Xero Bookkeepers Specialising in Builders and Tradies in the Construction Industry
We are specialist Builder and Tradie Bookkeepers providing Xero bookkeeping for tradies such as builders, construction workers, electricians, plumbers, roofers, etc. We work virtually from our office based on the Northern Beaches of Sydney.
We understand how being a bookkeeper for tradies and builders plays a vital role in their business success.
Our current clients include a number of builders plus electricians, plumbers, roofers, plasterers, garden maintenance businesses, water sealer, etc. all in the building and construction industry.
Basic Bookkeeping for Tradies and Builders
What is Bookkeeping?
Bookkeeping involves recording and classifying all the financial transactions in your business. It is keeping track of what your business spends and what your business receives. It gives you an understanding of how your business is performing on a current basis if kept to date so you can make informed decisions.
What is the Best Accounting Software for Tradies and Builders?
What software should you be using for your accounting? We recommend Xero accounting software because it is cloud based accounting and it easy to use once you get started and you can use it on your smart phone or tablet if you wish to. Xero works really well for quoting and invoicing.
Do you still need a Bookkeeper if you are using Xero?
Xero accounting software is a great new software program designed to make bookkeeping easy for small or mid size businesses in Australia and all around the world. The problem is not everyone has the time to code off and reconcile their transactions in Xero on a regular basis, especially small business owners who are working in their business all day. The last thing they need is to do bookkeeping at night. Bookkeepers can help relieve that stress, they can code off and reconcile your accounts on a regular basis, making sure the ledger account and GST are correct, then use this information to prepare and lodge your monthly or quarterly Business Activity Statement or BAS accurately and on time.
What is the difference between a Bookkeeper and an Accountant?
A bookkeeper gathers and records information on a regular basis. A bookkeeper can highlight any areas of concern quickly. A bookkeeper provides reporting on your business finances in real time so you can make informed business decisions based on current information and data. A bookkeeper and Registered BAS agent prepares and lodges Business Activity Statements, Income Activity Statements, sets up new employees, runs regular payroll, organises superannuation payments, year end STP finalisation and annual workers compensation actual wages declaration reporting.
An accountant assists with setting up your business in the best possible structure for tax planning. An accountant prepares your year end income tax returns and financial reporting for ASIC and the ATO. An accountant analyses your data and provides financial planning and advice.
Why is a bookkeeper important for tradies?
It is important to have a bookkeeper to assist with processing your paperwork, making sure your BAS and other ATO compliance are taken care of accurately, efficiently and on time. This will allow you to make important, informed decisions based on accurate and up to date financial information.
What is a chart of accounts?
You may have heard of a chart of accounts. Simply put it is a list of accounts or categories where you classify or code your transactions to like a journal or a diary so that you can produce meaningful reports.
What is a Profit and Loss?
A Profit and Loss statement is used for businesses to understand how their business is performing over a certain period of time usually in comparison to a previous period of time. By doing this, the business owner can take action if needed to bring their business back on track or make necessary changes in preparation of future trends.
What is a Balance Sheet?
A Balance Sheet should show a true financial position of your business and your equity in the business at any set point in time. It shows your assets (anything you may get money for) and your liabilities (anyone you owe money to) and the balance should represent the equity or net worth of your business.
What paperwork does a tradie or builder need to keep and for how long?
Do you currently have a pile of receipts or invoices sitting in your glove box fading away? You do need to show the ATO a valid tax invoice for any deductions or GST claimed up to a five year period if you get the pleasant surprise of an ATO audit. It is not good enough to produce your bank statements or visa card statement showing the transaction. A valid invoice needs to show the supplier’s name, ABN and most importantly a description of the services provided or the goods purchased. If they are registered for GST, their invoice needs to state it is a tax invoice and show the GST amount.
Is it Worth Paying a Bookkeeper?
A good bookkeeper can help you to save time and energy on your bookkeeping and organise your paperwork so it is easy to keep track of.
They can save you ATO fines and penalties by making sure that all of your BAS and other ATO compliance is prepared and lodged on time.
You get to focus more on your business and the day to day operations whilst your bookkeeper does the back end accounting and bookwork to keep your accounts up to date.
You get to make informed business decisions based on current up to date financial information.
How Much Does a Bookkeeper Cost?
We offer fixed price bookkeeping packages where you are invoiced once a month so you are covered for all your bookkeeping and ATO compliance so you don’t get any nasty surprises.
A good Bookkeeper is an investment in the growth of your business
What job management software is good for tradies to manage jobs?
What is a Taxable Payments Report?
