You’re flat out all week, running from one job to the next. The invoices go out, the payments trickle in, and you should be rolling in it — but somehow, by the end of the month, the bank balance looks thin again.
Sound familiar?
You’re not the only one. Most self-employed tradies I talk to say the same thing:
“I make good money, but I never seem to have any left.”
That’s not because you’re bad with money — it’s because no one ever taught you how to manage cashflow.
You learned your trade on the tools, not in an accounting class. But here’s the truth: if you can measure and plan your cashflow, you can control your business instead of letting it control you.
What Cashflow Really Means (and Why It’s Not Just About Cash)
When people hear “cashflow,” they picture physical cash. But in business, cashflow simply means how money moves in and out of your accounts.
Think of it like fuel in your ute.
You might own the best gear in town, but if there’s no fuel in the tank, you’re not going anywhere. Your business is the same — you need a steady flow of money coming in faster than it goes out.
Cash inflows are your job payments, invoices, and refunds.
Cash outflows are your materials, suppliers, tax, wages, insurance, and fuel.
If you’re not tracking how much fuel’s in the tank, it’s no wonder you’re running on empty.
The Common Mistake That Drains Every Tradie’s Account
Here’s where most tradies go wrong: they mix business and personal money.
They use the same bank account for everything — paying for materials one minute and grabbing takeaway the next.
At first, it seems easier. But come BAS time, the ATO wants their share, and you’re staring at a bill with no money set aside.
Then you’re dipping into credit cards or borrowing from family, and the cycle starts again.
This isn’t bad luck — it’s just a lack of system.
To stop the chaos, all you need are three simple bank accounts:
- Main Business Account: where all client payments go and all business expenses come out.
- Tax / GST Account: where you transfer 25–30% of every payment for tax, GST and BAS.
- Personal Account: where you pay yourself a set “wage” each week, just like any employee.
This setup separates your business from your personal life. It also removes the guesswork — you’ll always know what’s safe to spend and what belongs to the tax man.
Knowing Your Numbers — Without Losing Your Mind
Numbers can feel overwhelming if you’re not a “money person.” But once you start tracking where your money goes, it’s like flicking a light on in a dark room.
Cloud-based software like Xero, MYOB, or QuickBooks makes it dead simple.
You connect your bank feeds, and it automatically tracks income, expenses, and GST.
All you have to do is check in once a week to see what’s really happening.
Even just 15 minutes a week reviewing your Profit & Loss report can show where the leaks are — maybe a supplier’s overcharging, or you’ve got a slow-paying customer holding up cash. Once you see the pattern, you can fix it.
Smoothing Out the Peaks and Valleys
Every tradie knows business comes in waves.
One month you’re swamped, the next it’s quiet.
If you don’t plan for the dips, the good months will never make up for the bad ones.
The answer is simple: build a cash buffer.
Think of it like your business’s emergency fund.
Set aside enough money to cover six to eight weeks of expenses — things like rent, mortgage, loan repayments, insurance, and groceries.
That way, if a client delays payment or you get injured, you won’t have to panic.
Even putting aside a small amount each week — say $100 or $200 — adds up fast.
Make it automatic so it happens without you thinking about it. That’s the trick: make good habits easy.
Controlling the Flow — Not Just the Amount
Here’s something most business owners forget: even a profitable business can run out of money if payments come in too slowly.
You might finish a $10,000 job today, but if the client pays in 45 days and your supplier’s due next week, you’re in trouble.
To fix that:
- Invoice immediately when the job’s done — not days later.
- Set clear payment terms, like 7 or 14 days, and follow them up.
- Use card payments or instant pay links so clients can pay on the spot.
- For bigger jobs, ask for progress payments along the way.
If you’re still stuck waiting for cash to land, there are tools like invoice factoring (where a lender fronts you most of the invoice value early).
Just be careful — use it only with advice from a trusted finance broker so you don’t pay more in fees than you gain in cashflow.
When to Use “Your Money” vs “Other People’s Money”
Here’s something you might not expect from a finance bloke: not all debt is bad.
Some loans can actually make your business stronger — if you use them right.
Use your money for short-term things like fuel, materials, or wages.
But for big-ticket items — like a new ute, excavator, or piece of machinery — finance it over time.
That way, the asset pays for itself as it earns income.
Experts golden rule:
Any asset you finance should earn at least three times its repayment amount in revenue.
If it doesn’t, you’re better off waiting or paying cash.
The Real Cash Killer: Undercharging
Even with all the systems in the world, you’ll never have good cashflow if you’re underpricing your work.
Too many tradies quote low to “win the job,” then end up working weekends just to stay afloat.
That’s not sustainable — and it’s not fair to your skill.
When you quote, make sure you include:
- Your time (including travel and admin)
- Materials and overheads
- Superannuation contributions
- Insurance costs
- A profit margin (you’re a business, not a charity)
Even a 10% price increase can make a massive difference to your bottom line — often more than cutting costs ever could.
Planning for the Tax Man
There’s one person who always gets paid — the ATO.
Instead of dreading tax time, plan for it.
Each time you get paid, transfer a percentage (usually 25–30%) into your Tax Account.
That way, when BAS or income tax is due, you’ll already have the money sitting there waiting.
No surprises, no scrambling, no panic.
Cloud accounting tools will automatically calculate GST and track your PAYG obligations.
When tax time rolls around, it’s just another day at the office.
Smart Tools for Smart Tradies
If you’ve still got a shoebox full of receipts, it’s time to modernise.
Here are a few apps I recommend to clients:
- Xero – simple, clean, and perfect for small trade businesses.
- MYOB Business – great for payroll and ATO compliance.
- QuickBooks Online – top choice for mobile invoicing and expense tracking.
- Hubdoc or Dext – snap a photo of your receipt and it’s stored instantly.
Once you go digital, you’ll never go back. You’ll save hours each week and have real-time visibility of where your money’s going.
Building the Right Habits
Cashflow management isn’t a one-time task; it’s a habit.
Here’s what a healthy weekly routine might look like:
- Monday: Check who still owes you money and send a friendly reminder.
- Wednesday: Pay suppliers and move GST money to your tax account.
- Friday: Review balances, plan next week’s expenses, and shout yourself a coffee.
That’s less than an hour a week to stay in total control.
And once you get into the rhythm, it becomes as natural as checking your phone.
Why Getting Help Isn’t a Weakness
Even the best tradies don’t build a house solo — they bring in sparkies, plumbers, and chippies.
Running your business is no different.
If you want to level up your finances, surround yourself with the right crew:
- A bookkeeper or accountant to keep your records clean.
- A finance broker (like The Finance Shed) to help with loans and equipment funding.
- A financial planner to help grow your wealth and protect your family.
You’re still the boss — but now you’ve got experts helping you make better decisions.
Summary : Get Your Money Flowing Right
Running a trade business isn’t just about the tools — it’s about keeping the fuel (cash) flowing.
With a few simple systems — separate accounts, digital bookkeeping, regular reviews — you can go from stressed to steady in just a few months.
At The Finance Shed, that’s exactly what we help tradies do: build smarter systems, make better money decisions, and take control of their financial future.
So if you’re ready to stop running out of money every month and start running your business with confidence, it’s time for a chat.