Profitability Planning:
A Plan Built From Your Pipeline, Not Last Year Plus a Bit
Most construction firms plan the year by taking last year’s turnover and adding a percentage, which falls apart the moment one large contract lands in a different month or not at all. We build your plan from what’s actually signed, tendered, and likely to convert, with a target margin set for each type of work you do, so growth means more profit, not just more turnover.
- Cash Flow Specialists
- Built for Growing Contractors
£3.1m+
CIS Recovered
100 %
HMRC & MTD Ready
50+
Five-Star Reviews
Construction
Tax EXPERTS
Fixed Fee
No hidden charges
HMRC Compliance
Who We Are
Accountants who tell you which work to turn down, not just which to chase
Firms come to us having doubled turnover in three years with less money in the bank than when they started, because growth without margin loses money faster than standing still. We build your plan around real margin history by work type, so you know exactly what new build, refurbishment, or day rate work actually returns once overheads are covered.
A target margin set separately for each type of work you do.
A break-even position, so you know the point below which the year stops paying for itself
Holding the Year Against the Plan
A plan only works if it gets checked before the year closes, not after
Most firms discover a bad year nine months after it started, once the accounts finally arrive and the figure is already history. We deliver monthly management figures against your plan and reforecast quarterly as contracts move, so you can see where you’re ahead or behind while there’s still time to act on it
Working Out What Overheads Really Cost
A turnover target means nothing until you know your true overhead base
The yard, the office, insurance, and admin staff have to be paid for out of gross margin before any profit appears, and many firms only price for the materials and labour on site while ignoring what’s sitting behind every contract. We work out your true overhead base, including cost hidden inside job codes that’s really overhead, then calculate the turnover you need at your real margin to cover it and still leave the profit you want.
Your true overhead base separated from job cost, wherever it’s currently hidden
The turnover figure required at your real margin to hit your profit target
Common Pain Points
Why Turnover Growth Doesn’t Always Mean More Profit
Last year’s turnover says nothing about what’s signed, tendered, or your actual conversion rate on live bids.
Plans Built on History Instead of the Pipeline
Last year’s turnover says nothing about what’s signed, tendered, or your actual conversion rate on live bids.
Every Job Assumed to Earn the Same Margin
New build, refurbishment, small works, and day rate work behave completely differently, and one type usually quietly carries the others.
Overheads Treated as a Background Cost
Until the true cost of the yard, office, and admin is known, any turnover target is a guess dressed up as a plan
Work Priced to Win Rather Than to Profit
Winning a job below the margin your overheads require is effectively funding someone else’s project.
No Checkpoint Until the Accounts Arrive
A bad year gets discovered only once it’s closed and the figures are already fixed in place.
Pricing Not Moving With Rising Costs
Material and labour costs climbing faster than quoted rates quietly erode margin even on a full order book.
Free Consultation
Let’s talk about your construction accounting challenges
Book a 30-minute call with our specialist accountant for construction business. We’ll look at how your business is set up and flag quick wins you can act on straight away.
- CIS and VAT reverse charge handled correctly
- Deep expertise in contractor, subcontractor tax rules
- Forward-looking advice, not just year-end filing
- Transparent fixed fees, no surprises
Our Services
Complete Profitability Planning for Construction Businesses
From pipeline analysis through to monthly tracking, we build and hold the plan with you as your construction accountant.
Pipeline-Based Annual Planning
We build your plan from contracts in progress, work won, repeat business, and realistic tender conversion rates.
Margin by Work Type
We set a target margin for each category of work you do, based on what those jobs have actually returned.
True Overhead Base Calculation
We separate genuine overhead from job cost and work out what turnover needs to cover.
Break-Even Analysis
We establish the point below which the year stops paying for itself, so risk is visible in advance.
Work Selection Guidance
We give you a clear view on which contracts to chase and which to decline, with the reasoning behind it.
Monthly Tracking & Quarterly Reforecasting
We report figures against the plan monthly and rebuild it quarterly as contracts move.
Client Stories
Real feedback from real construction businesses
Over 60 verified five-star reviews from subcontractors, contractors and developers across the UK.
★★★★★
“I’d been under-claiming CIS repayments for two years without realising it. They found and recovered £14,000 within weeks of taking us on. Nobody had ever explained the scheme to me this clearly before.”
★★★★★
“We had no real idea which contracts were making money until they built us a proper job-costing system. Now we price the next tender based on actual data, not guesswork.”
★★★★★
“Every site brings its own VAT and SDLT questions, and they have never once been slow to answer. Switching from our old firm was the easiest financial decision we have made in years.”
FAQS
Key Questions and Answers about Cash Flow & Payment Delays
Is profitability planning the same as cash flow forecasting?
Can this work without job costing already in place?
Yes, though the first plan will be rougher; margin by work type sharpens considerably once job costing is running properly, so the two are often built together.
How is this different from a budget based on last year's accounts?
A budget from last year’s P&L applies a percentage to history, while profitability planning starts from contracts and tenders that actually exist and updates as they move.
We're turning over more but keeping less profit, why?
Usually one of three causes: pricing that hasn’t kept pace with material and labour costs, growth in a lower margin type of work, or overheads that grew with turnover and never came back down.
Will the plan ever tell us to turn down work?
Yes, and that’s often where most of the value sits; taking a contract at a margin below your overhead requirement is a decision to fund it at a loss, even with a full order book.
Does Construction Tax Accountants only work with larger contractors on this?
This service suits UK construction limited companies broadly in the £500,000 to £5 million turnover range, particularly those growing quickly or moving into new types of work.
Still have questions?
Our construction accountants are ready to answer any questions about your specific tax situation with no obligation for an initial conversation.
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