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Accounting for Electricians
As you know, running a business as a domestic or commercial electrician can be challenging. The working conditions and physical demands of the job aside, you also need to contend with long hours, emergency call outs, extensive travel, stringent industry regulations and ongoing training.
While your clients expect you to rewire their homes, crawl into confined spaces, install power points, down lights and new electrical appliances, sometimes your business bookkeeping and administration 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 electrician, many end up paying too much tax and incur fines for non-compliance.
Here at Velocity Accounting Group we understand electrical trade and having an accountant who understands the mechanics of running an electrical business can mean the difference between thriving and just surviving. Over the past two decades, Sam Hamersley and his team of accountants have mentored dozens of electricians through the various stages of their business life cycle – from start-up right through to sale. Apart from the usual small business compliance issues of GST, BAS, PAYG and superannuation, we assist electricians with the selection of software to prepare their invoices and quotes plus manage their payroll and sub-contractors. We offer you experience, technical tax knowledge and most importantly, an intimate understanding of your trade.
THINKING OF STARTING A BUSINESS AS AN ELECTRICIAN?
Starting a business is a bit like building a house. You need solid foundations that include the right business structure, the most suitable accounting software, adequate and appropriate insurances, a marketing plan including a lead generation website and various 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 building trades. When choosing a business structure you also need to take into account your family situation, your forecast level of profit and your future plans regarding admission of new business partners.
Accounting software is another foundation brick in the business wall and the wrong choice can be catastrophic. Poor financial records are one of the biggest causes of business failure in this country and up to date, accurate records let us make informedbusiness decisions. Our mission is to make sure your accounting software matches your business needs with your level of accounting skill. The wrong choice of software can lead to records that resemble a 'computerised shoebox' which conflicts with our brief of helping you reduce your bookkeeping and compliance costs. Where required, we train you to use the software to reduce your costs and frustration. 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 slot into a cash flow budget template to produce projected trading results for your first year of operations.
For an electrician, your van or ute is arguably your most important business tool and you can download our Motor Vehicle Tax Guide that 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.
To be frank, that’s just the beginning. As accountants we can do some financial modelling and prepare some ‘what if’ scenarios. This gives you an understanding of your business’ 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 the business, what isn't working and what needs working on.
MARKETING & GROWING YOUR ELECTRICAL BUSINESS
Most electricians rely on their reputation and referrals to grow their business and while these ingredients remain important, in the digital age you also need to focus on your online presence. Increasingly local searches like ‘Electrician Perth’ 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 and marketing can be the difference between boom and gloom in the digital age.
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. If you need advice and direction with your website content including video production we can help you. Not only that, if your website lacks calls to action or lead magnets we'll help you build them plus we'll introduce you to strategies like re-marketing and search engine optimization to drive more traffic to your website.
We strive to give you a serious competitive edge and if you aren’t using some of these marketing techniques your business probably won't reach its full profit potential.
We are not your average firm of accountants who just keep the score. We view the tax return as the start of the client process, not the end. To be honest, that’s just the beginning. As accountants we can do some financial modelling and prepare some ‘what if’ scenarios so you understand your best and worst case profit scenarios. Next, using industry benchmarks we can compare the performance of your business against your peers so you understand what is working in the business, what's not working and what areas need working on.
We recognise the fact that business owners want more sales, more customers and more profit so we also give you access to one of the world’s most successful marketing programs, the ‘Business Growth System’. It contains details of more than 80 breakthrough marketing strategies supported by videos, templates and checklists. Access to this ‘vault’ of resources would normally cost you $500 per month ($6,000 per annum), however, as a client of the firm you get unlimited FREE access. In addition, you also get FREE access to the ‘Grow Your Business in 5 Days’ video training course that could have a massive impact on your future business growth.
At Velocity Accounting Group we offer you a range of accounting, taxation and business coaching services including:
- Start-Up Business Advice for Electricians & Sub-Contractors
- Advice regarding the Purchase or Sale of your Electrical 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
- Bookkeeping and Payroll Services
- Income Tax Returns - Companies, Trust, Partnership, Individuals,
- 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
We are so much more than just tax accountants. We are ‘business and profit builders’ who provide strategic advice and practical business solutions that could give you a serious competitive edge. We work hard to understand your business and over the past decade electricians and trades people have become a niche area within our accounting practice. To get your electrical business off to a flying start or to take your business to the next level, contact us today.
If you're a committed and ambitious business owner looking to accelerate your 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 that could have a profound effect on your future business profits. To book a time, call us today on (08) 9250 4048 or complete your details in the box at the top of this page.