Virtual CFO Service for Trades & Construction Businesses
At Next Level Accountants, our Virtual CFO Service empowers trades and construction businesses in Geelong to maximize profits and streamline cash flow. With over 15 years of specialized experience, we pinpoint financial inefficiencies and deliver tailored strategies to help you achieve the “25/10 Rule” – paying yourself $2,500 weekly while maintaining a 10% profit margin.
Let us help YOU navigate your business towards success with our Virtual CFO Services. Book a Discovery Call today! How We Drive Your Success
Our expert Virtual CFOs analyze your operations to uncover hidden losses and boost profitability. Here are two examples of how we transform your business:1. Optimizing Job Costing for Higher Profits
We dive deep into your job costing processes to identify underperforming areas. For example, we analyze labor, material, and overhead costs per project to spot inefficiencies, such as overpaying for materials or underquoting labor hours. By refining your costing system, we recommend pricing adjustments and cost-saving measures to ensure every project aligns with the “25/10 Rule.”- Improved Materials Margin: By addressing material wastage through adjusted mark-ups, we increase monthly revenue by approximately $3,000, directly boosting project profitability.
- Enhanced Pricing Accuracy: Correcting underquoted labor hours lifts project pricing by 5-10%, adding around $4,000 to monthly revenue while meeting the 10% profit target.
- Stronger Cash Flow: These improvements generate an estimated $6,000 in additional monthly cash flow, equating to $72,000 annually.
2. Streamlining Project Scheduling for Efficiency
For a plumbing contractor juggling multiple jobs, we optimize project scheduling to reduce downtime and accelerate cash flow. For instance, we identified that scheduling two large commercial projects concurrently caused equipment and staff overlaps, leading to delays and idle time. By staggering high-resource projects and prioritizing high-margin residential jobs (e.g., bathroom renovations with 15% margins), we enhance efficiency. We also implement milestone-based invoicing to secure payments at key project stages, such as after plumbing rough-ins.- Cost Savings: Reducing crew downtime and overtime saves $2,000 monthly in labor costs.
- Faster Cash Flow: Milestone invoicing brings in $10,000 earlier per large project, improving liquidity for material costs.
- Higher Profitability: Prioritizing high-margin jobs raises average project margins from 8% to 12%, adding approximately $5,000 in monthly profits.