If you are in the building or construction industry, you need to report all payments made to subcontractors throughout the year to the ATO at the end of the financial year by preparing and lodging a taxable payments report.
Is your Subcontractor a Subby or a Deemed Employee?
This is a very grey area in some circumstances however the ATO are clamping down on businesses paying subcontractors through their ABN even though they would be deemed an employee under Fairwork and the ATO definitions. Deemed employees need to be paid superannuation directly to their superannuation funds, it can’t be included in your subbie’s hourly rate. Deemed employees also need to be included in your year end Icare actual wages declaration and annual payroll tax return if applicable.
You may want to visit the ATO’s website for more information on the link below.
How much do you need to pay for GST and BAS?
How much should you be putting away for your GST, PAYG (tax taken out of employees pays) and your tax so you have the funds to pay your liabilities? Northern Beaches Bookkeeping Solutions can help with all the answers to these questions.
PAYG Instalments or Income Tax Instalments and how they work for Small Business
Don’t get caught out with a huge tax bill in your first year in business as a tradie or builder.
Paying quarterly PAYG Instalments towards your year end income tax means you do not end up with a huge tax bill. It is great that you are out on your own earning money and the bank account is looking good but don’t forget about your year end income tax or Company tax.
Unfortunately, we have seen a few sole traders such as tradies get caught in their first year of trading because they just didn’t understand the whole GST and income tax system. Don’t let this happen to you.
We Can Help with All of the Above
Book Your Free No Obligation Consultation or Give Us a Call.
Get Your Accounts in Order!
What are You Waiting For!
What does a tradie do with all of those fading receipts sitting in their glove box?
The best piece of advice we offer all our tradie clients is to work with Dext to take care of their mounting pile of paperwork. We will set you up on Dext which is a fantastic Xero add on.
It is a really simple process, all you need is a smart phone and you download the app. This allows you to take a photo of a receipt for some supplies you have just purchased, you don’t need to write in what it is for as we can see what it is for as we will see the receipt. You don’t need to say which bank account you have used to pay for it either, you just hit save. From there, we do all of the processing from coding it off in Receipt Bank, pushing it across to Xero where it then becomes a bill with the receipt attached for you or your accountant to see at any time down the track.
This is great in the unlikely event of a tax audit as all of your paperwork is attached, still easy to read, not in a shoebox or filed somewhere else.
Check out how easy Dext is to use: https://share.vidyard.com/watch/YSoapa5fneMtmfRCKxZaBA?
We prefer to use Dext and the good news is it is is included in our set monthly bookkeeping fee packages. We do all of the setting up for you and send you the links to get started.
Xero Set Up, Customisation and Training for Tradies Sydney
We can set you up on Xero accounting software so that you can start taking control of your bookkeeping so you aren’t staying up late after a hard day on the tools. We know how hard tradesmen work.
We set up Xero from the beginning, show you the back end of Xero and give you training and support until you are confident to take over.
If you prefer, we can take care of all your bookkeeping and BAS requirements.
You may be pleasantly surprised at our set monthly package pricing, we do the books whilst you concentrate on what you do best, being a good tradie.
Fixed Price Xero Bookkeeping Packages for Builders and Tradies
We can take care of all of your bookkeeping and BAS starting from as little as $299 per month plus we will make sure everything is ready for your accountant or tax agent at year end.
Cloud Software and Xero Add-Ons for Tradies
Job Management and Quoting Software for Tradesmen
Do you need software to manage your jobs? Our tradies use Harvest, Tradify and ServiceM8. You may want to check them out to see if one of them is better suited to your needs. These all integrate with your Xero accounting software.
Dext for Tradies and Builders
You will be surprised how easy the whole Xero bookkeeping process can be. We use Receipt Bank or Dext so you can take a quick photo on your phone or email through any bills or receipts for us to process and attach to your transactions in Xero.
We will set Dext up for you and send you the instructions so you can be using it easily in no time.
Best of all, we include Dext as part of your set monthly fee bookkeeping package.
What happens next? How do you come on board with your new bookkeeper? It is an Easy Process!
- Contact us for your free no obligation consultation
- We send you instructions to invite us into your current Xero datafile
- We agree on a set price bookkeeping package & send out a proposal and a few forms to get started
- You may want to let your former bookkeeper/accountant know about the changeover if applicable
- We set you up on Dext to gather your paperwork easily
- We take care of your bookkeeping on a regular basis and other compliance as it falls due
- You get to concentrate on running your business or spending quality time with your family or friends.
GET STARTED NOW