Accounting for Lawnmowing Contractors

Clearly you don’t need to be a brain surgeon to mow lawns, yet very few lawn mowing contractors seem to make a comfortable living.

As you know, running a lawn mowing business is very competitive and the statistics tell us that the average business ‘life span’ of a mowing contractor is less than two years. This is partially attributable to the fact that many lawn mowing contractors come out of a corporate environment and struggle to cope with the physical demands of the job. These baby boomer mowing contractors are burnt out inside 12 months and many people who buy a franchise or mowing round over estimate the income potential of the business. In general, we find they also under estimate the business running costs, the wear and tear on their vehicle and the importance of marketing.  

Here at Linda McGowan Pty Ltd we understand the issues and operations of a lawn mowing business. Over the past decade, Linda McGowan and her team of accountants have mentored dozens of lawn mowing contractors through the various stages of their business life cycle – from start up right through to sale of their mowing round. They bring experience, technical knowledge and most importantly, an intimate understanding of your industry to the table. Apart from the usual small business compliance issues of GST, BAS, PAYG and Superannuation we can help you:

•    evaluate the purchase of the franchise or mowing round
•    assist you with software selection
•    prepare a cash flow budget and forecasts
•    benchmark your business performance against industry averages so you know what’s working in your business and what needs working on to improve your profitability

It’s a fact that many lawn mowing contractors fail to give accounting and tax issues the attention they deserve. They make cash purchases most days and are notorious for losing the corresponding tax invoices. While GST, BAS and tax payments often represent some of the largest financial obligations for a mowing business, most trades people fail to understand their tax obligations, pay too much tax and are exposed to substantial penalties and fines for non-compliance. In many instances this leads to financial failure.

THINKING OF STARTING or BUYING A MOWING ROUND?

For independent mowing contractors we can help you with your marketing starting with your branding (business name, logo development and slogan) right through to the development of a website and social media presence. We know marketing can be the difference between success and failure in the lawn mowing game and having an accountant who understands the mechanics of your industry can potentially mean the difference between simply surviving and thriving.

As a business start-up specialist we can provide you with a comprehensive range of services and tools to get you off to a flying start. If you are looking to buy a mowing round or join a franchise we can evaluate the purchase price. We can supply you with a start up expense checklist so you identify all your potential costs including tools, trailers, mowers, vehicles, uniforms, marketing costs and franchise fees. If you need finance we can also help you prepare a business plan for the bank. You obviously need the right tools to run a successful business and this includes the right bookkeeping software and business structure.

Your vehicle is a vital part of your business and you can download our Motor Vehicle Tax Guide from the resources section of our website. It lists the alternative methods of claiming your car expenses and details the distinction between a business trip and a private trip for trades people. In addition, through one of our affiliate partners we can also assist you to obtain vehicle finance (chattel mortgage, lease etc.) and potentially get you a fleet discount on your new car, ute or light commercial van that could save you thousands of dollars. That’s just the beginning because as accountants we can also prepare some ‘what if’ financial scenarios so you know your best and worst case scenarios. This analysis will also assist you with your pricing of your lawn mowing and garden clean up services.

As a business owner we believe you want to grow your business, your profits and your wealth. For that reason we strive to help you ‘know your numbers’ and that includes understanding the 4 Ways to Grow Your Business. By identifying the key profit drivers in your lawn mowing or rubbish removal business we can talk you through profit improvement strategies and quantify the profit improvement potential in your business.

Our unique Business Accelerator Process is all about fast tracking your business success and the team of lawn mowing and rubbish removal specialists at Linda McGowan Pty Ltd offer you a range of accounting, taxation and business coaching services including:

• Start-Up Business Advice including accounting software, insurances, registration requirements, vehicle claims and finance, marketing, website design and content etc.  
• Analysis of buying a Mowing Round or Franchise compared to ‘Starting from Scratch’
• Valuing a Lawn Mowing Round
• Advice regarding the Purchase or Sale of a Lawn Mowing Round
• Spreadsheets and Tools including a Start-Up Expense Checklist, Business Plan Template, Letterhead & Business Card Template and Cash Flow Budget.
• Provide Advice and Assistance with the Establishment of Your Business Structure (sole trader, company, trust, partnership etc.) taking into account issues like Asset Protection and discount Capital Gains Tax Concessions
• Registrations for the Business Name, ABN, TFN, GST, WorkCover etc.
• Preparation of Business Plans, Cash Flow Forecasts and Profit Projections
• Accounting Software Selection and Training – Bookkeeping, Invoicing, Quotes & Payroll
• Preparation of Finance Applications for the Bank
• Preparation and Analysis of Financial Statements
• Bookkeeping and Payroll Services
• Tax Planning Strategies
• Marketing Audit including an evaluation of your branding, brochures and services menu
• Advice and Assistance with your Website Development, Content and SEO
• Wealth Creation Strategies and Financial Planning Services
• Industry Benchmarking and KPI Management
• Vehicle & Equipment Finance (Car, Ute, Trailer, Chattel Mortgage or Lease)
• Monitoring and Controlling Labour and Sub Contractor costs
• Advice & Assistance with Pricing and Claiming Motor Vehicle Costs
• Recession Survival Strategies
• Advice regarding Employee Relations and Workplace Laws
• Business & Risk Insurances
• Business Succession Planning

We are so much more than just tax Accountants. We are business and profit builders who genuinely care about your business success and understand your industry. We provide strategies and solutions for lawn mowing contractors and rubbish removalists who have both become a niche area within our accounting practice.

If you want to get your lawn mowing or rubbish removal business off to a flying start or you want to grow your existing business, contact us today.