Dave ran a successful electrical business north of Brisbane: six sparkies, three utes, and a phone that never stopped ringing.

So when his accountant showed him the year-end figures, he just stared at the page. Turnover was up 30%, but profit was down. “That can’t be right,” he said. “We’ve never worked harder.”

He was right about the second part. Everyone had worked hard. The problem was that nobody knew where the hours had gone.

Dave priced every job on gut feel. A switchboard upgrade was “half a day” and a new home fit-out was “a week”. Nobody checked. When a job ran over, the team pushed through and moved on to the next one.

At his accountant’s suggestion, Dave put a timesheet app on everyone’s phone for three months. The team grumbled, and one apprentice asked if Dave was “spying on them”.

The results surprised everyone. Once travel and trips to the wholesaler were counted, those half-day switchboard upgrades were taking nearly nine hours. One builder’s fit-outs ran two days over every time, because the site was never ready when the sparkies arrived. And Dave was spending eight hours a week on quotes he never won.

None of it was anyone’s fault. It just couldn’t be seen.

Dave raised his switchboard price, added a site-readiness clause to that builder’s contract, and started charging for detailed quotes. Within six months, profit was back where it should be, with the same team and no new hires.

The apprentice who asked about spying now checks his weekly numbers before anyone else does.

“I thought I needed another sparky,” Dave says. “What I actually needed was to know where the time was going.”

Busy isn’t the same as profitable. Timesheets show you the difference.

Need Help with your Business, Bookkeeping, Tax or SMSF requirements?

If you would like a little help, please get in touch with us for assistance. We can help with your business, bookkeeping, tax and SMSF requirements. To book an appointment, use our online booking system, give us a call on 07 3289 1700, or email us at reception@rgaaccounting.com.au.We look forward to assisting you this tax season!

Take this 25-question, 5-minute diagnostic to uncover your top 3 strengths and top 3 growth areas across 10 key scale-up factors — strategy, leadership, cash flow, and more. Click here. Get instant results. 

Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Brought to you by RGA Business and Tax Accountants. Liability Limited by a scheme approved under Professional Standards Legislation.