QBCC Annual reporting is now open. If you are in the construction industry, it is important to start looking at your figures now, to ensure your business is compliant in preparation for the 31 December deadline. There is undeniable uncertainty within the industry right now due to a number of pressures, many of which are outside of your control.
The reason we highly recommend you should start preparing for the QBCC annual reporting deadline now, is because we have been seeing issues which are negatively impacting our clients’ numbers. The issues we see affecting the numbers and therefore QBCC financial requirements this year are:
1.Delay in supply is delaying build schedules, which is causing a delay in completing stages
It is important that you are planning your workflow and where possible using the goodwill you have built with your suppliers over the years to continue to deliver supply. We are seeing many builders unable to finalise stages and issue progress claims, which is beginning to slow cashflow in their businesses.
2. Significant price rises
Review your contracts as to what options you have. It is then recommended you discuss these options with your clients.
3. Measure your quote to the actuals
It is important you have adequate systems in place to work out the difference between your anticipated costs and actual costs for all jobs. We are seeing a lot of builders who think they are achieving their set profit margins, but at completion are falling short. Often because people are so busy they don’t notice the downturn for a period of time, so it is important you are reviewing your actual job profit and loss at the end of all jobs.
Have the conversation early to ensure that you are sign of from the customer and are charging for variations when they occur. Variations can have a large impact on your profitability. It is vital that discussions and agreements around variations are in writing.
As experienced QBCC Specialists we know how important your licence is to your business success and financial wellbeing. Learn more about our specialist services for the building and construction industry on our QBCC Specialists page.
Staying Compliant and Meeting Your Obligations
There are two types of QBCC Reporting. Depending on what category your company or business falls under, you may need to complete one or both types of reporting in order to remain compliant with QBCC and retain your Licence.
- All QBCC Licence holders must complete Annual Reporting each year
- Does not need to be signed off by an accountant
- Includes Financial Statements (for higher categories) and an Annual Reporting Form
- Categories 1-3 and 4-7 have two different Annual Reporting Forms
MFR (Minimum Financial Requirements)
- Required if your Maximum Revenue needs adjusting (you must not exceed for Maximum Revenue by more than 10% each financial year)
- If your Net Tangible Asset position decreases by more than 20% for Cat 4-7 or 30% for all other Licencees
- Must Be lodged by an accountant
- Clarifies the licensee’s financial position
- Not part of Annual Reporting
For an up-to-date guide on Annual Financial Reporting, visit QBCC Guide to Financial Reporting
Here at MJJ Accounting, we specialise in QBCC Accounting and Compliance. If you need help with your Annual Reporting obligations, please get in touch with us by email or phone us on 07 5451 1118.