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Accounting for Builders

Running a business as a builder is hard work. The physical challenges aside, you need planning, scheduling and financial skills to manage your cash flow and any sub-contractors. The long hours, travel and regulations are all challenges you face and they probably explain why builders and trades people are notorious for neglecting their bookkeeping and administration duties. While GST, BAS and tax payments often represent some of the largest financial obligations for a self employed builder, many end up paying too much tax and incur fines for non-compliance.

Here at Freedom Accounting Group we understand the building industry, from plans to lock up to sale. Make no mistake, having an accountant who understands the mechanics of the building industry can mean the difference between just surviving and potentially thriving. Apart from the usual small business compliance issues of GST, BAS, PAYG and superannuation, we assist clients with managing their cash flow and selecting the right software to prepare quotes, invoices and manage their staff and apprentices. Over the past decade we have mentored dozens of builders, plumbers, electricians and carpenters through the various stages of their business life cycle, from start up right through to sale. We offer you experience, technical tax knowledge and most importantly, an intimate understanding of the building trades.


Starting a building business is a bit like building a house. You need solid foundations and the corner stone of the business is your taxation structure. It is a critical business decision and there are a number of options when it comes to business structures including sole trader, partnership, company and trust. Because of the risks associated with the building industry, asset protection is a key consideration. Before making a recommendation regarding your business structure.we sit down with you to discuss your family situation, forecast level of profits and likelyhood of admitting new business partners in the future.

Accounting software selection is another brick in the foundation wall. Again, the wrong choice can be disasterous which is why we insist the software matches your business needs with your level of accounting skill. If you use a sophisticated double entry accounting software program without intermediate accounting skills your records will be nothing more than a 'computerised shoebox'. In turn, this will defeat our purpose of minimising your cost of compliance. Poor records are one of the biggest causes of business failure and you need up to date, accurate financial records to make informed business decisions. We will train you to use the right software to minimise your compliance costs.

As you know, to build the frame for a house you also need tools. When constructing your business we can provide you with a number of tools including our start up expense checklist to help you identify all your potential establishment costs. It breaks up your start up expenditure into categories including tools, equipment, IT expenses and marketing costs. These figures then automatically feed into a cash flow budget template to project your figures for the first year of trading. For a builder, your van, truck or ute is arguably your most important business tool. You can download our Motor Vehicle Tax Guide from the resources section of our website to learn more about 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 or lease) and get you fleet discount pricing on your new car, ute or light commercial van that could save you thousands of dollars.

One of our biggest points of difference with traditional accounting firms is our marketing expertise. We can assist you with your branding and offer you advice regarding your website design and content. If required, we can also help you create a corporate brochure and harness the power of social media to win more business. We are not your typical accounting firm who see the tax return as the end of the client process. 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 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 and what needs working on.

Our unique business approach is all about fast tracking your business success and the team of building trades specialists at Freedom Accounting Group offer you a range of accounting, taxation and business coaching services including:

  • Start-Up Business Advice for Builders
  • 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
  • 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 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 genuinely care about the success of your building business. We service the needs of a number of builders and related trades from all around Australia and offer you strategies to grow your business, your profits and your wealth. Over the past decade builders, plumbers, carpenters and electricians have become a real niche within our accounting practice and if you’re looking to get your building business off to a flying start or want to grow your existing business, contact us today on (02) 6021 0335.

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'll get practical business, tax, marketing and financial advice designed to help you build your business and grow your wealth. To book a time, call us today on (02) 6021 0335 or complete your details in the box at the top of this page.

Freedom Accounting Group - Unlock Your Potential