Ask any tradesman what the worst thing is about running a business, and many will tell you it’s the paperwork.
No matter what business you’re in, paperwork is a killer when it comes to getting the job done and bringing in the money.
For this reason alone, passing all of your bookkeeping work on to a qualified bookkeeper should be an easy decision to make.
But let’s take a look at all of the reasons why a tradie should use a bookkeeper.
Time & Money
Completing your Business Activity Statement (BAS) each quarter can be incredibly time consuming, especially if you don’t touch your accounts in-between quarters.
Why spend a whole day pulling your hair out at the dining room table when you could be out there making money?
A bookkeeper will typically charge a sole trader around $300 per quarter do look after your accounts and complete your BAS.
If you earn more than $300 a day whilst on the tools, then you’re mad if you’re still doing your own accounts rather than using a bookkeeper.
Calculating GST and completing the BAS is relatively straightforward for a tradesman, but there will often be little things that crop up which are slightly out of the ordinary.
The right thing to do in this case is to research and find out exactly how the transaction should be treated for tax and GST purposes.
Often this doesn’t happen however, and you’ll just push it through based on what you think the right way is, or simply what you think is the closest option is.
You might get away with this for a while, but if your accountant discovers the error – or worse, the ATO discovers the error – you could find yourself dealing with an even bigger issue.
But when you rely on a bookkeeper to manage your accounts and complete your BAS you can be confident that they are doing everything properly.
Sure it might cost you more upfront to use a bookkeeper for something you could have done yourself, but it could save you a whole lot more down the track.
As a tradesman you’ll know firsthand the dangers of unqualified people taking on DIY jobs around their home.
Sometimes they’ll be fine, but sometimes they just cause a lot more trouble and it ends up costing the person more to have work fixed by a qualified tradesman.
The same is true for your bookkeeping. Don’t risk taking the DIY approach. Trust a registered BAS agent to look after your books.