Posted: 11 October 2024 ![Trades Package Absolute Gold!](https://www.essbiztools.com/images/zoo/blogs/advisoryservices/advisory-services-news.jpg) # Trades Package Absolute Gold! #### Advisory Services News - Issue 60 Good day! Welcome to this update on **ESS BIZTOOLS ADVISORY SERVICES NEWS.** ### **TRADES PACKAGE ABSOLUTE GOLD!** A few weeks ago, Amanda Gascoigne a well-known Accounting Industry Mentor and Coach expressed her enthusiasm for the **“Tradies Charge Out Rate Calculator**” developed by **ESS BIZTOOLS** in these words: “I love the **ESS BIZTOOLS Tradies Charge Out Rate Calculator**”. Every accountancy and bookkeeping firm normally has some tradie clients. Over the years we have talked to many Tradies and asked them how are they determine the charge out rates that they apply for the various categories of team members that they engage. You could ask your tradie clients exactly the same question and I would be very surprised if you got a different answer from them to the ones that I got which were basically – *“we look around and see what other people are charging or we take last year’s charge out rate and add a bit more to it”*. I have enquired as to what productivity percentage they are budgeting to achieve from the various team members and again I don’t get a strong response that they are utilising the concept of individual productivity percentages in the determination of charge out rates. However, when we have discussed the concept utilised by **ESS BIZTOOLS** with Tradies, we get a strong response because they understand the rationale behind the various calculations to determine charge out rates that are calculated in an attempt to ensure that the Tradies desired profit is achieved. Amanda Gascoigne indicated that there are significant opportunities to assist Tradie business operators to improve their business by proactively advising them on the calculation of charge out rates, which are linked to individual team members productivity, ultimately assisting the business to achieve their targeted profit **“The Tradies Charge Out Rate Calculator”** gives an individual trades business operator a set of charge out rates that applies to the dynamics of his/her business in terms of individual team member productivity, wages and salaries being paid, working hours, individual productivity percentage overhead expenses of the business, markup on external purchases for clients and the targeted profit for the year. This is the type of analysis that all SMEs need to receive from their Accountants so that have a set roadmap for the financial year to guide them for a range of key items including: - Labour on costs for various categories of team members - Analysis of their team relating to gross salary, hours been paid for, budgeted leave, individual productivity percentage, chargeable hour per team member - Budgeted overhead expenses for the year - Estimated purchases to be made on behalf of clients - Mark-up percentage to be applied to purchases for clients - Targeted profit for the year The **ESS BIZTOOLS Tradies Charge Out Rate Calculator** will calculate the individual charge out rates and the budgeted chargeable hours per team member required to earn the targeted profit for the year. Our members who have successfully introduced this system to their Tradie Clients have introduced the concept of the preparation of Monthly Financial Accounts and the analysis of Key Performance Indicators to monitor whether productivity percentages in line with the budget estimates are being achieved and if not enquiries can be made and if the productivity percentages are found to be unreasonable adjustments can be made so that the correction is made as soon as possible in the financial year This is real accounting services to assist your Tradie Clients to run successful businesses and to achieve their profitability targets. You can access a example of the “Tradies Charge Out Rate Calculator” by [clicking here](https://www.essbiztools.com/joomlatools-files/docman-files/165%20-%20Trades%20Industries/Form%20165-010a%20-%20Setting%20Trade%20Charge%20Out%20Rates%20Calculator%20Example.xls)Tra or you can view details at [www.essbiztools.com.au](http://www.essbiztools.com.au). If you would like to have a conversation about this service and others supplied by **ESS BIZTOOLS** please send us an email: [](https://www.essbiztools.com/javascript:/*%20This%20email%20address%20is%20being%20protected%20from%20spambots.*/)[](https://www.essbiztools.com/javascript:/*%20This%20email%20address%20is%20being%20protected%20from%20spambots.*/) and we will respond to your questions. Thank you for your interest in the **“BIZ AID by ESS BIZ TOOLS”** campaign wherein we are endeavouring to supply a component of our consolidated product packages to Accountants and Bookkeepers at a reduced subscription rate to assist you to offer an outstanding range of professional services to assist your SME clients to survive the current difficulties. If you would like a one-on-one complimentary review Zoom meeting with our Founder and Managing Director, Peter Towers please send us an email: [](https://www.essbiztools.com/javascript:/*%20This%20email%20address%20is%20being%20protected%20from%20spambots.*/)[](https://www.essbiztools.com/javascript:/*%20This%20email%20address%20is%20being%20protected%20from%20spambots.*/) #### ESS BIZTOOLS Blogs ### Recent Posts... 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