If you run a trade business, you already know cash flow can make or break you. You can be booked out for weeks and still feel like you’re broke by Friday. Sound familiar?
The reality is, most tradies don’t go under because they’re not good at what they do. They go under because they run out of cash.
The good news? With a few simple systems in place, you can take control of your cash flow and sleep better at night knowing the money is where it needs to be—every month, not just during tax time.
Here’s how to get started:
1. Start with a Cash Flow Forecast
You can’t control what you can’t see. A cash flow forecast helps you map out what’s coming in and going out of your business—week by week, month by month.
It doesn’t have to be complex. Start by tracking your expected income (from jobs booked or invoiced) against your fixed expenses like wages, suppliers, rent, insurance, subscriptions, and tools.
This gives you a clear view of your future cash position, so you can spot potential shortfalls before they happen—not when your account’s already in the red.
🔧 Tip: A good forecast helps you make smarter decisions, like when to schedule jobs, buy equipment, or hold back on spending.
2. Set Up Separate Bank Accounts (And Use Them Properly)
This one’s simple—but powerful. If you’re operating everything out of one bank account, it’s almost impossible to know what money is actually yours to spend.
We recommend tradies set up separate accounts for:
– BAS, PAYG & Super: Put a percentage aside from every job.
– Income Tax: Avoid the end-of-year panic by putting money away all year.
– Profit or Reserve Account: Pay yourself first—even if it’s small to start.
Every time you get paid, split the funds between your accounts based on your plan. That way, you always know what’s “spoken for”—and what’s safe to use.
🔧 Tip: Automate your transfers each week. Out of sight, out of mind.
3. Get Paid Faster (And Stop Being the Bank for Your Clients)
A big reason tradies struggle with cash flow is because they’re waiting too long to get paid.
Start by tightening up your invoicing process:
– Invoice as soon as a job is done—or even in stages during the job.
– Use software that lets clients pay online.
– Send reminders automatically for overdue invoices.
Also, make sure your payment terms are clear upfront. And don’t be afraid to chase payments—your business depends on it.
🔧 Tip: Offer small discounts for upfront payment or use progress payments on longer jobs.
4. Know Your Numbers: Are You Actually Making a Profit?
Getting paid isn’t the same as being profitable. You might have $50k in the bank this month—but if your materials, wages, and tax wipe that out, you’re just treading water.
That’s why it’s critical to know:
– What it costs to run each job
– What your breakeven point is
– Whether each job is actually making you money
This is where solid bookkeeping and job tracking systems come in. They give you the visibility to adjust your pricing, fix leaks, and build a sustainable business—not just a busy one.
5. Don’t Do It Alone—Build a Support System
Cash flow is the lifeblood of your business. But managing it properly isn’t just about spreadsheets—it’s about having the right support.
At Straight Talk Accountants, we help trade business owners like you:
– Build cash flow forecasts that actually work
– Set up simple, smart banking systems
– Understand your real numbers
– Keep your tax under control
– Grow your profit and your wealth
Ready to Take Control of Your Cash?
If you’re sick of riding the feast-or-famine rollercoaster, we’re here to help.
👉 Book a free discovery call and let’s talk about where your cash flow is at—and how to get it sorted for good.
Please Note: Many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances.
