Ep3: Defence Contracts - Can You Afford to
Win the Work?
Winning the contract is only the beginning - can your cashflow, people and financial systems handle the work that comes with it?
There’s plenty of excitement around the opportunities emerging in Western Australia’s defence industry. But as Esther Anderson and Tom Hüberli discuss, the value of a contract is very different from the amount of cash a business actually has available to deliver it.
Tom, from RSM Australia (PaRK) in Rockingham, brings an accounting and financial perspective to the question of defence readiness. The conversation looks at what businesses need to understand about their numbers before they take on a major contract, including the costs that can arrive well before the customer pays.
We discuss:
- What financial readiness means for a business
- The difference between turnover, profit and cash
- Cashflow, balance sheets and P&Ls
- The costs that can come with winning a new contract
- Business structures and financial planning
- Cashflow and balance sheet forecasting
- Getting the right financial support around the business
Haven’t taken the Defence Reality Check yet? Start here.
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Tom Hüberli
About Tom,
With over 25 years at RSM Australia, Tom Hüberli is one of WA’s leading advisors on financial strategy, compliance, and business growth. Based at the PaRK office (Peel and Rockingham), Tom works closely with businesses of all sizes - from local engineering firms to larger corporates - helping them navigate the complexities of tenders, grants, and Defence contracting.
With extensive experience in the Defence and Manufacturing industries, Tom Hüberli is known for his ability to navigate sector-specific challenges and provide tailored financial and strategic advice to help organisations succeed. His in-depth understanding of compliance requirements, including Defence contracting, ODINS, and industry-specific tenders, makes him a trusted advisor to businesses looking to grow sustainably.
In addition to his industry focus, Tom is one of the few specialists in Australia with expertise in Swiss pension tax outcomes, assisting clients across both Australia and Switzerland to optimise their cross-border tax strategies.
IN THIS SHOW:
Episode Highlights:
- Readiness matters as much as opportunity. — Being able to attend events, meet potential partners and register on portals does not necessarily mean a business is ready to deliver when someone asks for evidence of capability.
- Ask the hard questions before bidding. — Businesses should consider their finances, people, systems, security and understanding of the tender before committing to pursue the work.
- A big contract can create a cashflow problem. — Winning work isn't enough if the business doesn't have the financial capacity to fund delivery while waiting to be paid.
- Capability on paper isn't the whole story. — A business needs people and the systems behind it to demonstrate that it can consistently deliver what it says it can do.
- Knowing what you don't know is useful. — The Defence Reality Check is positioned as a way for businesses to identify areas where they are not yet ready or are unsure.
- Use your first contract to build capacity. — If the first contract is successful, the experience and learning can help prepare the business for future contracts and the investment those opportunities may require.
Before you chase the next big contract, what do your numbers actually say about your ability to deliver it?
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