You’ve just wrapped up a job. The quote was solid, the team smashed it out, and according to your numbers—you made a tidy profit.
But when you check your bank account, the money just isn’t there.
If you’ve ever asked yourself, “Where’s the money gone?”—you’re not alone. This is one of the most common (and frustrating) problems trade business owners face.
So let’s unpack what’s really going on.
Profit Isn’t the Same as Cash
Here’s the number one thing to understand: just because a job is profitable on paper, doesn’t mean you’ll see the cash in your account—especially not right away.
That’s because profit and cash are two very different things:
|
Profit |
Cash |
|
Based on invoices issued |
Based on money received |
|
Includes jobs completed but not yet paid for |
Includes what’s actually hit your bank |
|
Can include future income or expenses |
It’s possible (and common) to have a profitable business on paper that’s cash poor in reality.
Here’s Why Your Bank Balance Might Be Low (Even If You’re Profitable)
- You Haven’t Been Paid Yet
Your job might be done, but if the client hasn’t paid—or is dragging their feet—then the cash isn’t yours yet.
💡 Tip: Speed up your invoicing and make it easy for clients to pay. Consider stage payments for larger jobs.
- You Paid All the Costs Upfront
Materials, subcontractors, fuel, wages—most of it is out of your pocket long before the final invoice is paid.
If your cash outflows are way ahead of your inflows, your bank balance takes the hit even if the job is profitable.
💡 Tip: Collect deposits before starting, use progress payments, and stay cash-positive on jobs wherever possible.
- You’re Paying Off Debt
Loan repayments, credit card balances, or ATO payment plans all reduce your cash—even though they don’t appear as expenses on your profit and loss statement.
💡 Tip: Include debt repayments in your cash flow forecast, so they don’t catch you off guard.
- You’re Reinvesting Too Heavily in the Business
Buying new tools, vehicles, or taking on new staff might help long-term—but it will also drain your cash in the short term.
💡 Tip: Plan capital purchases carefully and make sure the timing lines up with your cash flow.
- You’re Not Putting Tax Aside
Your profit figure includes what you owe the ATO—but that money’s still sitting in your account… until it isn’t.
If you haven’t been setting money aside for BAS, PAYG and tax, you can get caught short when the bill lands.
💡 Tip: Use a separate account to put aside tax money every week.
How to Get in Control
Getting control of your cash starts with visibility. You need to know:
- Which jobs are making money (and which aren’t)
- When money is actually hitting your account
- What expenses are coming up
- How much to set aside for tax, wages, and bills
The best way to do that? A cash flow forecast and job margin tracker. They show you what’s coming in, what’s going out, and where the gaps are—before they become problems.
Your Profit is a Plan—Your Cash is Reality
If there’s one lesson for every tradie to learn, it’s this:
You don’t go broke because of lack of profit.
You go broke because of lack of cash.
That’s why at Straight Talk Accountants, we work closely with trade business owners to help them understand their numbers, manage their cash, and grow their business sustainably.
👉 Download our 21-Step Tradie Success Checklist or book a free intro session to see how we can help.
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.
