SERVICES & ADVICE
QBCC Financial Reporting Season - Are you prepared? THERE’S NO DOUBT THAT KEEPING YOUR QBCC LICENCE INTACT IS CRITICALLY IMPORTANT FOR BUILDERS AND TRADIES. WITHOUT A LICENCE YOU DON’T HAVE A BUSINESS. Despite this, Michael Renton from Xact Accounting says they unfortunately see more and more licensees landing in hot water with the QBCC and on the edge of having their licence suspended or cancelled. This is largely due to ongoing confusion and lack of understanding around the QBCC’s Minimum Financial Requirements (MFR). And in almost every case they deal with, the crisis could have been averted if addressed correctly in the first place. The industry is entering the third year of the QBCC’s annual financial reporting regime, and they expect the QBCC are getting more and more efficient at tracking down non-compliance. Michael also expects that current conditions in the industry will exacerbate
these underlying issues with QBCC MFR compliance. Many businesses have seen a jump in revenue due to greater demand, but with margins being squeezed, he is concerned these dynamics will trigger several MFR failures.
of which are outside standard practice in accounting. As a result, they regularly see licensees make multiple, unsuccessful attempts at resolving an MFR issue, further complicating their position, and increasing their stress levels.
SO, WHAT SHOULD YOU DO IF YOU DO FIND YOURSELF IN TROUBLE WITH THE REGULATOR?
Michael says they understand that there have been exceptionally difficult conditions in the industry and the last thing you want to deal with is an issue with your QBCC licence. In the end, though, if you act quickly and seek specialist advice, you’ll end up saving yourself a lot of time, money and heartache – and ensure your licence is protected.
It sounds like a cliché, but the worst thing you can do is bury your head in the sand. Whether it’s because you’re too busy – or you’re not sure how to fix your situation – failing to respond to the QBCC will only make the hole deeper. The sooner you get on the front foot, with a specialist QBCC accountant at your side, the better the outcome will be. An equally dangerous approach, alongside burying your head in the sand, is engaging with the QBCC without a solid game plan. The QBCC have very specific tests for determining whether you meet your minimum financial requirements – some
MASTER BUILDERS QUEENSLAND MEMBERS ARE ELIGIBLE FOR A FREE QBCC FINANCIAL CHECK-UP WITH XACT ACCOUNTING. REACH OUT IF YOU NEED SOME SPECIALIST ADVICE. CALL XACT’S QBCC ACCOUNTING HOTLINE ON (07) 3124 8666 OR VISIT WWW. XACTACCOUNTING.COM.AU/QBCCACCOUNTING
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