Let’s be honest – no one gets into the trades because they love chasing payments or balancing books. But without healthy cashflow, even the busiest tradie business can grind to a halt. That’s why these tradie cashflow tips are essential. They’re easy to action, and they make a real difference when it comes to keeping the cash rolling in and the stress levels down.
Whether you’re on the tools solo or running a team, staying on top of your finances helps you grow your business and sleep better at night. Here’s how to do it:
Invoice on the Spot 🛻💨
You’ve wrapped up a job and packed up the ute – now send that invoice. Every day you delay gives your client another excuse to pay late. Fast invoicing shows you’re professional and means you get paid faster.
You don’t need fancy equipment – just your phone and an app like Xero, MYOB or Quickbooks. Even a simple email works. The key is not waiting. Make invoicing the final step of every job – no different to cleaning up or locking up on your way out.
Track Every Dollar 📋✏️
If you’re not watching your outgoings, it’s easy for money to disappear. Fuel, materials, tolls, takeaway coffee – they all eat into your profit. Get in the habit of logging your expenses as they happen. Snap a photo of the receipt, use a simple app, or even just keep a shared note on your phone.
This isn’t about being tight – it’s about knowing what each job actually costs you. That way you’re not undercharging, and you’ve got a better grip on your margins.
Set Clear Payment Terms ⏳
Too many tradies still write “Due on receipt” and then wait 30 days. Be specific: “7-day terms” or even “Due immediately.” Then make sure it’s printed clearly on your invoice.
The ATO has some useful guidance on cashflow management that backs this up – shorter payment terms reduce the chances of late payment and give you more control over your cash.
Also: don’t be shy about following up. A friendly reminder message a few days before the due date can go a long way.
Build a Buffer 💼
When the rain won’t stop, your ute needs a new clutch, or the ATO sends a surprise bill, it helps to have something tucked away. A separate bank account for tax and savings gives you breathing room when things get tight.
Even setting aside at least 10% (but even better 40%) from every invoice builds up faster than you’d think. It’s not just about emergencies – this can also be your GST, super, and BAS money, safely out of reach until it’s needed.
Partner With a Good Bookkeeper 📚💡
You don’t have to do it all yourself. A good bookkeeper will help you stay organised, compliant, and ahead of the game. They’ll make sure your invoices are sent, your expenses are tracked, and your BAS and super are ready when they need to be.
At Tradies Bookkeeping, we speak your language. We work with construction crews, plumbers, chippies, sparkies all over Australia – you name it – and we’re always a step ahead. When your books are in order, you’ll feel the difference. Less admin, more time on the tools, and no nasty surprises.
Use Tech to Stay on Top of Things 📱
You don’t need to become an accountant overnight. There are great tools out there designed to make life easier for tradies. Cloud-based accounting platforms like Xero, MYOB and QuickBooks let you raise invoices, match payments, and track GST – all from your phone.
Even if you’ve never used accounting software before, these platforms are built to be simple. And if you’re working with a bookkeeper, they’ll help you set it up properly so you’re not doing it alone.
💡 Pro tip: Don’t think of invoicing as admin – treat it as part of the job. Job’s done? Invoice goes out. That’s how professionals roll.
Want to tighten up your cashflow?
We help tradies across Sydney, Melbourne, Brisbane, Perth, Canberra, Adelaide, Darwin and Hobart and beyond stay on top of their numbers without the stress.
Call Bettina on 0424 467 921 or email bettina@tradiesbookkeeping.com.au to get started.