Tradie Talk - How to Save Money on Accounting

According to recent research conducted by Thriday, tradies spend an average of 6 hours per week on financial admin tasks, which can be a significant burden for busy tradies. Moreover, nearly 50% of small business owners reported that bookkeeping was their least favourite task. This aversion to accounting can lead to poor financial management and a lack of insight into the business's performance. 

To address these challenges, new accounting software solutions, such as Thriday, have emerged. Thriday is a cloud-based accounting software that offers tradies a simple and efficient way to manage their finances. The platform is designed specifically for small businesses and provides a range of features that make accounting more straightforward, such as invoicing, expense tracking, and bank reconciliation. 

In addition to the benefits of using Thriday, there are many other ways that tradies can save money on accounting. For example, outsourcing accounting tasks to a professional can be a cost-effective way to ensure accurate financial reporting and compliance. Additionally, adopting digital accounting tools and automating repetitive tasks can save time and reduce errors. 

The importance of accounting for tradies 

Accounting is crucial for tradies because it provides valuable insights into their financial health and helps them make informed business decisions. With proper accounting practices, tradies can track their income and expenses, manage cash flow, and monitor their profitability. This information is critical for making strategic pricing, budgeting, and investment decisions. Moreover, accurate financial reporting is essential for meeting tax obligations and complying with regulations. 

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"Accounting is crucial for tradies because it provides valuable insights into their financial health and helps them make informed business decisions"  

With the right tools and processes in place, such as digital accounting software and automated invoicing systems, tradies can save time, reduce errors, and improve their overall financial management. By prioritising accounting and making it an integral part of their business operations, tradies can set themselves up for long-term success and growth. 

Common accounting challenges tradies face 

Tradies in Australia face numerous accounting challenges that can make financial management daunting. One of the most significant challenges is keeping up with the constantly changing tax laws and regulations. Moreover, managing cash flow and accurately tracking expenses can be time-consuming and complicated, especially for those with limited accounting knowledge. Also, managing invoices and chasing up late payments can be frustrating for tradies. 

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"Managing cash flow and accurately tracking expenses can be time-consuming and complicated, especially for those with limited accounting knowledge"  

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There are several ways tradies can save money on accounting, such as adopting digital accounting tools, outsourcing accounting tasks to professionals, and using accounting software like Thriday. By implementing these strategies, tradies can streamline their financial management processes, reduce expenses, and make informed business decisions to help them thrive in today's competitive market. 

The benefits of cloud-based accounting software 

Cloud-based accounting software, like Thriday, can provide numerous benefits for tradies. Firstly, it allows for easy access to financial data from anywhere, at any time, as long as an internet connection exists. This means that tradies can monitor their finances and stay updated on their business's financial health even while on the go. Additionally, cloud-based accounting software provides a more efficient and streamlined invoicing, expense tracking, and GST reconciliation process. This can save tradies time and reduce errors compared to manual methods.  

Thriday also offers automated features, which can further reduce the time and effort required for accounting tasks. Another key benefit of cloud-based accounting software is improved collaboration and communication. With Thriday, tradies can share financial data with their accountant or bookkeeper in real-time, allowing for more timely and accurate financial reporting. Finally, accounting software like Thriday can save tradies money, eliminating the need for expensive bookkeepers and accountants on menial tasks. Overall, Thriday can provide many benefits for tradies, allowing them to improve their financial management, save time and money, and make more informed decisions about their business's future. 

How Thriday can save tradies time and money 

Cloud-based accounting software can provide several cost-saving benefits for tradies, including: 

• Lower costs: Thriday eliminates the need for tradies to pay for expensive accountants and bookkeepers to do transaction categorisation, saving them time and money. 
• Elimination of manual processes: Thriday automates most accounting tasks, reducing the need for manual data entry and processing, which can save time and reduce errors. 
• Improved cash flow management: Thriday provides real-time financial data and insights, allowing tradies to manage their cash flow better, identify financial trends, and make informed decisions. 
• Reduced late payment fees: Thriday can automate invoicing and payment reminders, reducing the risk of late payments and associated costs. 

Thriday can provide significant cost and time savings for tradies, allowing them to improve their financial management and achieve long-term success. 

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The importance of keeping accurate records 

Keeping accurate records is essential for tradies as it provides them with an overview of their business's financial health, helps them to manage their cash flow, and ensures compliance with tax obligations. 

