Which Costs Are Most Overlooked by Local Tradies?

Managing a trade business is challenging. You are balancing workstations, dealing with clients, and maintaining your tools. It is very easy to lose track of where your money goes.

You likely believe that you have the big costs covered—fuel, materials, and insurance. Still, many expenses creep up on you to the point where they hit you in the wallet.

The fact is, if you are not tracking all your expenses, you are losing money. To keep more of what you make, take a look at the sneaky costs that most tradies overlook.

The Small Stuff That Adds Up

Have you ever taken coffee to work? Did you dash to Bunnings to get some screws you forgot? These small purchases may seem insignificant at first, but they accumulate quickly.

Minor items and consumables are cost killers. Think about:

• Sandpaper
• Drill bits
• Lost tape measures
• Cleaning supplies
• Safety gear replacements

Each one costs a few bucks. But over a year? You have spent hundreds without noticing.

The solution: Retain receipts for everything. Take pictures of receipts using your phone. You will be happy when tax time comes around.

Your Car is More Expensive than You Think

The majority of tradies count fuel as a cost. That’s good. However, your work car is not cheap just because of petrol.

Wear and tear is huge. Your ute takes a battering day by day. More frequent services and parts that wear out quickly mean replacing them sooner—all these cost money.

Don’t forget:

• Registration
• Insurance
• Roadside assistance
• Tolls and parking
• Car washing 

Keep track of all your vehicle expenses. To remain profitable, you may have to increase the cost of travelling.

Software and Technology Subscriptions

That job management app? Accounting software? Cloud storage? They are all expensive on a monthly basis.

There are a lot of tradies who start free trials and do not cancel. Or, they continue spending on things that they do not use.

Do this: Look at your bank account. Cancel anything you are not utilising.

Also think about:

• Your phone bill (if you use it for work).
• Home Internet (when you are the one doing the administration).

These are business expenses. Claim them.

Training and Licenses

Your skills need updating. That is a financial expense, and tradies are not always good at budgeting for that.

This includes:

• White card renewals
• Safety courses
• New certifications
• License renewals
• Trade magazines
• Association memberships

Good news: They may be tax-deductible, so make sure to get professional assistance to claim them. For instance, tax accountants in Culburra Beach will know local businesses, provided you are in the Shoalhaven locality. They can offer advice that is highly applicable to you.

Consider training a form of investment. It helps you charge higher prices and remain competitive.

Bank Fees and Payment Processing

Whenever you use a card to pay, you are losing a little in fees. Account fees, overdraft charges, and equipment finance charges add up every month.

A large portion of tradies do not shop around to find a better deal with banks.

Ask yourself:

• Could you receive superior merchant rates?
• Is there a business account that has lower fees?

It does not take big sums of money to have small savings that add up significantly.

Marketing Expenses You Never Noticed

“I get work by word of mouth”—this is good until it stops.

Without even intending to, you are spending money on marketing:

• Website and domain names
• Business cards
• Vehicle signage
• Work shirts with your logo
• Local sponsorships

These keep your company in focus. Don’t overlook them.

Getting Professional Help

Some tradies attempt to save money here—but they shouldn’t.

Business accounting services may seem expensive to work with. But consider the hours wasted in paperwork. That is the time you are wasting, not making money on the tools.

A good accountant:

• Prepares your tax return.
• Discovers omissions on your part.
• Helps organise your business finances effectively.
• Plans for your future.

The money you spend on them typically returns in the form of tax credits and fewer headaches.

Insurance Gaps

You have public liability insurance. Good. But what about:

• Income protection (in case you become injured and are not able to work)
• Tool liability (in case everything gets stolen)
• Cyber insurance (for your business information)

These gaps may ruin you financially if something goes wrong.

Review your insurance on an annual basis. Your coverage should change as your business changes.

Your Unpaid Time

This is the sneaky one. The time you spend:

• Writing quotes
• Chasing payments
• Doing paperwork
• Repairing things not included in the initial task

“Since you’re here… would you mind…” Those words cost you money.

Learn to value your time. Charge for all your work. Set boundaries with clients.

Bottom Line

Success as a tradie does not just come from ability. It also has to do with smart money management.

These are the costs that kill your profits. The majority of tradies are not even aware of their occurrence.

Here’s what to do:

• Check up on your costs every week.
• See where the money is actually going.
• Begin by keeping tabs on the little stuff.
• Seek professional assistance if needed.

What are some of your unanticipated expenses? Any advice for other tradies? Share in the comments. We’re all in this together.