Top Bookkeeping Tips for Tradies to Save You Time and Money!
As a tradie running a business, you are constantly on the road, on the move, and busy. Leaving little time for complex bookkeeping processes. These are our top tips to save you time and money on your bookkeeping.
- Go paperless and use cloud-based accounting; by using document storage systems such as Receipt Bank or Hubdoc, paired with cloud-based accounting, Tradies can go paperless. No more stashing of fuel and Bunnings receipts in the glove box (or a beer box), just take a photo and the systems will do the rest. You can even invoice your customers on the spot, on your mobile and email it straight to them, making invoicing and collecting payments simple and fast.
- Find a good advisor; working with an advisor you will be on top of your business, you’ll be able to plan for growth and pick up potential issues before they happen. By working closely with cloud based bookkeeping service and a Cash Flow expert you will have current and relevant accounts, so you can make important business decision. Ensuring you hit those business goals and targets, getting higher profits and positive cash flow.
- Keep personal and business finances separate; if you have your personal accounts mixed up with your business; if you’re using the same bank accounts for both, then it’s really difficult to get a clear picture of how your business is performing. There are some great tips on how to separate your business accounts from your personal in the post “Keep your business and personal finances separate”.
- Plan for major expenses; a lot of small business come unstuck when they fail to plan for major expenses. This might be new equipment or payment of your BAS and staff Superannuation. These need to be accounted for in your cashflow forecast and the money set aside.
- Set aside money for taxes; just like big expenses, income tax can be a huge hit to a small business owner. By estimating your future earnings and by reviewing your accounts monthly or quarterly you can set aside money so taxes can be paid at the end of the year.
- Keep an eye on your invoices; firstly, start with ensuring your invoice you send to your customers are correct. One reason customers can hold off payments is if there is something wrong with the invoice. If customers are not paying invoices by their due date, then you should look at implementing systems to help them pay quicker or set up a debt collection process.
- Keep daily records and reconcile bank accounts at least monthly; by using cloud-based accounting systems it is easy to keep your accounts up to date, daily. Your bookkeeper can reconcile monthly (or more regularly if necessary), which means you will have up to date and relevant figures, so you can make important decision.
- Avoid cash; tradies are notorious for using cash, but cash can be hard to record, and it’s easy to lose track of how much you are spending. By using online banking or your credit/debit card expenses and payments are recording through the bank. And likewise, with receiving payments from your customers. By allowing online payments or credit card payments you make it quicker and easier to receive money, and where the money is coming from is recorded too. You can link your bank to your accounting system to import all those transactions, so you (or your bookkeeper) won’t have to process them individually, saving you time and money.
We hope these tips make your life much easier and your business successful. Fore more information on setting up cloud based accounting systems or bookkeeping services please give us a call or email.