Trade bookkeeping
Bookkeeping for trades businesses: what actually matters
Job costing, progress claims, TPAR, retention — the bookkeeping tradies actually need.
Quick answer
The short version
Good bookkeeping for a trades business comes down to four things: job-level costing (labour plus materials per job), progress-claim invoicing that matches cash flow, contractor payments tracked for the annual TPAR, and keeping business spending clearly separate from personal. Most trade businesses pay $299–$899 a month for done-for-you bookkeeping that covers exactly this.
The problem
Why generic bookkeeping fails tradies
A standard profit and loss tells a plumber or builder almost nothing useful. It shows total revenue and total expenses — but not which jobs made money and which ones quietly lost it. That's the core failure: trade businesses don't have a bookkeeping problem, they have a job-visibility problem.
Deposits and progress payments distort everything. A 10% deposit hits the bank in March for a job finished in May. On a cash basis the business looks profitable in March and terrible in May. Without job-level tracking, the monthly numbers are noise.
Materials purchasing is high-volume and messy. Reece, Tradelink, Bunnings Trade — supplier statements, mixed personal-trade purchases, and materials bought for three jobs on one invoice. If it's all coded to "materials", you'll never know your true job margins.
The ute problem. Fuel, rego, insurance, repairs — the work vehicle is often the business's biggest expense after wages, and it's routinely mixed with personal use. Without a logbook or a clear method, deductions get estimated at tax time instead of evidenced through the year.
The systems
The four systems that matter
1. Job costing. Every job gets a code. Labour hours, materials, and subcontractor costs are recorded against it. At job end: actual cost vs quote. This single discipline is what separates tradies who raise prices confidently from those who work harder for the same money. Xero Projects, MYOB, or Simpro integrations all handle it — the software matters less than the habit.
2. Progress claims and retention. Larger jobs invoice in stages — deposit, progress claims, final claim. Retention (commonly around 5%) may be held back until defects liability ends. Your books need to track what's been claimed, what's been paid, and what's retained — otherwise cash flow surprises you.
3. Contractor payments and TPAR. If you're in building and construction services, the Taxable Payments Annual Report (TPAR) requires you to report payments to contractors each financial year, due 28 August. That means every subcontractor payment must be recorded with their ABN through the year — not reconstructed in August. Your bookkeeper maintains the data; your accountant or tax agent lodges the report.
4. Clean separation. Business bank account, business card, and a rule: nothing personal goes through the books. The five minutes saved by putting fuel on the business card costs hours at year-end and weakens every deduction.
Mistakes
The expensive mistakes we see most
No job costing, then underquoting. Without actual job costs, quotes are built on gut feel. One bad habit compounds: you win more work at margins that don't cover overheads, and the P&L only reveals it months later.
Paying subcontractors without checking ABNs. If a subcontractor doesn't quote an ABN, you must withhold 47% from the payment and send it to the ATO. Check every new subbie on ABN Lookup before the first payment — it takes 30 seconds.
Cash accounting with big work in progress. Cash basis plus multi-month jobs equals financial statements that mislead. If your jobs span quarters, talk to your accountant about whether accrual suits you better.
Apprentice and labour-hire payroll drift. Apprentice wages, training incentives, and labour-hire invoices each have quirks. When payroll is "done when there's time", STP errors and super shortfalls follow.
Receipts in the ute. Materials receipts photographed never, supplier statements unreconciled, and a shoebox presented at tax time. A bookkeeper reconciling monthly eliminates the entire ritual.
Choosing
What to ask a trade bookkeeper
Not every bookkeeper understands trade workflows. Before you sign, ask: Do you set up job costing? Have you worked with construction clients and TPAR? Can you integrate with Simpro, Aroflo, or Xero Projects? A yes to all three is the difference between a bookkeeper who reconciles and one who actually helps the business.
On price: most trade businesses land on bookkeeping packages between $299 and $899 a month depending on transaction volume and whether payroll is included. Businesses running multiple crews or high subcontractor volumes usually need the higher tier — and often a dedicated bookkeeper once the workload passes 20 hours a week. Full pricing is published here.
Related reading
Keep going
- Offshore bookkeeper vs local hire — the real cost comparison.
- What does outsourced bookkeeping actually include? — the monthly deliverables checklist.
- Bookkeeping packages — $299/$499/$899 tiers explained.
- All FinanceDesk pricing — every package and add-on, published.
FAQ
Trade bookkeeping questions
What is TPAR and does my trade business need to lodge it?
The Taxable Payments Annual Report applies to building and construction services businesses. It reports payments to contractors each financial year and is due 28 August. Your bookkeeper tracks contractor payment data through the year; your accountant or tax agent lodges the report.
Should tradies use cash or accrual accounting?
Cash accounting is simpler and suits smaller jobs paid on completion. Accrual suits larger jobs, work in progress, or progress claims spanning months — it matches income to when it's earned. Your accountant should confirm which basis suits your structure.
What happens if I pay a subcontractor who has no ABN?
You must withhold 47% from the payment and remit it to the ATO. Check every subcontractor's ABN on the ABN Lookup before the first payment — a 30-second check that avoids an expensive mistake.
How do I track profitability per job?
Job costing: labour, materials and subcontractor costs are coded to each job in your accounting software (Xero Projects or equivalent). At job end you compare actual cost to the quote — that number tells you whether to raise prices.
Can a bookkeeper lodge my BAS?
Only a registered BAS agent can lodge BAS. A bookkeeper prepares BAS-ready ledgers from your reconciled books, and your BAS agent or accountant handles lodgement.
Trade bookkeeping that tracks every job.
Job costing, TPAR-ready contractor records, and payroll — from $299 a month.
Response within 1 business day.