Home > Updates > Accounting for tradies: Getting the basics right
Running a trades business is demanding. Between quoting jobs, managing staff and suppliers, and keeping clients happy, it can be hard to find the time to sit down and look closely at the books. However, understanding your financial position is essential to sustaining profitability and long-term success.
We work with a wide range of trades businesses, from builders, electricians and plumbers to landscapers, helping them strengthen their financial position, streamline operations, and grow a sustainable, profitable businesses.
After a tough few years for the construction industry, confidence is showing positive momentum. The Master Builders 2025 State of the Sector report reveals that 63% of builders expect the economy to improve within the next 12 months, with 62% anticipating stronger business performance by the end of 2026. Additionally, 64% report steady or strong forward work, up from 51% last year, a promising indicator of recovery and resilience across the sector.
Here are some key ways we can help support your trades business to succeed:
Cash flow can be one of the biggest challenges for a trades business. You might be busy on paper, but if payments are slow to arrive , it can create pressure on working capital when it’s time to pay suppliers, wages, or GST.
We can help you develop clear cash flow forecasts and identify patterns in your income and expenses. With the right systems in place, you can anticipate shortfalls, plan for large purchases, and make informed decisions about when to take on new projects or invest in more staff or equipment.
Many trades businesses still rely on manual processes – paper invoices, handwritten timesheets, or basic spreadsheets. While these might work initially, as your business grows, they can lead to lost time, errors, and missed opportunities.
We often recommend cloud accounting systems that integrate seamlessly with quoting, job management, and payroll tools. This automation gives you real-time visibility over your finances and can save admin time every week.
For tips on finding the right tools to streamline your operations, read our guide: Choosing the right app for your trades business.
It’s not just about knowing whether you’ve made money. We analyse job profitability, gross margins, and outstanding debtors so you know which projects are most profitable and where you can improve. With these insights, you can take control of your business decisions and grow profitably.
Many business owners look at their profit and loss statement and see only whether they’ve made money or not. But those numbers tell a deeper story about where your business is heading.
We can help you interpret your financial reports and translate them into clear, actionable insights. You’ll understand which jobs, clients, or services are most profitable – and which ones might be dragging you down.
Managing payroll can be complex for any business with multiple staff, varying hours, and seasonal workloads. We can handle your payroll from start to finish – calculating wages and deductions, processing PAYE and KiwiSaver, and managing leave entitlements.
Missing deadlines or overlooking deductions can quickly eat into your profits. We ensure you stay compliant with GST, PAYE, and other tax obligations, while also helping you reduce unnecessary costs through effective tax planning. This includes advice on business structure, asset purchases, and provisional tax payments.
When you’re busy on the tools, it’s easy to focus on today’s workload rather than the bigger picture. Having a long-term business plan gives you direction – whether your goal is to grow your team, invest in new equipment, or eventually step back from day-to-day operations.
It’s also important to think ahead about your eventual exit from the business – whether that’s selling, passing it on to family, or transitioning to new ownership. Proper planning helps you maximise the value of what you’ve built, ensures a smooth handover, and protects the financial future of both you and your team.
We understand the unique challenges of running a trade business and the practical realities that come with it. Whether you need help managing cash flow, improving profitability, planning for growth, or preparing to sell your business, our team can provide the tools and guidance to help you stay ahead.
Speak to our expert team today. We can tailor the right solution to suit your business needs and budget.
Nexia New Zealand is one of New Zealand’s leading full-service chartered accounting and business advisory consultancy firms, offering the full range of chartered accounting, business advisory, corporate advisory, tax consulting and audit services.
Nexia New Zealand has four offices throughout New Zealand: Victoria Street in Christchurch, Albany on Auckland’s North Shore, Newmarket in the Auckland CBD and Hastings in Hawke’s Bay.
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Christchurch
Reach out to one of our trusted Nexia Advisors. We have offices in Christchurch, Auckland and Hastings.
