Content reviewed and verified by Graham Chee, with FCPA-led practice at Local Knowledge, Mascot NSW. Continuous CPA Australia member since 1986. Prior career at Goldman Sachs, BNP Investment Management and Merrill Lynch..
TL;DR
Lumpy cash flow, progress claims, subbies and TPAR — the trades have their own rhythms. Here is how to keep the books straight through all of them.
Key Takeaways
- GST captured correctly on both materials and progress claims
- Subcontractor payments tracked for Taxable Payments Annual Report (TPAR) obligations
- Job-level visibility so you know which jobs actually made money
- Retentions and progress claims recorded so nothing is forgotten
- Vehicle, tool and equipment costs captured for full deductions
The Trades Run on Cash Flow
Profit on the job means nothing if the cash arrives late.
If you run a trade or construction business in Sydney, your financial life has a particular shape: large material outlays up front, progress claims and retentions, subcontractors to pay, and customers who do not always pay on time. A quoted job can be genuinely profitable and still leave you short of cash in the week the materials bill lands.
Bookkeeping for tradies is therefore about timing as much as accuracy — knowing what is coming in, what is going out, and when. Done well, it means you can take the next job with confidence instead of hoping the numbers work out.
What Trade Businesses Need on Top of the Basics
GST captured correctly on both materials and progress claims
Subcontractor payments tracked for Taxable Payments Annual Report (TPAR) obligations
Job-level visibility so you know which jobs actually made money
Retentions and progress claims recorded so nothing is forgotten
Vehicle, tool and equipment costs captured for full deductions
Single Touch Payroll running correctly if you employ apprentices or staff
TPAR and Subcontractors
A reporting obligation many tradies miss.
Businesses in the building and construction industry that pay subcontractors generally must lodge a Taxable Payments Annual Report (TPAR) each year, detailing what they paid each subbie. It is easy to overlook until it is late — and the ATO uses this data to cross-check the subcontractors’ own returns.
The fix is simple bookkeeping discipline: record every subcontractor payment with the subbie’s ABN as you go, rather than reconstructing it under time pressure in August. Well-set-up software captures this automatically, turning TPAR from an annual scramble into a one-click report.
Keeping the Books Straight Between Jobs
Capture on Site
Photograph supplier dockets and receipts the day they happen so nothing is lost from the ute.
Track by Job
Allocate income and costs to each job so you can see real profitability, not just a total.
Record Subbies Correctly
Enter every subcontractor payment with their ABN, ready for TPAR.
Watch the Cash Runway
Review what is owed to you and by you weekly so a late payer never stops the next job.
Tradie Bookkeeping Questions
Q.Do I have to lodge a TPAR?
If your business is primarily in building and construction and you pay subcontractors, you generally must lodge a TPAR each year. We confirm whether it applies to you and prepare it from your records.
Q.How do I know which jobs make money?
By allocating income and costs to each job in your software. Job-level tracking turns a vague sense of “we’re busy” into a clear view of which work is actually worth taking.
Q.Can I claim my ute and tools?
Business use of vehicles, tools and equipment is generally deductible, subject to the rules on private use and record-keeping. Capturing these properly through the year maximises what you can legitimately claim.
Q.I only do the books on Sundays — can you take it over?
Yes. Many tradies hand us the bank feed and receipts and get their Sundays back, along with accurate BAS, TPAR and payroll handled for them.
About the Author
Graham Chee, FCPA, CPA, GRCP, GRCA
Principal and Founder, Local Knowledge
Graham Chee is the principal and founder of Local Knowledge, an FCPA-led Australian practice that brings institutional-grade compliance, investment-structure and intellectual-property experience directly to owner-managed businesses. Graham is a Fellow of CPA Australia (FCPA since November 2005, continuous CPA member since 1986) and holds the OCEG Governance, Risk & Compliance Professional (GRCP) and Governance, Risk & Compliance Auditor (GRCA) designations. His prior career includes senior roles at Goldman Sachs, BNP Investment Management and Merrill Lynch. Graham was previously portfolio manager of the Asian Masters Fund (IPO December 2007 – 31 December 2009), which returned +29% in AUD terms versus the MSCI Asia Pacific (ex Japan) benchmark. He signs off on 100% of client files personally.
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This article is general information only and does not constitute financial, tax or accounting advice. Rates, thresholds and lodgement dates change and depend on your circumstances — Graham Chee, FCPA confirms the current position for your business before you act.
Graham Chee FCPA, CPA, GRCP, GRCA · Principal, Local Knowledge · Mascot NSW · CPA-signed files