Alex Scott from TradiesWorld is our guest contributor.
Bookkeeping a Pain?
Here are 3 tips to help minimise it…
1. You’ve probably heard it 1,000 times before, but if you haven’t done so already, set yourself up with an Online Accounting Program such as Xero.
If you don’t have the time or, more importantly, the energy to set it up yourself, ask your bookkeeper or accountant to do it for you.
When you’re running a busy trades business one of the hardest things to do is learn a new system but this one will give you the biggest bang for your buck in terms of time savings and cash flow improvements.
2. Invoice the client as soon as you’ve finished each job and give them the ability to pay you by credit card.
“You’ve got to be kidding” we can hear you say…..
After you’ve implemented your online accounting, you’ll be able to whip up an invoice on your phone in a couple of minutes and immediately email it to your client. As soon as they receive it, they simply open it, click through to an online payment service and enter their credit card details.
It really is that easy.
Alternatively you can buy a credit card payment device such as Square and your clients can swipe their card on the spot.
I was recently talking to an electrician that we’ve just implemented Xero for, and his exact words were:
“When I first started the business I planned to do my invoicing every night but then I’d get side-tracked and it would be days before I sent them. Now I email invoices straight from the Xero app on my phone as soon as I finish the job and my clients love it. I do a lot of work for real estate agents and they can’t believe how quickly I invoice them. As a result, I get paid a lot sooner”.
3. Set up a separate Savings Bank Account for your GST, tax and superannuation and transfer the appropriate amounts into it every week.
The benefits are twofold:
a) You’ll be confident knowing that that the money in your trading bank account can be used to cover expenses and pay yourself
b) At BAS time, you won’t have to worry about whether you’ve got enough money to pay your GST, tax and super obligations. It will be there
There’s a huge amount of work involved in running a trades business.
If you don’t already have the above 3 things in place be kind to yourself
and implement them.
You’ll be surprised at the huge difference they make.
TradiesWorld provides quality, cost effective bookkeeping to the trades and construction industry whose sole purpose is to take away the hassle of keeping your bookkeeping and other administration up to date.
P: 1300 T WORLD | M: 0414 330 580