist our team of accountants have helped dozens of excavation and earth moving business owners get their business off to a flying start. We offer you experience, technical tax knowledge and most importantly, an intimate understanding of your industry.

Starting a business is a bit like building a house. You need solid foundations including the right business structure, accounting software, adequate and appropriate insurances, marketing, a website and social media channels.

Your choice of business structure is critical and there are a number of different options such as sole trader, partnership, company and trust. Asset protection is a key consideration when selecting a business structure because of the high risks associated with the earth moving and excavation industry. When deciding on the right business structure you also need to take into account your family situation, forecast level of profit and your future plans regarding admission of new business partners.

Accounting software is another brick in the wall of your business foundations. Again, the wrong choice can be catastrophic because poor business records are one of the biggest causes of business failure in this country. You need up to date, accurate financial records to make informed business decisions which is why we insist your accounting software matches your business needs and level of accounting skill. Using a sophisticated double entry accounting software program without a reasonable level of accounting skill can create a 'computerised shoebox' and you also need to consider cloud accounting options. Here at Velocity Accounting Group we aim to minimise the cost of compliance for you but shoebox records defeat the purpose. For that reason, once we evaluate your business needs and skills we then train you to use the software. We support a range of accounting software programs but do have a preference for cloud based solutions like Xero where your data is stored ‘in the cloud’ rather than on your local hard drive or server. This means you have access to your financial data from anywhere, at any time, using any device including your mobile phone or tablet.

As you know, to build a house you also need the right tools. When 'constructing' your business we also use a number of tools including our start up expense checklist to identify all your potential establishment costs. It dissects your start up costs into several categories including tools, equipment, IT expenses, professional fees and marketing costs. These figures can then be transferred into a cash flow budget template to produce a projected trading statement for your first year of operations. For a builder, your van, truck or ute is arguably your most important business tool. Our Motor Vehicle Tax Guide explains the alternative methods of claiming your vehicle expenses and the distinction between a business and private trip for tradesmen. In addition, through our affiliate partners we can also assist with vehicle finance (chattel mortgage, CHP or lease) and get you fleet pricing on your new car, ute or light commercial van that could save you thousands of dollars.

We have also developed a number of practical tools to help you make the right opening moves including our start up expense checklist that will help you identify all your potential establishment costs including tools, machinery, IT expenses and marketing costs. These figures then automatically feed into a cash flow budget template to produce a forecast profit and loss for your first year of trading. We can also help you put together your business, marketing and financial plans using our in-house templates.

That’s just the beginning because as accountants we can do some financial modeling and prepare some ‘what if’ scenarios to identify your best and worst case profit scenarios. Next, using industry benchmarks we can compare the performance of your business against your competitors so you understand what is working in your business and what needs working on.


One of our biggest points of difference with traditional accounting firms is our marketing expertise. We can assist you with your branding (business name, logo and slogan) and where required, we can also help you create a corporate brochure and harness the power of social media to win more business.

Unfortunately a lot of earthmoving and excavation businesses have websites that are nothing more than electronic billboards. They simply list the who, what and where of the business. On the other hand, over the past few years we have worked with dozens of clients to help them create affordable, lead generation websites. If you need advice and direction with your website content, video production, lead magnets or calls to action we can help you.

We'll introduce you to strategies like re-marketing, social media advertising and search engine optimisation that can drive more visitors to your website. We'll make sure your website is responsive to mobile devices  (click here to check your current website) and we strive to give you a serious competitive edge in your industry. The fact is, if you aren’t using some of these marketing tools and techniques in your business then you're probably not going to reach your full profit potential.

Our unique approach is all about fast tracking your business success and the team offer you a range of accounting, taxation and business coaching services including:

  • Start-Up Business Advice for Excavation & Earth Moving Business Owners
  • Advice regarding the Purchase or Sale of your Business
  • Tools including the Start-Up Expense Checklist and Templates for a Business Plan, Cash Flow Budget, Letterhead and Business Card
  • 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 for the Bank
  • Bookkeeping and Payroll Services
  • Tax Planning Strategies
  • Assistance with your Marketing including your Branding, Corporate Brochure etc.
  • Advice and Assistance with your Website Development, Content and SEO
  • 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 your Services and Claiming Motor Vehicle Expenses
  • Recession Survival Strategies
  • Advice regarding Employee Relations and Workplace Laws
  • Business & Risk Insurances (Income Protection, Life Insurance etc.)
  • Business Succession Planning

You'll find we are more than just tax accountants. We are ‘business and profit builders’ who provide strategic advice and practical business solutions designed to give you a serious competitive edge in your industry. We work hard to understand your business and over the past few years earth moving and excavation have become a niche area within our accounting practice. If you're looking to get your business off to a flying start or need a fresh pair of eyes to look at your business, call us today.

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 and to book a time, contact us today on (08) 9250 4048. We look forward to working ON your business so it is more profitable, valuable and saleable.

Velocity Accounting - Accelerate Your Business Success