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Basic bookkeeping skills for tradies (and how a Melbourne bookkeeper helps!)

Wednesday, July 18, 2018 - by Max Business

We know what you’re thinking: you’re a tradie. You work with your hands, not with calculators and spreadsheets.

Those who hate maths or have a hard time looking at numbers don’t have a choice - any business owner needs to have basic bookkeeping skills, regardless of their trade.

Take it from us: acquiring basic bookkeeping skills is a vital step in helping you run your tradie business.

Here are some of the basic skills you’ll need to ensure your tradie bookkeeping works out.

Melbourne bookkeeper

1) Basic bookkeeping requires organisation skills

Recording all your numbers is one thing. Setting them up in a manner where you can actually understand what they’re saying is a different matter!

Tradies who are serious about doing their own bookkeeping should ensure that every business transaction is organised and filed properly.

That means:

  • Assigning job numbers
  • Allocating numbers to invoices
  • Creating a positive bookkeeping workflow

Even the most accurate record-keeping is meaningless if you can’t find the information you want!

 

2) Attention to detail is critical in bookkeeping

You wouldn’t cut corners on a big job. Likewise, you shouldn’t omit details from your bookkeeping either!

Ensuring 100% accuracy in recording financial transactions is essential in any business - that includes tradies.

Small mistakes can lead to huge difference in your accounts and reports. Tradies need to be meticulous in tracking transaction records making sure that everything is billed and paid on time.

Luckily, modern bookkeeping software make the process of recording every little detail easy. MYOB and Xero will even integrate with your accounts and other software, meaning you don’t have to lift a finger.

Interested? Talk to our bookkeepers in Melbourne about getting set up.


3) Good communication skills

Effective communication skills are essential in all types of professions. Tradies know that communicating well with their clients is just as important as building relationships with their suppliers, bankers, and other trade partners.

What does this have to do with bookkeeping? You’d be surprised!

Whether communicating via phone, email or face-to-face setup, tradies should listen well. Being attentive to details is good for customer service and business.

Not to mention, if most of your jobs are coming in through phone calls, then it can also help track payment deadlines and prices too. Good communication skills are especially useful when dealing with loan applications, paying taxes and transacting payables!

 

4) Budgeting skills

Budgets are a big deal. If you’re the type of tradie who does everything by the seat of their pants, we have one piece of advice: don’t!

Every business from start-up small businesses to big established tradies need to know how to create a budget... and more importantly, to stick to it.

Budgets don’t just tell you how to spend your money - they also help you bring down your day-to-day expenses and make accurate cost projections.

Moreover, simple budgeting skills can have a huge impact on help tradesmen make concrete decisions about their spending.

Say you need a new piece of equipment:

  • How much money do you have allocated for occasions like this in your budget?
  • How much are you spending relative to your budget?
  • Is there enough money left over to afford this new gear?


5) Knowing when you need a professional bookkeeper

Sometimes, the best decision you can make is calling it quits on something if it’s become too complicated or you’re struggling to manage it.

Some of us just can’t wrap our heads around the numbers.

In other cases, you mightn’t have the time to spend on bookkeeping between all the jobs you’ve been called out to.

Maybe you straight-up don’t want to do your own bookkeeping and would prefer to spend more time with your family!

In these cases, the best decision you can make is to hire a professional Melbourne bookkeeper to look after your finances.

Maximum Business Solutions are bookkeepers in Melbourne who can take care of all aspects of your business’ bookkeeping. That includes:

  • Payroll solutions
  • Invoicing and debt collection
  • Balance sheets
  • Cloud software implementation
  • Audit preparation
  • Superannuation
  • BAS and IAS statements 

These are just some of the services your Melbourne bookkeeper can offer you. Ask your bookie about a tailored package that accounts for what you need done and how much (or little) of your bookkeeping you’d like to hand over.

 

Need a bookkeeper in Melbourne?

Contact Maximum Business Solutions today!

Can’t keep up with the bookkeeping and accounting demands of your tradie business?

Just like how you’d subcontract to another tradie for jobs you’re not trained in, there’s no reason why you shouldn’t seek expert support from a professional bookkeeper!

Maximum Business Solutions provides bookkeeping services to all types of businesses, regardless of their industry. We specialise in working with modern, driven and enterprising businesses with a turnover of up to $20 million.

Does that sound like your tradie business?

If you’re eager to get back to work and escape the nitty-gritty details of your finances, give the team from Maximum Business Solutions a call today on (03) 9589 0128.

Don’t have time to chat? Fill in this form to arrange a discussion about your tradie bookkeeping needs.