Accountant for Demolition & Asbestos Removal
Demolishing buildings and structures is not only physically demanding, it’s a dangerous with the presence of asbestos, lead based paint fumes and dust. It’s a competitive industry and safety is critical as you are exposed to hazardous waste in the soil as well as construction materials like roofing, walls, cladding, piping, tiling and insulation. The safety regulations are onerous as are the compliance requirements around waste management, chemical monitoring and potential fire hazards.
While the public perceive the demolition and wrecking industry to be ‘crash and bash’, the truth is, strip outs can be a delicate operation. You may need to carefully extract building materials to recycle including bricks, steel, timber, lights and windows. You need the right manual tools plus mechanical equipment such as bulldozers, excavators, heavy haulage floats, bin trucks and backhoes.
If you run an industrial or residential demolition business you need to carefully monitor your contractual arrangements, regulations and of course, legislative obligations. If you’re removing asbestos there are tracking and reporting systems to ensure full removal and appropriate treatment. There is pressure to meet deadlines and insurance premiums are
Over the past twenty years Des Deckker and the team at Owen & Peach have serviced the accounting, tax and financial needs of a number of demolition and wrecking industry participants. They have also earned a reputation as tax specialists in the asbestos removal industry. In many instances, Des, Rafi and the team have guided clients in these industries through the various stages of the business life cycle, from start-up right through to the sale of their business.
Apart from providing advice and assistance with the usual GST, BAS, PAYG and superannuation compliance issues, they will advise you on the most appropriate tax structure for your business. Part of our client brief includes helping you grow your wealth and a number of our demolition and wrecking clients also have a self-managed superannuation fund (SMSF) built into their tax structure. If you want to know more about establishing a SMSF download our e-booklet, Thinking of Starting a SMSF from the resources section of our website.
STARTING A DEMOLITION, WRECKING OR ASBESTOS REMOVAL BUSINESS
Having mentored hundreds of clients through the start-up phase of their business, we have earned a reputation as business start-up specialists. If you are looking to start a demolition or wrecking business, or buy into an existing asbestos removal operation, there are numerous issues to consider. These include your business structure, tax registrations, insurances, accounting software and of course, finance. As business advisors we can assist you in all of these areas plus provide advice on HR matters, payroll and the preparation of a business plan and cash flow budget.
The team at Owen & Peach have a track record of getting businesses off to a flying start and offer you experience, technical tax knowledge and most importantly, an intimate understanding of the demolition, wrecking and asbestos removal industries.
Starting a business is a bit like building a house and you need solid foundations. In a business sense these include the right tax structure, accounting software, insurances and marketing. Your choice of business structure is critical and there are a number of different options such as sole trader, partnership, company and trust. When it comes to selecting the most appropriate tax structure for your business we always recommend you ‘start with the end in mind' because Australian tax laws are complex and changing your business structure at some point in the future can trigger a capital gains tax event. Whenever we provide advice on business structures we always take into account issues like:
- Minimisation of Income Tax
- Maximize Asset Protection
- Allow for the admission of New Business Partners or Investors
- Comply with all Legal Requirements and Industry Guidelines
- Future entitlement to Discount Capital Gains Tax Concessions
- The Risk Profile of Your Industry
It's fair to say, in the demolition, wrecking and asbestos removal industries, your choice of tax structure is one of the most important decisions you have to make in the start-up phase. Based on the relative importance of each of the above issues, you’ll probably find your business structure is some sort of a compromise.
Your choice of accounting software is another key decision because up to date, accurate financial records let you to make informed business decisions. The wrong choice of software can prove catastrophic and you need to match your business needs with your level of accounting skill otherwise you could end up producing ‘computerised shoebox’ records. This can cause frustration and extra fees which conflicts with our mission of helping you slash the cost of bookkeeping and tax compliance. Here at Owen & Peach, we want to be your accountants and business advisors, not an expensive bookkeeping service. You’ll find we support a range of software options but do have a preference for cloud based solutions like Xero, MYOB Essentials and QuickBooks Online because of their flexibility.
To build a house you also need the right tools and when 'constructing' your new business we have developed a number of tools including a start-up expense checklist broken down into various categories including:
- Machinery, tools and equipment
- Professional advice and software
- Information technology costs
- Marketing including a website, branding and signage
- Vehicle costs
This checklist will help you identify all your potential establishment costs and these figures then filter through to our cash flow budget template and allow us to produce a projected profit and loss statement for your first year of trading. These reports can also tuck neatly into our business plan template that is designed to help you secure funding from external sources like a bank.
Our business start-up checklist is another useful tool and through our affiliate partners we can also assist you to obtain vehicle and equipment finance (chattel mortgage, CHP or lease) and get you fleet pricing on your new car that could save you thousands of dollars. Through another affiliate partner we can also help you source funds to finance your business purchase.
If you're starting a demolition or asbestos removal business you don't need to reinvent the wheel as we have all the tools and resources to
help you get off to a flying start. We view the tax return as the start of the client process not the end and we can also do some financial
modelling to quantify your likely financial outcomes.
MARKETING YOUR DEMOLITION BUSINESS
For business owners in the demolition and wrecking industry, your marketing can be the difference between doom, gloom and boom. Historically, most demolition and asbestos removal business owners have relied on their reputation and referrals to grow their business. While these ingredients remain important, you need to shift your marketing focus online. Increasingly local searches like ‘Demolition business Melbourne’ 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 is your 'online shopfront' and silent sales person working 24/7 to promote your business.
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 business. Over the past few years we have worked with dozens of clients to help them create affordable, responsive, lead generation websites. We can provide advice and guidance with your website content including video production and if your website lacks calls to action or lead magnets we'll help you build them. In addition, we'll introduce you to strategies like re-marketing and search engine optimization to drive more traffic to your website.
The marketing process begins with your branding and we have worked through the branding process with clients to make sure it resonates with their target market. Using some online resources and freelance services we can you develop your logo and business stationery.
Our team offer you a range of accounting, taxation and business coaching services including:
- Start-Up Business Advice for Demolition and Asbestos Removal Operators
- Advice and Establishment of Your Business Structure
- Advice & Assistance with the Purchase or Sale of your Wrecking Business
- Spreadsheets and Tools including a Start Up Expense Checklist
- Tax & Business Registrations including your ABN, TFN, GST, WorkCover etc.
- Preparation of a Business Plan, Cash Flow Forecast and Profit Projections
- Accounting Software Selection and Training - Bookkeeping, Invoicing, Payroll etc.
- Preparation of Finance Applications for Banking Institutions
- Advice Regarding your Commercial Lease
- Preparation and Analysis of Financial Statements
- Bookkeeping and Payroll Services
- Income Tax Returns and Tax Planning Strategies
- Industry Benchmarking and KPI Management
- Marketing Advice including branding, brochures, website and social media strategies
- Wealth Creation Strategies - Self Managed Superannuation & Negative
- Vehicle & Equipment Finance (Including access to Fleet Pricing on New Cars)
- Advice regarding Employee Relations and Workplace Laws
- Advice regarding Claiming your Vehicle Costs
- Business & Risk Insurances
- Business Succession Planning
If you’re looking to get the right advice when starting, buying or developing your business, contact us today. 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 impact on your bottom line. To book a time, contact us today on (03) 9509 0188 or complete your details in the box at the top of this page. Let's get to work ON your business so it is more profitable, valuable and saleable.