Written By
Drue Schofield
Managing Director – Growth & Strategy
4Front | www.4front.net.au
Written By
Drue Schofield
Managing Director – Growth & Strategy
4Front | www.4front.net.au
Running a successful trades or construction business isn’t just about being good on the tools – it’s about being smart in the back office too. Whether you’re a sparky, plumber, builder or landscaper (or any other trade, for that matter), your ability to grow profitably comes down to more than just the number of jobs you take on. It’s about how well you manage your money, forecast cash flow, and track your numbers in real time.
Managing Director Drue Schofield with 4Front Team – Growth & Strategy | 4Front Accountant and Advisers | www.4front.net.au
Managing Director Drue Schofield with 4Front Team – Growth & Strategy | 4Front Accountant and Advisers | www.4front.net.au
At 4Front, we work closely with Aussie trades and construction business owners to turn their financial confusion into Financial Clarity. Here are our Top Accounting Tips to help you Maximize Profits and stay in control of your growing business.
1. Job Costing Is Non-Negotiable
If you’re not tracking the true cost of each job, you’re flying blind. Materials, subcontractors, labour, equipment hire, even the time you spend quoting – it all needs to be allocated properly.
✅ Pro Tip: Use a job costing system that syncs with your accounting software (like Xero + WorkflowMax, SimPRO, or Fergus). Know exactly how much each job makes you – or costs you.
2. Keep Your Books Clean and Current
Messy books = poor decisions. If your financials are months behind, you’re reacting instead of planning. Accurate, real-time bookkeeping gives you the power to manage cash flow, quote profitably, and stay compliant.
✅ Pro Tip: Invest in a qualified bookkeeper who understands trades and construction. Better yet, have a proactive accountant or advisor (like us) reviewing things quarterly.
3. Understand Your Margins – And Don’t Be Afraid to Adjust Your Pricing!
Many trades undercharge because they don’t understand their true overheads. If you’re quoting based on what competitors charge or just “what feels fair,” you’re likely leaving significant money on the table.
✅ Pro Tip: Work with your advisor to calculate your real break-even rate and target margins. Review your pricing at least quarterly – costs change, and so should your rates.
4. Don’t Let GST and PAYGW Catch You Out
Too many business owners fall into the trap of spending money that was never theirs. GST, PAYG, and super are all trust monies – and the ATO doesn’t mess around.
✅ Pro Tip: Use ‘cash buckets’. Open separate tax savings account and each week, transfer 15–20% of your income to cover GST, BAS, and PAYG. It’s basic, but it works.
Written By
Drue Schofield
Managing Director – Growth & Strategy
4Front | www.4front.net.au
Australia and New Zealand’s #1 Business Coaching and Advisory Organisation, dedicated to the Trades and Construction Industry. With over 20 years of practical experience, we have a proven track record of helping more than 3900 business owners gain greater clarity, consistency and choice.
Australia and New Zealand’s #1 Business Coaching and Advisory Organisation, dedicated to the Trades and Construction Industry. With over 20 years of practical experience, we have a proven track record of helping more than 3900 business owners gain greater clarity, consistency and choice.
5. Automate What You Can – And Stay on Top of Debtors!
Time is money, and manual admin burns both. The more you automate quoting, invoicing, and follow-ups, the more time you have to focus on actual billable work.
✅ Pro Tip: Set up automatic invoice reminders. Send progress claims quickly. And be ruthless with chasing slow payers – cash flow is king.
6. Forecast Cash Flow (Especially in Downtimes)
Trades businesses often ride a boom-bust cycle. One month you’re flat out, the next you’re wondering how to pay wages. That’s where forecasting comes in.
✅ Pro Trip: Use a rolling 13-week cash flow forecast to stay ahead. It’ll show you when to chase jobs, tighten spending, or line up finance – before things get tight.
7. Talk to an Advisor Who Gets Your Industry
A good accountant ticks the boxes. A great business advisor helps you build wealth, not just do tax. At 4Front, we partner with trades and construction clients to help them Plan, Grow & Succeed by scaling, and eventually stepping back when the time is right.
✅ Pro Tip: Don’t settle for reactive compliance work. Look for proactive advice around profit improvement, tax strategy, team structure, wealth creation and succession planning.
Final Word
You work hard. You deserve to be making solid profits and investing for retirement, not just endlessly paying everyone else and taking home ‘what’s left’. With the right systems, team, and advice around you, running a trades or construction business can be both profitable and enjoyable.
Thanks to our partner, 4Front for this insightful article. If you would like to learn more about the team at 4FRONT, connect with them here: https://4front.net.au/
5. Automate What You Can – And Stay on Top of Debtors!
Time is money, and manual admin burns both. The more you automate quoting, invoicing, and follow-ups, the more time you have to focus on actual billable work.
✅ Pro Tip: Set up automatic invoice reminders. Send progress claims quickly. And be ruthless with chasing slow payers – cash flow is king.
6. Forecast Cash Flow (Especially in Downtimes)
Trades businesses often ride a boom-bust cycle. One month you’re flat out, the next you’re wondering how to pay wages. That’s where forecasting comes in.
✅ Pro Trip: Use a rolling 13-week cash flow forecast to stay ahead. It’ll show you when to chase jobs, tighten spending, or line up finance – before things get tight.
7. Talk to an Advisor Who Gets Your Industry
A good accountant ticks the boxes. A great business advisor helps you build wealth, not just do tax. At 4Front, we partner with trades and construction clients to help them Plan, Grow & Succeed by scaling, and eventually stepping back when the time is right.
✅ Pro Tip: Don’t settle for reactive compliance work. Look for proactive advice around profit improvement, tax strategy, team structure, wealth creation and succession planning.
Final Word
You work hard. You deserve to be making solid profits and investing for retirement, not just endlessly paying everyone else and taking home ‘what’s left’. With the right systems, team, and advice around you, running a trades or construction business can be both profitable and enjoyable.
Thanks to our partner, 4Front for this insightful article. If you would like to learn more about the team at 4FRONT, connect with them here: https://4front.net.au/
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