Protect Your Profit and Catch Problems Before They Grow

Accredited Supplier, Sones Accountancy Services provides advice on how to spot and fix hidden profit leaks before it’s too late.

In the landscaping and trades world, you are often so focussed on getting the job done that you do not always have time to stop and check whether the job is making money.

The problem is that most business owners do not realise they have a leaky bucket until the water is already gone. By then, the damage is done, as the profit is down, tax bills still need to be paid, and cash flow becomes a daily struggle.

This is how to stay ahead of the curve and spot the leaks early, so you can plug them before they cost you.

Check Job Profitability Every Time

It is easy to assume a job made money because there is cash in the bank. However, materials, labour, and overheads add up fast, and without checking the real numbers, you might be undercharging without realising.

After each job, look at how your quote compares with actual costs. Tools like Xero Projects or a simple spreadsheet work well. Compare:

• Labour hours with budget
• Materials ordered with used
• Profit margin achieved with target

This helps you learn what is working and where you are bleeding profit.

Understand the Difference Between Revenue and Profit

Bringing in £40,000 in a month sounds great, but if £39,000 went out, that is not a win.

Regularly review your profit and loss report and focus on:

• Gross Profit (revenue minus direct job costs)
• Net Profit (what is left after overheads)

Use percentage margins as well as monetary amounts to spot trends over time. If gross profit starts dipping, that is your first red flag.

Keep a Tight Focus on Overheads

Office rent, software subscriptions, fuel, van insurance all add up. A small creep in expenses across the board can quietly kill your profit.  You should review overheads quarterly and focus on whether there are any services that you are not using, if costs are increasing faster than revenue and if you can negotiate better rates.

Don’t Wait for Year-End to Check the Numbers

By the time your year-end accounts are finalised, it is too late to change the outcome. Instead, review your numbers monthly or even weekly.  Use management accounts to track revenue compared with budget, gross profit percentage, overheads and net profit.

If something looks wrong, act early to adjust pricing, reduce costs, or shift focus.

The bottom line is that your numbers are full of clues if you know where to look.  At Sones Accountancy Services, we help landscapers and trades stay in control, spot issues early, and keep profits strong.

If you need help plugging the leaks, give us a call or book a free, no obligation chat by clicking this link: https://sonesaccountancy.co.uk/calendly-15-minute-call