Everything about Bookkeeping for Tradies You Should Know

Posted by Donald J. Brooker on December 17th, 2020

If you're a tradesperson or a small business owner, bookkeeping for tradies is a necessary expense that you need to take care of. The simple truth is, without having your bookkeeping for tradesmen organized, no matter how well you do your job, your personal cash flow will be adversely affected. This includes your personal finances, which you need to keep in good standing with the Canada Revenue Agency, and your professional reputation as an accountant, business professional or entrepreneur. Bookkeeping for tradesmen isn't very different than it would be for anyone else, except that the rules and regulations are somewhat different.

First, it is important that you become familiar with all the terminology relating to bookkeeping for tradesmen, before you begin any bookkeeping task. You must learn all of the different sections related to bookkeeping, including accountancy terminology, the difference between a practice bookkeeping method and an invoice/certification, the types of ledgers you'll need, balance and sales tracking, the various types of journals, and of course, accounts payable. It can be quite confusing to begin with, especially if you're a first-time bookkeeper. So take the time to learn the various terms associated with bookkeeping for tradesmen before you begin.

Now, you're familiar with the various terms, you'll need some solid training in bookkeeping for tradesmen. There are many books on the market that provide the training needed, either online or at your local bookstore. But remember, you don't have to use the bookkeeping software that is provided by your accounting firm. There are several different types of bookkeeping software that are designed specifically for the business environment, and that will meet the needs of the bookkeepers that work for trade’s people.

The accounting bureaus that provide bookkeeping services for traders provide such software as QuickBooks, NetSuite, or Peachtree. You may also choose to use QuickBooks to manage all of your accounting needs, but if you run your own accounting firm, you may use the other products as well. There are many different modules available with each program, including modules that help you with basic accounting, stock, retirement, and mutual fund investing. With QuickBooks, there are options to upload your information directly into the computer system, so it's very easy to view all of your financial records from your office. The disadvantage to QuickBooks is that it is only designed for business use and does not provide the ability to do the sort of detailed accounting required for tradespersons.

Peachtree is an excellent product for bookkeeping needs for tradespersons. It is designed for the accounting needs of small businesses and provides the user with the ability to print reports, graphs, and tables very easily. The user can import information directly from files, and the advanced features allow you to track your finances in real time. There is a free online account set up option that allows your customers to access your records online, and make purchases online. This helps you manage your bookkeeping needs with less hassle for your clients.

For companies or individuals who need a bookkeeper, QuickBooks is a good choice. Most accounting software books have some pre-built modules that provide great support for small businesses, such as account ledgers, and tradeshow displays. However, most of the modules that come with business accounting software are not appropriate for work that takes place between business hours. These modules would include inventory tracking, invoicing, and payroll.

A bookkeeper helps your business save money, so keeping track of your finances is essential. Bookkeeping for tradespersons involves a great deal of paperwork, which results in a great deal of paper being generated during their employment. Some bookkeepers use special software to take the paperwork off their hands, while others must rely on word processing software. Having a bookkeeper reduces the paperwork associated with many accounting jobs, allowing your business to focus on the jobs that truly matter. Using an accounting software program to keep track of your tradespersons' paperwork cuts down on your job costing software, while giving you the tools to do the jobs that are important to your business.

While your bookkeeper takes care of basic accounts, such as sales, purchases, and income, he also takes care of some more mundane tasks as well. Bookkeepers are responsible for creating ledgers and journals, as well as processing banking statements. Because bookkeepers are required to do a lot of mundane tasks, they require training to get the job done. Bookkeeping for tradespersons is a relatively simple task when compared to other accounting duties, but a skilled bookkeeper can do an even better job.

If you are a tradesperson or are planning to hire one, it is important that you find a bookkeeper who is reliable and trustworthy. If you are planning to hire a bookkeeper to take care of your financial records and overall bookkeeping, you should only deal with someone that is known to always finish the job on time. One way to find the best bookkeepers is to ask around among your friends or other business acquaintances for names of bookkeepers they have used in the past. Another way is to use bookkeeping software to find bookkeepers who are willing to take care of your financial details.

In order to get bookkeeping for tradespersons, you need to know how to fill out the forms the bookkeeper asks for on the required forms. A lot of bookkeeping tasks are standard and commonly used, such as invoices, making payments, entering information, and entering records. You can find these forms online, just type "bookkeeping" into any search engine and you will get results. Most tradespersons do not like to deal with complex financial paperwork, so make sure you only fill out the forms that are specific to your company. There is a book titled "Bookkeeping for Tradespeople" which can greatly help you if you are a tradesperson or have one in your staff. This book covers every aspect of bookkeeping and can even be downloaded for free.