Plan. Control. Grow.
At Helm Accounting, we specialize in helping people who make things. If you own a business in building and construction, engineering, or a specialist trade then we want to meet you.
We will help you plan your business and control your money so your business can grow. We want you to succeed.
We are committed to giving our clients the best solutions and advice. We are great at accounting and tax but that is just the tip of the iceberg. We keep the big picture in mind, looking at where you are now and providing you with the focus and planning to get where you want.
Whether you are just looking for help to survive the tax office requirements or you want to take your business to the next level, we are the people you need to see.
The latest from the Helm Accounting Blog
“What is markup? What markup should I use?” What an interesting question and the answer is rather simple.
Firstly, many builders and tradies confuse the term markup with gross profit (sometimes referred to as margin or gross margin). Markup is simply the factor that you apply to your estimated job costs to determine the sales price. Gross profit, on the other hand, is calculated by subtracting cost of sales (bricks and tiles) from your contract price. The gross profit percentage is equal to your gross profit divided by your contract price.
Then what is the markup that you should use? “It depends.” Each builder or tradie needs to evaluate their own circumstances to establish the markup percentage that will cover operating expenses and provide a reasonable profit.
So let’s put this into an example firstly following a step-by-step guide for identifying your target markup: