This construction business needed a more timely and accurate way to assess the profitability of the different building projects it delivers. Prevail helped the company to gain the real-time insights it needed to take action and boost profitability.

Pawlus Group is a construction business that specialises in construction and joinery services as well as the installation of windows and doors for customers in London and the surrounding areas.

Anna Pawlus is the Bookkeeper for Pawlus Group. She explains, “We needed help with planning, budgeting and better understanding the cost of our projects. In the construction industry, it can be hard to accurately attribute all costs to a project. However, it’s important to be able to do this so we can understand the profitability of individual projects as well as the business overall.”

The existing reporting provided a clear picture only once a year when the end-of-year accounts were completed. And, by then, it was already out of date. The business needed information much more regularly in order to plan better. This way, it could take action when necessary to ensure good profitability.

Pawlus Group began speaking with Prevail Accounting in 2021, following a recommendation by a mutual business associate. Although the complexity and uncertainty of the pandemic made Anna’s job more difficult, she felt confident that Prevail could deliver the support she needed.

“We met a few times and discussed our plans for the business in the future. Prevail helped us to develop our plans on this basis so we can achieve our goals,” says Anna.

One of the early projects that Pawlus Group undertook with Prevail was to move onto a new, cloud-based accounts software.

“We switched over to the new software on the first day. Prevail helped us set up everything; it was really easy,” says Anna. “I felt comfortable with it almost immediately. The new system is especially good for the construction industry.”

The new digital solution has helped to reduce the administrative burden for Anna. Anna estimates the new software has saved her two to three hours every day.

She explains, “Everything is in one place; a lot of the checks I used to do are no longer necessary. I always know that we have enough liquidity in the business and enough savings to cover tax liabilities. It takes no time. So I can spend those extra hours each day to grow our business.”

For Anna, this meant concentrating on sales and marketing and on business development as well as sourcing new suppliers. Pawlus Group has used the opportunity to diversify into new areas. At the end of 2022, it launched a new service for its customers: the sale and installation of an extensive range of windows and doors.

As well as reducing the administrative burden and freeing up time to exploit new opportunities, the improvements implemented with the help of Prevail have improved the quality of availability of key business information. Information is now much more accurate and available in real-time.

“Our costs are now 100 percent accurate,” Anna states. “Prevail has helped us understand much more clearly where our break-even point is for all of our projects and for our business. We now have a much clearer view of costs, tax liabilities and profitability by project and for the business overall.”

Prevail created a number of special reports to track costs on a per-project basis. It is now possible to attribute all costs, including all staff costs, directly to a customer project. 100 percent of all costs are allocated to a project and can be tracked in real-time. This ensures much tighter control of expenditure throughout the business.

Another key area of improvement initiated by Prevail was the creation of annual and five-year budgets. In this way, Pawlus Group had a clear plan for growth and the ability to track financial performance against it.

Anna says, “We can now check in real-time how everything is progressing against our budgeted plans. If we aren’t on track for any reason, we can make changes so that we always remain profitable.”

With high inflation and increasing prices in the construction sector, managing costs effectively and responsively has become increasingly important.

Anna says, “With Prevail’s support, it’s easier to be profitable. If something is going off course, we can see straight away and improve it.”

Business profitability has improved as a result. Whereas it once averaged around five to eight percent, profitability per job has now risen to between fifteen and twenty-five percent.

Anna concludes, “Prevail is so knowledgeable and helpful. Every time I call with a question, they are happy to provide the answers I need. I would definitely recommend Prevail Accounting; they have a lot of experience in the construction industry, and they are so professional, positive and inspiring.”

Would you like to be able to track financial performance more accurately against all the projects your business delivers and achieve the boost to profitability that Pawlus Group has achieved?

Call Prevail today on 01706 550 825.