Reviewing Fleet and Equipment Funding Before It Becomes a Burden

Heavy vehicles, elevated work platforms, welding equipment, field service vans, they all age, and many of them were financed under now-outdated terms. EOFY is the time to reassess whether those assets are still serving the business or quietly draining capital.

What operators are doing:

• Restructuring finance terms to improve cash flow or accelerate depreciation timing

• Replacing tools or vehicles before performance or maintenance becomes a liability

• Aligning asset plans with available write-off thresholds and industry-specific leasing options

Why it matters: Aged equipment lowers productivity and increases downtime, but rushed replacement without financial foresight can be just as damaging.

Reconciling WIP and Project Valuations to Preserve Margin Integrity

In trade services, a lot can hide inside your WIP. From overstated progress on fixed-price jobs to under-costed scope changes, the year-end WIP balance is often where margin leaks reveal themselves.

What the more disciplined operators are doing:

• Rechecking cost-to-complete estimates and tying them to job-site input, not just office forecasts

• Reviewing how margin is being recognised across lump-sum vs hourly engagements

• Ensuring variations are being properly captured, invoiced and booked before they disappear into next year’s fire-fighting

Why it matters: A clean WIP file supports credible financials, preserves borrowing power and prevents unpleasant audit calls down the line.

Tightening Receivables Before Liquidity Suffers

Industrial services often work with large commercial clients and long payment cycles. But when overdue accounts stack up or progress claims stall, even profitable businesses find themselves in a cash crunch.

How operators are fixing it:

• Escalating all 30+ day invoices and locking in recovery targets by client

• Working with PMs and admin to reconcile claims vs received payments

• Reviewing customer contracts to tighten future billing triggers

Why it matters: Strong receivables control is what separates businesses that grow from those that get stuck juggling cash every month.

Getting Ahead of Compliance and Risk Obligations

Increased audit scrutiny across insurance, safety, subcontractor control and Workcover means EOFY is no longer just about numbers. It's about being structurally prepared for external review.

Key moves we’re seeing:

• Validating insurance cover against current asset and contract exposure

• Reviewing WHS policies and incident registers for up-to-date reporting

• Ensuring Workcover declarations match actual payroll categories and job profiles

• Updating subcontractor agreements, licenses and documentation before anything lapses

Why it matters: Audit triggers are no longer rare and preparation is much cheaper than remediation.

Structuring Staff Incentives to Retain Core Capability

When field technicians, estimators or site supervisors leave, projects don’t just slow down. Margins evaporate. Retention is no longer a culture conversation alone. It’s a financial risk conversation.

How smart firms are responding:

• Structuring performance-based bonuses that are tax-effective and milestone-linked

• Deferring part of incentive payouts to align with job delivery, not just calendar timing

• Offering long-term incentive plans (LTIPs) to key team members without resorting to equity

Why it matters: Your best people are your continuity. Incentives aren’t generosity, they’re strategic defence.

Final Thoughts

EOFY is a rare checkpoint where operational risk, tax timing and capital planning overlap.For industrial and trade services businesses, this is not a time for passive reporting. It’s a time to act precisely, defensively and with FY26 in view.

At The Ark, we help operators not only lodge on time but lead with clarity.If you’d like to review your WIP structure, funding strategy or compliance posture before year-end, we’re ready to support.

Let EOFY be the point where your financial position strengthens not just settles.