Featured, Tradie Business

Cashflow saving tips for tradies

Cashflow tradies

Increasing cashflow is the dream of many tradies. But like a complete bathroom reno, rarely is it a straightforward task. Actioning your trading and payment terms can be a solid way of ensuring savings are coming in on a scheduled basis.

SEE ALSO: Tradie Tough Tests

Not all business changes can be implemented by the average tradie, however, which is why the team at Oracle Accounting & Wealth is on your side. They have a team of experts ready to help you save money and grow your business how you want. Below are some tips on increasing cashflow via terms, as well as when/how to engage the right professional help.

Terms and conditions apply

When it comes to setting out payment terms for jobs, it’s important to put yourself first. Being too generous when it comes setting terms for customers can be harmful for your cashflow, especially when co-ordinated with your own expenses.
This caution should be doubled when it comes to offering extensions or generous credit terms, and tradies should evaluate the health of the business before agreeing.

Your cashflow will benefit greatly from good credit terms from suppliers, but it’s important to remember at some point it needs to be paid in full. When it comes to buying supplies, always aim to buy only what you need and no more. Over-buying beyond your budget limits hurts your cashflow as well as leaves you in the lurch when it comes to paying suppliers.

Engage a professional

Establishing a firm basic business foundation can be a crucial step owners can overlook when drawing up cashflow strategies. This doesn’t mean tradies need to start breaking out the books and calculators regularly. Many of the roles, such as bookkeeping and asset management, can be outsourced to a firm such as Oracle Accounting & Wealth.

As well as helping with the more complicated aspects of business, Oracle Accounting & Wealth can help train you in the basic principles. This way, you’re well-equipped to face the day-to-day business challenges that come your way. You can get started right now by downloading Oracle Accounting & Wealth’s business-plan template.

The template – and more information about Oracle Accounting and Wealth’s services – can be found at www.oracleaccounting.com.au/free-business-plan-template/

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