Financial advice for small plumbing business

[anita9933]

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Hello!
My husband and I run a small plumbing business in regional Queensland, for the past 9 years. We have had a few good years but usually seem to struggle. We have built a good name for ourselves and dont have trouble getting work, but really need to find a financial advisor of some sort that has had experience in our industry that could help with financial advice and possibly also our business structure as we are a partnership and wondering if it would be better change to a company.
Many thanks

[ThexArm]

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Hi, Welcome to the forum.

Congratulations on being in business for that long.

Any good accountant can give you advise on the structure of your business as well as any financial advise you need for your business.

Partnership structure may not be the best structure for your business. You probably be not claiming the benefits of running a business because of this. A company probably a good structure but would definitely need to know more about your circumstances to advise better.

Since you been in business for this long, wasn’t there an accountant you consulted in this time?

[MissSassy]

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I agree, an accountant should have no trouble getting you on track with the right structure and much more. Plenty of businesses like yours run as a Pty Ltd company and many more run under a trust, but an accountant will let you know the best option for your circumstances.

Recommendation:
http://www.irinahollander.com.au I highly recommend as a fellow FS member and small business specialist.

9 years in a small plumbing business should see you financially doing well so some simple changes should get you on track in no time.

[anita9933]

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Thankyou so much, thats what I thought too! We have spoken to our accountant twice now specifically for financial and business advice (rather than basic accounting) but really felt the information he gave us was not suited to us or our business, like taking out a large loan to pay off current loans and then invest some which we are reluctant to go into more debt. And couldnt give us any info re changing to a company either. Also alot of his advice seemed to apply to maybe large businesses in large areas rather than our small business in a regional area. Thankyou for your advice, now just to find someone how understands our business!

[ThexArm]

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That didn’t sound like a prudent financial advise.

I don’t know your complete circumstances so my advise is very general in nature.

There are couple of things that are positive in your business. 1, You have created good reputation in your area. 2, Both of you are committed in the business. So, if the income is not very good then what else can you do with your time to generate additional source of income? Since you have s good reputation, do you think you guys can add some other service? Just think outside the square. May be mowing or cleaning??? You together there are about 70 odd working hours per week. Even if you take out 10 to 15 hours for travelling and other there are still about 55 billable hours. If you can use these hours effectively then you may get additional income to pay off your debts sooner. By having another source of income you don’t have to only depend on plumbing when there is less demand for that work.

Just something to think about.

Sent from my iPhone using Tapatalk

[JustinHyde]

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Unfortunately, as with any industry, there are good accountants, average accountants and accountants who probably shouldn’t be accountants. When choosing an accountant, be mindful of the size of the firm – the larger the firm, the wider the service offering but the fees will be greater. Conversely, smaller accounting firms may not be able to provide the range of services you need but the fees should be reduced and their relationship with you will be a lot different. Any accountant that wants your business should be prepared to sit down with you – at no cost – initially and give you an overview on what they do, what sort of clients they work with and how they can help your business. It’s important you feel comfortable before signing on the dotted line.

Given the size of your business, I’d tend to look for smaller accounting firms who can value add to your business – there are a lot of accounting firms who will simply ‘do the books’ for you annually which adds no value to your business versus those who will take the time to understand you and your business and offer proactive suggestions about what you can do better. Also, be mindful that your accountant doesn’t know everything – they should be happy to refer you to those more experienced in other areas. As an example, It sounds as though you may also find it more useful speaking to a financial planner regarding your specific set of financial questions as opposed to an accountant. They can advise you more precisely about your options when it comes to debt and investment and so on.

Good luck!

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