NextMinute Constructing a

Constructing a process to eliminate revenue leakage

Using job management software to control and profit from scope creep

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Emily Mason, Partner Manager, NextMinute

I have worked in the cloud accounting space for the past 8+ years, in both an accounting & bookkeeping firm and within the Xero Ecosystem.

I see NextMinute as the upcoming job management system for trade & construction clients because of the excellent Xero integration for timesheets, invoices and bills and accessibility on iOS, android, tablets and computers.

Leaky tap? Call a plumber. Leaky pool? Call a tiler. Leaky roof? Call a builder. Business leaking money? Call a... Bookkeeper, accountant, all of the above?

Generally, tradies on a job site know the what,

when, who and why of the job. However, this information is often hand-written on a post-it note or worse, it is just in their head. You, and them, know the business is bleeding money, but you don’t know where from. How are you meant to help them if the information of every job is being retained somewhere inaccessible.

In the accounting world, we all know of “scope creep”, it has been discussed time & time again, and of course we are not the only ones affected.

For the trades it is more commonly referred to as “variations” specifically on a fixed price job.

Scope creep is not a bad thing, it is unplanned & unexpected growth in the scope of the job - but it can cause a negative impact when there is no system in place to deal with it, or ability to identify it.

I hear the same scenarios over and over from tradies: 1. “If it is less than $500, then we just write it off” or; 2. “If it takes less than 1 hour, we just get on and do it” 3. “I told the client whilst we were

So, what if there are 10 x “minor” changes requested throughout the job and each cost $450? That could be $4,500 worth of revenue leaking from the business because it is not tracked.

And what if each variation took 45 minutes? That is 7.5 hours, nearly an entire working day.

The staff still need to get paid for their time, the materials still need to be used but the business is not receiving the additional revenue for the work completed.

The end result is always the same, the client thought it was $3,500 not $4,500, they are minutes but it keeps an audit trail. annoyed when it is added to the final invoice with no It can be explanation. They captured onsite complain, the cost at the time and is negotiated, the The customer knows ensure those business loses their total costs dollar leaks are out and the client upfront and the sealed up. has a bad taste in their mouth. tradesperson is paid what they deserve! The customer knows their total A simple solution is costs upfront capturing and sending and are happy they Quote Variations. have found an “honest Raise a new quote detailing the tradesperson, the tradesperson is changes & costs for the client to paid what they deserve and you accept - It might take an extra 5 can start reporting on the good news story of increased revenue & accurate profitability.

So the clients can call you to help fix their money leaks, and you can call us to help put a system in place.

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nextminute.com/scopecreep

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