Featured, Tradie Business

Tax time tips for tradies

Now is the time for tradies to be collecting their receipts and reviewing their debts before Financial New Year is upon us.

The team at Fergus – the job management software specialists – are ready to help tradies level up their cashflow. Here’s a few of the top tips Fergus reckons will save you headaches this tax season.

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Keep those receipts

If an invoice is issued June 30 or before, it’ll count towards your accounts receivable and must be included in your tax return. Not only that, but tradies looking to get as much cash before the Financial New Year will want all invoices sent out.

Invoicing can be a sluggish and tiresome process on the best of days, but tax time always seems to drag things out. So, how can tradies implement a smooth and simple way to produce invoices?

“Using Fergus has really helped streamline the way we do business, such as: integration with suppliers to import invoices directly into the software, customised price books, automated timesheets from job entries, and being able to create our own forms for use in the field to name a few,” Prime Plumbing Director Robyn Shields said.

“We highly recommend Fergus for any trades business looking for a job management solution.”

Cut the debt

Overdue invoices can be claimed as a tax deduction if they’re written off before June 30.

There’s nothing worse than having to pay tax for a job you haven’t seen a red cent from. Don’t get caught in no-man’s land and make sure you’re on the front foot.

Regularly reviewing debts, inventories and fixed assets can save tradies tonnes of stress. Fergus can help make invoicing fast and simple to help tradies limit outstanding debts.

Automated invoicing (including overdue reminders) and calculating live cost/profit margins as jobs progress are just some of the ways in which Fergus can help keep admin legwork to a minimum.

Not only that, but Fergus offers portable and flexible payment options for tradie’s customers, allowing them to pay by card on-site. This saves businesses from having to chase customers, and gives an extra layer of peace of mind for owners.

“Everything goes through Fergus. They’ve all got the Fergus app on their phone and all of our (supplier) invoices get attached to the job,” Watersmith Plumbing and Gas owner Andrew Smith said.

“That then makes my life easier when it comes time to sending invoices.

“Customers love the convenience of Fergus Pay [credit card payments], and pay twice as fast, compared to our customers who use back transfer to pay invoices.”

Image: Godwin wisdom/stock.adobe.com

Check your finances

Following on from debt, maintaining an overall accurate record of your finances is a no-brainer. This not only makes tax season simpler, but also helps ensure a tradie’s cashflow is the best it can be.

“We never miss a job and we never miss a product [cost] now. Everything gets billed out.
“So the difference in turnover and cash flow has been huge,” ATX Plumbing co-owner Tyler Sprunt said.

The ATO requires a profit/loss statement, so if a tradie already has these summaries on-the-go, submitting a financial year’s worth will be a cinch.

Fergus can also be integrated with accounting software such as Xero, QuickBooks and MYOB to help streamline financial reporting.

“The real driver for finding a job management solution was the integration with our accounting software,” Activ8 owner Shane Robertson said.

“We also needed a reliable and professional system to take us to that next level within our business growth, a system that would grow and move with us.”

Pay that man!

If you’ve got a few employees on your books, make sure your single touch payroll (STP) is up-to-date by July 14. Employees can’t process their returns without a group certificate from the financial year. Having the right business software can really help tradies here, as it makes generating payslips a lot simpler.

“We want people to know that we are a professional establishment from the get-go,” Outback Tradies co-owner Sarah Bradford said.

“So we’ve just gone straight in, got our software sorted. I will happily spend money for the convenience of automation.

“Having that level of organisation makes life that much easier and gives us a solid foundation off which we can grow down the track. If you’re looking to shift from pen and paper to software, just do it.

“Honestly it’s a life saver in business. You can automate everything in this day and age. Just automate as much as you possibly can, so you can spend your time on the things that matter.”

Don’t wait until after July to sort your taxes or your business! Get ahead with Fergus and see how its software can help your operations and cashflow. Sign up for a free 14-day trial or find out more at fergus.com

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