Log In

Share This Page

Geolocating...

Mastering Financial Success in Earthmoving: Insights from Industry Expert Joel Akerlund

Mastering Financial Success in Earthmoving: Insights from Industry Expert Joel Akerlund

Mastering Financial Success in Earthmoving: Insights from Industry Expert Joel Akerlund

Mastering Financial Success in Earthmoving: Insights from Industry Expert Joel Akerlund

Mastering Financial Success in Earthmoving: Insights from Industry Expert Joel Akerlund

Running an earthmoving business today takes more than just operating machinery and winning work.

Behind every successful contractor is a business owner who understands:

  • cash flow
  • profitability
  • finance
  • pricing
  • systems
  • and long-term planning

On a recent Earthworks Hub Podcast episode, we sat down with Joel Eklund from Sunshine Finance Brokers to discuss his journey from working in the earthmoving industry to helping contractors finance and grow their businesses across Australia.

With experience on both sides of the industry, Joel shared practical advice that operators, contractors and business owners can apply immediately.

Why Financial Management Matters in Earthmoving

The earthmoving industry can be unpredictable.

Projects get delayed. Fuel prices rise. Wet weather slows work. Clients stretch payment terms. Machines break down.

That’s why Joel believes understanding your numbers is one of the most important parts of running a successful business.

“Know your numbers. It’s the biggest thing. Manage your cash flow, have your pre-tax meetings, and understand your profitability.” — Joel Akerlund

Many contractors focus heavily on machines and operations but neglect systems that track:

  • machine costs
  • fuel usage
  • profitability
  • maintenance
  • labour
  • cash flow

Without accurate data, it becomes difficult to price work correctly or make smart financial decisions. Using templates such as the Equipment ROI calculator can help with this.

Understanding Your Real Operating Costs

One of the biggest mistakes contractors make is underestimating the true cost of operating machinery.

It’s not just:

  • fuel
  • repayments
  • operator wages

You also need to account for:

  • servicing
  • breakdowns
  • insurances
  • downtime
  • tyres/tracks
  • transport
  • administration
  • GST and tax obligations

Joel explained that businesses using proper tracking systems and job costing tools are usually far more profitable long term.

Using tools like the Earthworks Hub Hourly Rate Calculator can help contractors better understand:

  • machine operating costs
  • required charge-out rates
  • profit margins
  • overhead recovery

When you know your numbers properly, you stop guessing.

Cash Flow: The Biggest Business Killer

Cash flow issues are one of the most common reasons earthmoving businesses struggle.

You can have:

  • plenty of work
  • expensive machinery
  • large invoices outstanding

…and still run into serious financial stress.

Joel stressed the importance of forecasting and preparing for quieter periods.

Practical Cash Flow Tips

1. Keep Money Aside for Tax

A common recommendation is setting aside around 10–20% of income to help cover:

  • BAS
  • GST
  • tax obligations
  • unexpected expenses

2. Forecast Ahead

Understanding:

  • upcoming repayments
  • project timing
  • seasonal slowdowns
  • major expenses

helps avoid surprises.

3. Build Financial Buffers

Businesses with emergency reserves usually survive downturns better than those operating week to week.

“Cash flow kills more businesses than lack of work.” — Joel Akerlund

Why Systems & Processes Matter

One of the strongest themes throughout the conversation was the importance of systems.

The businesses that tend to survive and grow long term usually have:

  • organised bookkeeping
  • accurate quoting systems
  • job costing
  • financial reporting
  • operational processes

Joel recommends using accounting software like Xero alongside proper templates and reporting systems.

Earthmoving businesses that track:

  • machine hours
  • fuel burn
  • maintenance
  • labour costs
  • profitability per project

are generally in a much stronger position to scale. Members of Earthworks Hub get a discount with XERO. See the member options for more.

Pre-Tax Planning Can Save Thousands

A major mistake many contractors make is waiting until after EOFY to speak with their accountant.

Joel strongly recommends having a pre-tax planning meeting before the financial year ends.

