Are You Making a Profit on Every Project?

You carefully price each project, calculating your labour rate, applying a fair markup to materials, and ensuring your pricing stays competitive. However, the real question is: do you know the profit each project makes?

Many business owners in the landscaping, trades, and construction industries do not track their project profitability in detail. You might assume your pricing is fine until year-end comes around and there is less left in the bank than expected.

Without tracking job-by-job profit, it is impossible to know whether your pricing model is working. You could be undercharging, overspending on materials, or losing money on labour without realising it.

Start Tracking Your Project Profitability

If you are using accounting software such as Xero or QuickBooks, you have the tools you need:

·         In Xero, use Tracking Categories.

·         In QuickBooks, set up Projects or Classes.

These features let you tag sales and expenses to specific jobs or teams. Once set up, you can run a Profit & Loss report by project to instantly see what is making money and what is not.

When you review these reports regularly, you will spot problems early. You will see the types of work that are most profitable and where your margins are slipping. This insight helps you refine your pricing, improve efficiency, and increase profitability across the board.

Know Your Numbers to Take Control

Knowing your numbers does not mean becoming an accountant. It means understanding what your reports are telling you so you can make better, faster business decisions based on facts, not guesswork.

If you have ever been concerned about cash flow or paying your next tax bill, you are not alone. The good news is that you can fix it by learning how to read and use your numbers to guide your business.

We are about to launch our new ‘Know Your Numbers’ programme, a practical, pre-recorded course with six bite-sized modules designed to take you from financial stress to confidence and control.

If you are interested in joining the waiting list, please click the link below:

https://mailchi.mp/5031d5b6f559/know-your-numbers-waitlist

Take the first step to understanding your numbers and making every project truly profitable.