“Can I get a discount if I pay you in cash?” is something Tradies get asked all the time. Some say ‘Yes’, but smart Tradies know better.
While cash is king for Tradies, there are several problems hooked to it, including chasing late payments, disorganised bookkeeping and lack of a money trail for filing tax return, to name a few.
However, with the rise of technologies like cloud-based job management and accounting systems, keeping track of invoices, payments and your legal financial obligations has become a lot easier.
Customers can’t pay you unless you invoice them. But invoicing can be long and hectic and hence tends to get pushed until weekends or even month end.
While, invoicing customers the instant you complete the job, sounded like a big deal a couple of years back; as new technology kicks in, things have changed quite a bit.
Creating detailed tax invoices including everything from customer name, address and job description to costing of individual items/products and labour rates, is now a matter of few clicks on your mobile device thanks to cloud technology platforms like i4Tradies, that can be accessed anywhere, anytime, and help you send instant invoice to customers within minutes.
Not only this, but you can also track how much money you are making per project in order to improve efficiencies and profitability. Moreover, you can keep any eye on overdue invoices that helps you send reminders to customers whose payments are still pending.
Tradies know this one too well. There’s nothing worse than chasing late payments and it seems like the tradies have been struggling with this problem since forever.
For Tradies, late payments can make all the difference between being profitable or not. Money in hand at the right time, means you can pay your business expenses on time, pay employees, buy tools and invest in new technology, all of which helps your business grow.
Unfortunately, 90% businesses fail due to lack of cash-flows, but that doesn’t mean you need to get paid in cash.
With the ability to accept credit or debit card payments for services rendered, with electronic bank transfers linked with cloud-based job management solutions like i4Tradies, money enters a Tradie’s account almost instantly.
What’s more, offering customers the convenience of making mobile payments, makes it possible for them to pay you even before you leave the site. Less time spent chasing equals to more time spent on growing the business.
Many Tradies that receive cash for their services, do pay tax. But there are still plenty, who don’t. This has given rise to a billions of dollars flowing out of the tax system and into the illegal cash economy, hurting the law abiding tax payers and eventually the entire economy.
More recently, Australian Taxation Office has been cracking down on businesses that have been concealing income, as well as advocating customers not to pay cash to their Tradies.
To avoid running in with the law and risk losing hard earned business reputation, Tradies need to make sure they are meeting their legal financial obligation. Cloud accounting softwares integrated into Job Management Apps for Tradies, support the ATO’s push to fight the cash economy, allowing easy generation of detailed tax invoices that includes company’s ABN, date stamps, costing of items and service and applied GST that allows a transparent audit process of all the money flowing in and out of the business.
Today, progressive Tradies know too well that mismanaged books, late payments and ATO penalties are a recipe for business disaster. As more and more consumers tend to incline towards greater convenience offered by electronic mobile payments, tech-savvy Tradies all across Australia are adopting cloud based solutions that not only help them keep customers happy but also allow more financial freedom to run their business the legal way.
i4Tradies is one such Tradie software platform that allows you to manage your financials better, keep track of business profitability and declare taxable income in a transparent, legally compliant way.