Posted: 13 August 2024 ![Delivering Advisory Services for Tradies](https://www.essbiztools.com/images/zoo/blogs/advisoryservices/advisory-services-news.jpg) # Delivering Advisory Services for Tradies #### Advisory Services News - Issue 35 **Good day!** Welcome to this update on **ESS BIZTOOLS ADVISORY SERVICES NEWS.** ### **Delivering Advisory Services for Tradies** There are thousands of Tradies businesses in Australia, and most accountants and bookkeepers have some Tradie clients. Some professional firms have specialized in offering services to Tradies firms, and in doing so, they are delivering real accounting services to their Tradie clients. Our suggestion is that you enter into an annual plan with individual Tradies clients and that the services cover: 1. Determination of Charge-Out Rates for the Year** The business owner can set the profit target for the year. Identification of the team: - Employment classification - Labour on costs - Working hours – annually - Allowance for training/supervision/other non-chargeable time - Estimated productivity percentage for individual team categories and, in some cases, individuals - Salary cost for individuals - Estimated total chargeable hours for team member categories - Estimated business overhead costs for the year. - Estimated amount of purchases to be made on behalf of clients during the year. - Markup percentage to be established on purchases for clients. **ESS BIZTOOLS** has developed the **“Tradies Charge-Out Rate Calculator,”** which some accountants/bookkeepers are successfully using to deliver regular accounting services to their Tradie clients. An accounting team member would enter this information, and the calculator will then determine the suggested individual category charge-out rates. The Tradies Charge-Out Rate Calculator will prepare a calculation based on the estimated total chargeable hours for each team member category to determine projected total income from labour services. Plus, the revenue earned from purchasing products for the Tradies clients (including the markup) Total income projected for the year Less: - Cost of labour and labour on costs for the year - Budgeted overhead expenses - Cost of products purchased for clients Total costs Projected net profit The projected net profit will be the **“Targeted Profit for the Year”** that the business owner set at the beginning of this calculation process. This type of service allows you to guide your Tradie clients on this very important task of setting charge-out rates, which suit the dynamics of your client’s Tradie business not based on rumors or overheard conversations but on the composition of your client’s team, the actual overhead costs for the business, the amount of markup on external purchases acquired for clients, and the profit target set by the business operator. 2. Business Process** You could then implement the **“52-Week Business Enhancement System”** developed by **ESS BIZTOOLS**, whereby Monthly Financial Accounts are prepared and compared to the budget estimate within the **“Tradie Charge-Out Rate Calculator**.” The productivity percentages achieved, hours worked, and other information pertaining to the business can then be reviewed to determine whether it is necessary for **“fine-tuning”** the data that has been utilized to set the **“Charge-Out Rates.”** This could be processed at the end of a month. You can now click on the webinar recording – **“Tradies Earning the Profit Target?”** [Click here](https://youtu.be/qIqa5HjCyKg). This webinar explains the total process that you could use with any number of your clients. One of our members has told us that he has over 110 Tradie clients that he is utilizing the **“Tradie Charge-Out Rate Calculator”** process for and has incorporated all aspects of the **“52-Week Of The Year Business Enhancement System”** for those clients. For the majority of these clients, his firm is preparing monthly financial accounts and for the remainder, quarterly financial accounts, together with the key performance indicators, business metrics, and comparisons to budget reports. The **“Tradies Charge-Out Rate Calculator”** is included along with a range of other product packages that you can earn fees from in the **ESS BIZTOOLS** **“Advisory Services Product Package,”** where you can take advantage of the **“Olympic Games Promotion”** discount of a monthly payment of $89.10 including GST or the **“Discounted Upfront Payment of $891 including GST”** for the 12-month subscription. You can view a summary of the composition of the **ESS BIZTOOLS** product packages for Advisory Intro, Business Advisory Services Starter, Advanced, and Financial Forecasting Packages by [clicking here](https://essbiztools.com.au/uploads/SUMMARY%20OF%20PRODUCT%20PACKAGES.docx). Want to find out more about **ESS BIZTOOLS** and how accountants can benefit from **“Delivering Advisory Services”**? Why not join us for a complimentary webinar featuring well-known accounting Industry Trainer and Mentor Amanda Gascoigne with Peter Towers – **“Delivering Fiscal Skills Improvement for SMEs”** **Wednesday 14 August 2024 at 10 AM AEST** – to register, please [click here](https://tinyurl.com/pxafbs4j). Please visit the **ESS BIZTOOLS** website at [www.essbiztools.com.au](http://www.essbiztools.com.au) to view additional information. To subscribe for **ESS BIZTOOLS** products please go to [www.essbiztools.com.au](http://www.essbiztools.com.au) – Packages and Pricing #### ESS BIZTOOLS Blogs ### Recent Posts... 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