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Accounting for Funeral Homes & Funeral Directors
Here at MGR Accountants we specialize in accounting for Funeral Homes.
In fact, one of our Partners belongs to a family that is in its fifth generation of funeral directing in the local Bendigo region. As such, we have an intricate understanding of funeral homes and how they work on an operational and financial level. Peter Mulqueen says, “I have first-hand knowledge of family expectations around funeral etiquette, the demands of being on call at unsociable hours and the need to always perform at your best. It can be a complex business with so many options regarding funeral arrangements, different religions, ethnicities and cultural traditions.”
Financially speaking, as with any other business, you need to closely manage income and expenditure and in particular you need to keep an eye on some key performance indicators (KPI’s). Service fees and the billing of ‘add on services’ are critical aspects of revenue KPI’s. Outside of disbursements, wages and the associated on-costs together with motor vehicle expenses are the next biggest expenses that need to be closely monitored.
The funeral industry continues to evolve and while the original ‘undertaker’ terminology has been replaced by the title ‘funeral director’, there are major operational changes taking place. There is an overwhelming trend towards personalization of funerals and technology is also driving change with the webcasting or streaming of memorial services over the internet and the emergence of social media. When you combine client expectations, the ever changing landscape, our ageing population and the unpredictable demand for your services you really begin to understand the unique nature of the funeral industry.
It is an industry that is becoming more competitive every day and we have been working with our funeral director clients to provide innovative solutions to improve profit margins and therefore reward for effort. The erratic nature of the industry combined with the long hours and bereavement support can be draining and consequently the administration, financial management and bookkeeping functions often don’t get the attention they deserve. We understand the issues and can tailor a package to assist you.
MGR Accountants is currently the only accounting firm in Australia that specializes in the provision of financial services to the Funeral Industry. It currently boasts supplier memberships of:
- Australian Funeral Directors Association
- Queensland Funeral Directors Association
- Funeral Directors Association of NSW
- National Funeral Directors Association of Australia.
Peter Mulqueen also regularly presents professional development sessions to all of the above Associations and is a sought after speaker nationally. He is also an international member of National Funerals Directors Association of America
MARKETING YOUR FUNERAL HOME
As accountants we operate in a very crowded and competitive industry. We recognise the fact that your marketing could be the difference between gloom and boom and while we have a small firm personality, we have big firm capabilities. One feature that distinguishes us from other accounting firms is our marketing expertise.
A lot of funeral homes are local family owned businesses. Just like most accounting firms they have relied on reputation and referrals to
grow and succeed. These ingredients remain important, however, in the digital age your online presence is critical. Increasingly local
searches like ‘funeral director Melbourne’ are driving traffic to your website and in effect, your website is your silent
salesperson. Often it is the first touch point with a potential new client.
Over the past few years we have worked with dozens of clients to help them create quality, affordable lead generation websites that are responsive to smart phones and tablets. We can help you plan and build your website, optimise it for Google and the other search engines plus assist you with your content creation including video production and digital publishing. If your website is missing features like lead magnets, calls to action or landing pages we'll help you build them plus we'll also introduce you to strategies like re-marketing and search engine optimization to drive more traffic to your website.
Your brand should resonate with your target market and we can assist you with the development of your business name, logo and slogan, your
corporate brochure plus we can help you write blogs and newsletters plus help you harness the power of social media to win more referrals.
If you aren’t using some of these marketing techniques your business probably won't reach its full profit potential.
We will help you understand the four ways to grow a business plus identify the key profit drivers in your business. We can walk you through a number of profit improvement strategies and even quantify the profit improvement potential in your business. Our role is to make sure you know your numbers and don't leave any profit or tax savings on the table.
THINKING OF STARTING A FUNERAL HOME
Funeral home owners are one of our specialist client groups and having mentored hundreds of business owners through the start-up phase of their business we have built a reputation as business start-up specialists.
If you are looking to start a business as a funeral home owner or buy into an existing business, there are numerous issues to consider. You need to establish your business structure, complete tax and GST registrations, consider insurances, select an accounting software program and possibly explore your finance options. It can be a maze of issues but as accountants and business advisors we can assist you in all of these areas plus provide advice on the preparation of a business plan, marketing plan and a cash flow budget. If you are contemplating employing staff we can also assist you with human resource matters including payroll, WorkCover and superannuation guarantee obligations.
Over the past two decades our team of accountants have helped dozens of funeral home owners get their business off to a flying start. We offer you experience, technical tax knowledge, marketing expertise and most importantly, an intimate understanding of the trade industry.
Starting a business is a bit like building a house that requires solid foundations. In a business sense these foundations include the right tax structure and accounting software, adequate and appropriate insurances together with a marketing plan and a lead generation website. Your choice of business structure is absolutely critical and there are a number of different options including sole trader, partnership, company and trust. When selecting the most appropriate structure for your business we always recommend you ‘start with the end in mind’ because Australian tax laws are complex and changing your business structure at some point in the future can trigger a capital gains tax event that could prove very costly.
Whenever we provide advice on business structures we always take into account:
- Income Tax Minimisation
- Maximize Asset Protection
- Allow for the Admission of New Business Partners or Investors
- Comply with all Legal Requirements in your Industry
- The Risk Profile of Your Industry
- Consider Future Entitlement to Discount Capital Gains Tax Concessions
As a consequence, we often find the business structure is a compromise based on the relative importance of each of these issues.
