Being involved in business and trade would mean that you deal with both, income and expenses. In order to strike the right balance between the two, you need to have accuracy in your records and in your accounts. Here are some of the key expenditures you’d have as a tradesman.
There are a number of things that include in the list under purchases. The specifics of this could vary depending on the type of trade you are involved in. Every purchase has to be tracked, even if it’s something really small that you buy. Any purchase connected to the business contributes to the progress of your business in one way or the other.
Thus, these records and accounts need to be maintained very carefully and accurately. Today, there are quite a few impressive software used for performing accounting functions conveniently and accurately to make matters a lot easier for tradesmen. Look up ‘best accounting software for tradesmen’ on the web to find a list of the top options you could consider trying.
If you’ve got helpers and other small agents assisting you in some way, you are going to need to pay them daily, weekly, or monthly salaries. Once again, it is vital that you keep these payments recorded accurately, for they are essential when you want to work out the accounts related to your trading activities. Another reason why this is important is because, in many cases, you may not be paying a fixed amount to your support guys.
Even if you are, the amounts you pay them are likely to be altered after a certain period of time. Additionally, these folks may not be permanent staff, and may be replaced and removed from time to time, too. In all these cases, the finances could keep changing, which is why you need to maintain proper records and take them into close consideration whenever you work out overall accounts and finances.
There is always a high possibility that, as a tradie, you would be paying various types of rents. The primary rents you could be paying are those connected to property, such as building, vehicles, etc. These rents usually come under the top five expenditures on your list because they are quite a serious commitment. You wouldn’t be running your store and progressing as you are if not for the great building you found, perhaps at a great location, too.
Thus, the rentals are crucial, and require to be settled and maintained without a hitch. Forgetting to count your rents in as you do the accounts could bring out a major difference or imbalance in your finances. Therefore, it certainly is something you would want to take seriously.
If you are paying rents for a building, you are likely to be paying all the maintenance costs, too, which again, is definitely not a small sum. Thus, ideally, you’d keep these costs/expenditures recorded alongside your main rentals.
Emergencies are sometimes inevitable. You may have medical emergencies, or emergencies connected to your property/store, such as when there is a fire or a natural disaster, or any other situation connected to trading activities. These expenses need to be in your books, too, which would make it easier for you to sort your current finances and plan future activities.