A common issue with a lot of tradespeople (tradies) is dealing with the horror of the business administration aspect of their business. After spending the day taking care of clients, the last thing you want to do is come back to the office to deal with bookkeeping tasks.
From working with tradies in various industries and helping them with their bookkeeping we know how difficult it can be to find simple software to generate invoices. We have some recommendations that we will discuss later.
Bookkeeping for tradies can be a daunting task. Most of their jobs are not straightforward since there are usually several components involved like labour components, purchased materials, and contracted jobs—all of these are invoiced at different times.
Here are some ways that you, as a tradesperson, can take control of your bookkeeping and make your paperwork less complicated.
- Use Job Numbers
Give each job a unique job number. Train your employees and contractors to use the correct job number on purchase orders and work orders. Assign the correct job number to purchases and contractors when entering them into your accounting software like Quickbooks or MYOB. You should always enter your employees’ timesheets into Quickbooks, MYOB or whatever other accounting programs you decide to use with their scheduled hours posted to the job numbers they worked on during the week. When it is time to bill clients, you would just need to pull up a report for each job number. This will give you the total cost for that job. All you would need to do then is calculate your mark up rate and invoice the client.
- Create a Positive Paperwork Workflow
Paperwork can be a pain in the neck if it ever gets out of control. Creating simple paperwork routines will allow you to stay on top of your paperwork. You can keep a file folder in your car to store all purchase orders, invoices and receipts. Also, you can train your staff to collect and turn in paperwork when making purchases. Additionally, you can ask staff to submit their timesheets before payday. All purchases should be posted to your accounting software, Quickbooks, MYOB or something similar, on a regular basis. A positive workflow will help you to stay in control of your paperwork.
- Use Job Costing Software
You can speed up the job invoicing process by using job costing software. Job costing software can simplify the bookkeeping tasks for tradies. Most Job Costing Software tracks the time and purchases for each completed job. Employees can enter the time they spend on each job through their smartphones. Then, it will calculate your mark up for purchases and time when you are ready to bill your clients. Ideally, you want software that can be linked seamlessly with Xero Accounting or another bookkeeping software.
Assisting with business tax deductions is not the only service that accountants can provide. At Darcy Bookkeeping and Business Services, we offer a wide range of financial services needed by tradies. We provide our clients with advanced software installation in addition to regular bookkeeping and accounting services. We can customize our bookkeeping services to make sure that your business is a tax compliant and that the normal functions of your business occur with the least cost or effort.
MYOB Bookkeeping Services
Our MYOB Bookkeeping services are customized for your business. We understand that several factors make each business unique and these need to be considered when creating a bookkeeping system for your company. We use MYOB AccountRight, MYOBAccountEdge and MYOBEssentials. Here is a summary of our services:
How Our MYOB Bookkeeping can assist you:
Using these ideas along with our bookkeeping services and accounting software, bookkeeping for tradies can be simplified and made manageable. If you would like us to help you simplify your bookkeeping system please contact us today for an assessment of your bookkeeping needs.
- We can become your accounts department taking care of the day to day bookkeeping for your company
- Our MYOB Bookkeeper can train your staff to use MYOB and we will also provide ongoing support.
- We can install and customize MYOB support for your business needs
- Our Bookkeeping specialists can advise you on the best version of MYOB software for your particular business.
As a tradesman, having additional burdens such as your tax responsibility can hinder you from doing what you do best. Let us help you handle your bookkeeping tasks and spend more time on your craft!