Another brick in your business foundations is your choice of accounting software. Poor record keeping is one of the biggest causes of business failure in this country and up to date, accurate financial records let you to make informed business decisions. The wrong choice of software can be catastrophic and too often we find business owners produce what we describe as ‘computerised shoebox’ records that cause frustration, waste time and create additional fees. This conflicts with our mission of helping you slash the time and cost associated with bookkeeping and GST compliance.
Here at MGR Accountants, we want to be your accountants and business advisors, not just an expensive bookkeeping service. We do more than ‘keep the score’ for our clients and when selecting the most appropriate accounting software for your business we always r recommend you match your business needs with your level of accounting skill. You’ll find we support a range of different software options but we do have a preference for cloud based solutions like Xero because of their flexibility and the fact that you can access your financial data via the internet and invite your accountant or bookkeeper to view your accounts at the same time. This means you can get bookkeeping support and valuable advice in real-time. You can also log-in anytime, anywhere on your Mac, PC, tablet or smart phone to get a real-time view of your cash flow. Your data is automatically backed up and users have access to the latest version of your financial data plus you never need to worry about installing software or program updates.
To build a house you also need the right tools and when 'constructing' your business we have developed a number of tools including a start-up expense checklist broken down into various categories including:
- tools and equipment
- professional advice and software
- information technology costs – software and hardware
- marketing and signage
- vehicle costs
This checklist will help you identify all your potential establishment costs and these figures then feed through to our cash flow budget template and allow us to produce a projected profit and loss statement for your first year of trading. These reports can also tuck neatly into our business plan template that is designed to help you secure funding from external sources like a bank.
For a funeral home owner, your vehicle is arguably one of your most important business tools. To learn more about the alternative methods of claiming your vehicle expenses and the distinction between a business and private trip, you can read our Motor Vehicle Tax Guide. In addition, through our affiliate partners we can also assist with vehicle finance (chattel mortgage, CHP or lease) and get you fleet pricing on your new car, ute or light commercial van that could save you thousands of dollars. Through another affiliate group we can also help you source funds to finance your business purchase, equipment or where applicable, your franchise fee.
In summary, if you're contemplating starting a business you don't need to reinvent the wheel as we have all the tools and resources to help you get off to a flying start. In fact, that’s just the beginning because as accountants we can do some financial modelling and prepare some ‘what if’ calculations based on different price points so you know your business’ best and worst case profit scenarios. Next, using industry benchmarks we can compare the performance of your funeral home against your competitors so you understand what is working in the business and what areas need working on.
That’s really just the beginning because as accountants we can do some financial modelling and prepare some ‘what if’ calculations. This lets us project your business’ best and worst case profit scenarios. Next, using industry benchmarks we can compare the performance of your funeral home against your competitors so you understand what is working in the business and what needs working on.
Our mission is to help you fast track your business success and the team at MGR Accountants offer you a range of accounting, taxation, marketing and business coaching services including:
- Start-Up Business Advice for Funeral Home Owners
- Advice regarding the Purchase or Sale of your Business
- Tools including the Start-Up Expense Checklist and Templates for a Business Plan, Cash Flow Budget, Letterhead and Business Card
- Advice and Assistance with the Establishment of Your Business Structure - Company, Trust, Partnership
- Tax Registrations including ABN, TFN, GST, WorkCover etc.
- Preparation of Business Plans, Cash Flow Budgets and Profit Projections
- Accounting Software Selection and Training – Bookkeeping, Invoicing, Quotes & Payroll
- Preparation and Analysis of Financial Statements
- Preparation of Finance Applications - Loans to Buy a Business, Expand, Franchise Fees
- Bookkeeping and Payroll Services - MYOB, Cashflow Manager, Xero, Reckon & Others
- Tax Planning Strategies
- Assistance with your Marketing including your Branding, Corporate Brochure etc.
- Advice and Assistance with your Website Development, Content, Videos, Blog Posts and SEO
- Wealth Creation Strategies and Financial Planning Services including Transition to Retirement & SMSF's
- Industry Benchmarking and Management of Key Performance Indicators (KPI's)
- Vehicle & Equipment Finance (Chattel Mortgage & Lease)
- Monitoring and Controlling Labour and Sub-Contractor Costs
- Advice & Assistance with Pricing your Services and Claiming Motor Vehicle Expenses
- Recession Survival Strategies
- Advice regarding Employee Relations and Workplace Laws
- Business & Risk Insurances (Income Protection, Life Insurance etc.)
- Business Succession Planning
In summary, we are so much more than just tax accountants. We are business and profit builders who strive to deliver practical, cost effective advice that could give you a serious competitive edge in your industry. Our marketing strategies are designed to help you grow your business and your profits and over the past 15 years funeral home owners have become a niche area within our firm.
Our marketing skills distinguish us from other accounting firms in Melbourne and if you're a committed and ambitious business owner looking to accelerate your success we invite you to book a FREE, one hour introductory consultation to discuss your business needs. You can expect an hour of practical business, tax, marketing and financial advice that could have a profound effect on your future business profits. To book a time, contact us today and let's get to work on your business so it's more profitable, valuable and saleable.
Funeral Homes Accounting Team
|"Peter Mulqueen is an accounting expert with the additional benefit of really understanding our industry. Kelly is also a great professional and an absolute delight to deal with. Call them, you won’t be disappointed." – Don Burstow, TS Burstow Funerals Pty Ltd|
|"MGR knows the Funeral Industry like the back of their hand."
- Jane Domjahn, Funeral Transfer Services of Australia
|Know the Funeral Business and know the Associations business.
– John Kaus, Funeral Directors Association of NSW Ltd
|Personal service provided efficiently and extremely cost effective.
– Noel Woff, Funeral Planning Australia Pty Ltd