For a tradie, being "flat out" is usually seen as a badge of honour. But in our 30 years as accountants for tradies in Newcastle, we’ve seen that being busy doesn't always equal being profitable. Many hardworking business owners in the Hunter Valley find themselves with a full diary but a struggling bank account due to small, avoidable financial leaks.
Whether you are a sole trader or managing a large crew, mastering your bookkeeping is just as important as mastering your tools. Here are the six most common money mistakes we see—and the Hillier's guide to fixing them.
If your receipts are faded in the glovebox of the ute, you don’t have a clear picture of your profit. Poor bookkeeping makes it impossible to track cash flow or prove your income when it’s time to apply for a new equipment loan. It also means you’re likely missing out on valid tax deductions.
The Fix: How can you keep better track of your business records? To maintain accurate records, you must move to the cloud. We recommend using Xero integrated with an app like Dext or Hubdoc. By snapping a photo of every receipt immediately, your bookkeeping stays automated, ensuring you have total clarity, control, and confidence in your financial decisions.
One of the biggest pricing mistakes a tradie makes is under-valuing their own time. Many owners only factor in materials and subbie wages, forgetting to bill for their own expert labour and the time spent on quotes and management.
The Fix: How do you factor your own time into quotes? Treat your time as a non-negotiable cost. Use a dedicated quoting app like Tradify, ServiceM8, or SimPro. These tools ensure that every hour spent on-site or in the office is accounted for. When your tradie business quotes accurately, your pricing finally reflects the true cost of running a professional operation in New South Wales.
Quoting a job is only half the battle. Without comparing your quoted price to the actual cost of completion, you’re just guessing at your profit. Without this data, you might be taking on high-volume work that is actually losing the business money.
The Fix: How to know if your trade job was truly profitable? Use the "Project" features in Xero to record direct costs on a job-by-job basis. Review every invoice once the job is finished. Comparing the initial quote to the final outcome provides the insight needed to improve future pricing and protect your cash flow.
A lack of understanding around tax obligations can quickly bury a tradie business. If you aren’t setting money aside as you go, debts like GST, PAYG withholding, and superannuation can build up fast, leading to high-stress ATO audits.
The Fix: How can you avoid tax debt surprises? The best way to avoid GST and PAYG surprises is to "tax-proof" your bank accounts. We advise our Belmont clients to set up a separate offset account and transfer a percentage of every paid invoice into it immediately. This ensures the money is there when the BAS is due.
Many tradie businesses are "busy fools"—they have plenty of money moving through the bank account (cash flow), but very little of it is actually profit. If you don't know your "break-even" point, working harder won't fix the problem; it will only lead to burnout.
The Fix: How can you make more money as a tradie? To make real money, you have to know your overheads. At Hillier's Advisors, we help you break down your fixed costs (insurance, fuel, tool repayments) so you can set an hourly rate that guarantees a profit after all expenses are paid.
It’s common for a sole trader to assume that whatever is in the bank is theirs to take home. However, taking drawings before GST, PAYG, and business overheads are covered can leave the business in a dangerous position during quiet months.
The Fix: How can you improve business cash flow and sustainability? To improve your sustainability, you need to separate your "living money" from your "business money." Set a fixed weekly "wage" for yourself and leave the rest in the business account. Understanding the difference between drawings and profit is the key to long-term wealth.
Managing a trade business is hard enough without the constant stress of "money leaks" and administrative burnout. At Hillier’s Advisors, we’ve spent over 30 years helping Newcastle and Hunter Valley tradies move from just surviving the week to building genuine family wealth.
As Xero Gold Partners, we specialise in stripping away the "shoebox" chaos and replacing it with streamlined systems like Tradify that give you your weekends back. You don’t have to navigate these financial hurdles alone—we’re here to provide the expert hands and strategic advice you need to ensure your business is as solid as your workmanship.
Ready to stop the money leaks and start scaling? Book your free 15-minute "Tradie Strategy" call with our Belmont team today and let’s get your business on the right track.
Since 1989 Hillier’s Advisors have been delivering financial services to individuals, businesses and business owners across Newcastle and the wider Hunter Region. A major focus for the Hillier’s Advisors team and the work we do is providing the right financial advice when our clients need it, not just when they ask for it.