Accurate records allow tradies to keep track of their income and expenses, identify financial trends, and make informed decisions about pricing, budgeting, and investment. It also helps to identify business areas that may need attention or improvement. Furthermore, accurate records are crucial for tax reporting purposes. 

Tradies must maintain accurate records of their business transactions to comply with tax laws and regulations. Failing to do so can lead to fines, penalties, and other legal consequences. By using a next-generation accounting platform like Thriday, tradies can reduce the risk of errors, improve their financial management, and set themselves up for long-term success. It also enables them to understand their business better and make informed decisions based on economic data, leading to increased profitability and growth. 

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How automation can streamline your business 

Automation is becoming increasingly crucial in accounting for its ability to reduce manual processes, increase accuracy and save time. By automating accounting tasks such as data entry, bank reconciliation, and invoicing, tradies can streamline their financial management processes, reduce errors and save time. Automation tools can also provide real-time financial data and insights, allowing tradies to make more informed decisions about their business's future. Additionally, automation can help to reduce the risk of fraud, as it eliminates the need for manual data entry, which is more prone to errors and manipulation. With automated accounting processes, tradies can improve their cash flow management, keep track of their expenses and income, and meet their tax obligations more efficiently. 

Claim tax deductions and incentives with ease 

Several tax deductions and incentives are available to tradies in Australia, which can help reduce their taxable income and save them money. Some of the primary deductions available to tradies include expenses related to business running, such as tools and equipment, vehicle expenses, insurance, and advertising. 

Other deductions may include professional development expenses, such as training courses or conferences, and home office expenses, such as rent and utilities. Additionally, tradies may be eligible for specific tax incentives, such as the instant asset write-off, which allows businesses to immediately deduct the cost of eligible assets purchased or leased during the financial year. This incentive can provide significant tax savings for tradies who invest in equipment or other assets to grow their business.

Tradies need to claim the correct tax deductions and incentives available to them, as they can help to reduce their tax liability and increase their profitability. Thriday does this automatically, making it easy for tradies to get the right BAS lodgment submitted. 

Thriday makes every tradies life easier 

Small business owners often need help with accounting and financial management. Hiring an accountant is not a feasible option for many tradies due to the high costs associated with such services. Fortunately, technology has made it easier for small businesses to manage their finances without incurring significant expenses. Thriday aims to simplify accounting and financial management for small business owners. It offers a range of features that make it easy for small businesses to manage their cash flow and stay on top of their financial obligations.  

One of the most significant advantages of using Thriday is the ability to automate financial tasks. By automating tasks such as invoicing and expenses, business owners can reduce the time spent on financial administration, enabling them to focus on more critical tasks like growing their business. Thriday also provides real-time financial insights, allowing business owners to make informed decisions based on their financial data. 

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"One of the most significant advantages of using Thriday is the ability to automate financial tasks"  

Another key benefit of Thriday is its affordability. The app is designed to be accessible to small businesses of all sizes, with pricing starting from just $29.95 per month. This makes it an affordable alternative to hiring an accountant, which can cost thousands of dollars per year. 

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Accounting Money Saving FAQs

How can I save money on accounting for my business?

One way to save money on accounting is to use accounting software like Thriday instead of hiring an accountant or bookkeeper. Thriday can automate your banking, accounting and tax for a very affordable price.

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Can I do my own accounting to save money?

Yes, you can do your own accounting to save money. Next-generation accounting platforms like Thriday make it easy to sort out your tax affairs and stay compliant with the ATO.

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How can I reduce the cost of hiring an accountant?

You can reduce the cost of hiring an accountant by only using their services for specific tasks, such as tax preparation and doing other accounting tasks yourself using software like Thriday.

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Should I hire a freelance accountant to save money?

Hiring a freelance accountant can be a cost-effective option for some businesses. However, you should ensure that the accountant is qualified, experienced, and has a good reputation before hiring them.

Running a small business can be challenging, with numerous tasks to manage daily, including financial administration. However, small business owners can now reduce their financial admin by up to 90% using Thriday, an innovative financial management software. 

Effective accounting is critical for the success of any trades-related business. With the help of new accounting software solutions, such as Thriday, and other cost-saving strategies, tradies can improve their financial management, save time and money, and make more informed decisions about their business's future.