This gives businesses time to:

  • structure purchases properly
  • reduce unnecessary tax
  • improve cash flow planning
  • understand deductions
  • plan asset purchases strategically

“Have a pre-tax meeting with your accountant now, rather than after the period is closed. Planning ahead saves money.” — Joel Akerlund

Buying Equipment: Cash vs Finance

One of the biggest questions contractors ask is:

“Should I buy machinery outright or finance it?”

According to Joel, the answer depends on:

  • cash flow
  • business structure
  • future plans
  • tax strategy
  • available capital

Buying Outright

Advantages may include:

  • no repayments
  • simpler ownership
  • potential tax benefits

Financing Equipment

Finance can help businesses:

  • preserve working capital
  • maintain cash flow
  • upgrade equipment sooner
  • expand operations faster

Joel explained that many successful contractors use finance strategically rather than tying up all their cash in machinery.

Asset Capital Raising Explained

An interesting topic discussed on the podcast was capital raising against existing equipment.

If machinery is owned outright or has significant equity, businesses may be able to leverage those assets to:

  • fund expansion
  • purchase additional machinery
  • improve cash flow
  • take advantage of new opportunities

However, Joel noted that businesses should always understand:

  • interest costs
  • repayment structures
  • long-term implications

before proceeding.

The Importance of Knowing Industry Cycles

The earthmoving industry constantly changes.

Factors affecting contractors include:

  • fuel prices
  • housing markets
  • government infrastructure spending
  • weather
  • interest rates
  • material costs

Joel believes businesses with strong systems and financial discipline are usually the ones that survive downturns best.

“The contractors who know their numbers usually survive downturns better.” — Joel Akerlund

He also encouraged contractors not to get caught up in constant negativity online or in the media.

Instead, focus on:

  • improving systems
  • controlling costs
  • building relationships
  • delivering quality work
  • planning ahead

Practical Advice for Earthmoving Businesses

Here are some of Joel’s key recommendations from the episode:

Implement Proper Systems

Use accounting software, templates and reporting tools to track profitability and costs accurately.

Understand Your Machine Costs

Track:

  • fuel usage
  • servicing
  • repairs
  • machine hours
  • downtime

Improve Cash Flow Management

Forecast ahead and avoid relying purely on incoming invoices.

Plan Before EOFY

Speak with accountants early and understand your options before making purchases.

Use Finance Strategically

Finance should support growth — not create unnecessary stress.

Build Relationships

Work with lenders, accountants and brokers who understand the earthmoving industry.

Earthmoving Industry Outlook in 2026

Despite challenges across the industry, Joel believes there are still strong opportunities available for businesses that operate professionally and understand their numbers.

Contractors who focus on:

  • systems
  • financial management
  • operational efficiency
  • reputation
  • smart growth

will continue putting themselves in strong positions moving forward.

Watch the Full Podcast Episode

This article is based on a recent Earthworks Hub Podcast conversation with Joel Eklund from Sunshine Finance Brokers.

Watch the full episode on:

Need Help Financing Equipment?

Joel and the team at Sunshine Finance Brokers work with earthmoving and civil construction businesses across Australia.

Whether you are:

  • purchasing your first machine
  • expanding your fleet
  • refinancing equipment
  • improving business cash flow

they understand the realities of the industry because they have worked in it themselves.

You can also explore more business resources, templates and industry content through Earthworks Hub.

Find Sunshine Finance Brokers in the Earthworks Hub Industry Suppliers and Services Directory

Related Earthworks Hub Resources

FAQ

What is a plant hire agency?

A plant hire agency generally sources work for subcontractors and owner operators rather than owning all machinery themselves. They connect projects with contractors and equipment operators.

How can I improve cash flow in my earthmoving business?

Regular forecasting, tax planning, accurate job costing and maintaining cash reserves are some of the best ways to improve cash flow stability.

Is it better to finance machinery or buy outright?

It depends on your cash flow, tax strategy and business goals. Financing can preserve working capital, while buying outright may reduce ongoing repayments.

Why is pre-tax planning important?

Meeting with your accountant before EOFY allows businesses to structure purchases and finances strategically rather than reacting later.

Why is understanding machine costs important?

Knowing fuel usage, maintenance costs and hourly operating expenses helps contractors quote work accurately and protect profitability.