Rollex Civil is a growing company with a busy fleet of drills, trucks and excavators. Keeping up with the accounts is a task made much easier since Brendan Lucas and his team began providing them with an outsourced accounting service.
DEMANDS ON BUSINESS
Demands on Australian small to medium businesses have never been greater. There is more red tape to comply with in most industries. Tax, BAS, payroll and other financial reporting must include far more detail. Meanwhile, the twists and turns of the global economy have put unpredictable new pressures on managing a business.
As markets fluctuate and businesses adapt, it is critical that owners and managers stay on top of the daily financial position of their business and can access current figures quickly.
Brendan has been working with Rollex Civil to streamline their accounting processes and set up financial systems that allow the owners and manager to save valuable time and easily monitor their financial position. Time save has helped Rollex Civil to focus on their core activities and grow the business.
SUCCESS AND KEEPING UP ACCOUNTING SYSTEMS
Rollex Civil is a specialist drilling company that provides horizontal directional drilling and excavation services in metropolitan Sydney, as well as regional NSW and the ACT. The company was established in 2006 and is still run by hands-on owners Roland and Samantha Collins. In fifteen years, it has gone from no employees to a large team including Operations Manager Peter Rix, as well as contractors.
With its excellent safety and project delivery record and a great client base that includes Downer, Lend Lease, Transport NSW, NBN, Fulton Hogan and QC Communications, the company was in a good position to expand and prosper. However, the realities of growth presented the company’s management team with a paradox. It meant they needed to spend more time focused on operations in the field leaving less time to manage the company’s books. Yet to successfully manage their expansion the owners needed more in-depth analysis of their finances.
Rollex Civil’s solution was to engage the professional outsourced accounting services from Brendan.
Owner Roland Collins was already familiar with Brendan as he had worked on the company’s annual tax return for a number of years. While Roland wanted the advantage of professional accounting expertise, he also wanted to be more aware of the company’s financial situation in real time, so he expanded his engagement with Brendan by bringing him on board as his outsourced accounts member.
BENEFITS OF CLOUD ACCOUNTING SYSTEMS
Rollex Civil’s new accounts system utilises cloud-based accounting including Xero, as well as Receipt Bank to easily track receipts and expenses.
Financial tracking now shows what is happening with cashflow in real time and breaks down the costs. “If you know where your money is going, you can do something about it,” says Operations Manager Peter Rix, adding, “if there any discrepancies or expenses that are not quite right, we can fix it up before the end of the month.”
Monthly reports make it easier for Peter to thoroughly review the expenses, returns and profit margins and keep the owners aware of the financial health of the business.
BENEFITS OF WORKING WITH BRENDAN
Under the outsourced accounting service arrangements, Peter liaises with an accountant from Brendan’s team. He also has access to other members of the Brendan’s team and their knowledge of business accounting and can consult them regarding tax and other matters.
Peter catches up with Brendan monthly. Brendan then holds a meeting with Sam and Roland to go through the accounts, which can be “presented to them as a one-pager”.
In conjunction with Brendan, Peter and the owners can use the monthly figures review to set realistic budgets and to stick to them.
“Brendan and his team do a great job”, says Peter. Although he still monitors the accounts Peter now finds it “very reassuring” that someone with accounting expertise is responsible for fortnightly payroll, as well as reporting and business activity statements. Peter notes that Brendan’s team members manage the back-end bookwork, tax returns and regulatory financials with professionalism. This means he doesn’t have to second guess whether they have done things right from the Tax Office’s point of view. He adds, “It’s very reassuring they are there doing it right. From a regulatory point of view, it certainly gives us a lot of comfort.”
TAKING ADVANTAGE OF NEW OPPORTUNITIES
The establishment of more efficient accounting processes has helped take the business management to the next level.
Without having to do the accounts or supervise an on-staff bookkeeper, Roland, Sam and Peter have been freed up to focus on other aspects of the business. They have also saved on staffing costs.
With all financial information readily visible in Xero at any time, it is much easier to gauge the financial status of the firm, wherever they are. It is especially useful for hands-on owner Roland, who can stay updated while he keeps on working in the field.
RECOMMENDING BRENDAN LUCAS
Peter has seen that cloud accounting can improve efficiencies, which gives businesses a significant advantage. He states, “The big difference is simple: it is the visibility of the financial status of the company.”
He would recommend outsourced accounting to other companies, saying, “It has worked very well for our business.” It is fairly common for business owner-operators who do a great job physically to not have the time or the skillsets needed for “the back-end bookwork”.
Peter rates highly the skills provided by Brendan’s team and the “fantastic service they offer”.
FUTURE OPPORTUNITIES FOR THE COMPANY
With new opportunities on the horizon, Rollex Civil is keen to be in the frame, providing specialist drilling services. With a clear picture of company cashflow and the books in the hands of expert accountants, Roland, Samantha and Peter are geared up to get the business moving in the right direction.
ABOUT BRENDAN LUCAS
Brendan works with a wide variety of small and medium businesses. His experience with business accounting allows his clients to focus on service delivery, safe in the knowledge that their decisions are backed up by easily accessible and up-to-date financial information and professional support.