10 Bookkeeping Shortcuts every Tradie should know
Running a trade or building business is no small job. Between early starts on site, managing staff, ordering materials, and keeping clients happy, the last thing most tradies want to face is the paperwork. Yet, when bookkeeping falls behind, it leads to late nights, missed invoices, cash flow headaches, and extra costs with your accountant at year-end.
The good news? Bookkeeping doesn’t need to be complicated. With the right habits and a few clever tools, you can keep your accounts tidy, GST under control, and cash flow steady without spending your evenings in front of a screen.
If you’ve been trying to DIY Xero and it feels like a second job, you’re not alone. I wrote about the hidden cost of DIY Xero and the common pitfalls here — worth a read if you’re curious where time and money often get lost.Here are 10 shortcuts every tradie can use (and if you’re based in Orewa or around the Hibiscus Coast, these are the exact systems I help local tradies set up in their business).
Batch Payments Save Time Paying bills one by one is a mug’s game. You’ve already put in the hard yards on site - no one wants to spend Friday night clicking approve 17 times. Batch payments mean you load up one file, press go, and boom -suppliers sorted, beer still cold.
Snap Receipts on the Go. We all know the glovebox filing system - scrunched receipts, faded fuel dockets, maybe last week’s pie wrapper. Problem is, IRD doesn’t accept pie wrappers as proof of expenses. Snap those receipts in Xero or Hubdoc the minute you get them. GST sorted, and your glovebox might actually shut.
Automated Debtor Reminders Chasing late payers is no one’s idea of fun. One day you’re everyone’s mate, the next you’re the “where’s my money” guy. Let Xero or your job management system do the nagging for you. A polite reminder lands in their inbox, and you get to keep your good-guy rep.
Customise Your Chart of Accounts Xero’s default codes are fine if you’re running a lemonade stand, but tradies need more detail. Set up categories like Materials, Labour, Hire Equipment, and Subbies. That way you can actually see where your money’s going - and know if that kitchen reno swallowed your profit or spat some back out.
Code GST vs Non-GST Correctly Not everything comes with GST, but you’d be surprised how often it gets coded wrong. Insurance, government charges, even some zero-rated items - they’re all different. Get it wrong, and suddenly your GST return is a mess. Think of it like sorting nails, screws, and bolts - looks fiddly, but saves a headache later.
Entertainment & FBT Awareness Friday beers with the crew? Client lunches? Sadly, not 100% deductible. Most entertainment is only 50%. And if the “company ute” is also the weekend camping wagon, FBT rules could come into play. You don’t need to know every line of tax law, just code things right so the accountant doesn’t raise an eyebrow later.
Align Your Job Management Software Fergus, SimPRO, Buildertrend - great tools, but only if they play nicely with your bookkeeping. If what’s in the job software doesn’t match what’s in Xero, you’ll spend hours fixing it. Clean data in = clean reports out. Otherwise, you’re basically building on crooked foundations.
Regular Reconciliations Leaving reconciliations until the end of the month is like waiting until the end of the year to clean your van - possible, but not pretty. Weekly is ideal; monthly at the bare minimum. Small, regular tidy-ups keep cash flow clear and stop problems snowballing.
Put GST Aside Weekly Nothing kills a good month like realising the GST bill has eaten your profit. A simple fix: transfer a chunk into a separate GST account every week. Out of sight, out of mind, and no nasty surprises when filing rolls around.
Use Hubdoc for Invoices & Receipts Manual data entry is so last decade. Hubdoc can fetch supplier invoices automatically (Placemakers, Reece, Bunnings and co.) or you can forward them by email. Snap a photo of receipts in the app, and it all flows into Xero. Less typing, fewer errors, more time for, well… literally anything else.
Final Word
Bookkeeping might never be the highlight of your week, but it doesn’t have to steal your evenings either. A few smart shortcuts batch payments, debtor reminders, Hubdoc magic can keep your books tidy and your weekends free.
If you’re a tradie in Orewa, Silverdale or around the Hibiscus Coast, we can take the hassle off your plate completely. From full bookkeeping services (GST, reconciliations, invoicing, reporting) through to Xero setup and training We’ve got you covered. Bonus: being local means we can meet up in person if you’d like, while still keeping everything simple and digital. And if you’re based elsewhere in NZ, no worries we support clients nationwide too. Find out more here.
