You need the right tools for the job. Most trade business owners use accounting software to help them run their businesses – and for good reason. It reduces the time you spend on manual data entry and automates the financial processes that help keep your books in order. It’s a necessary investment for anyone running a trade business.

But it’s not the only digital tool tradespeople should be using. Just as you wouldn’t use a screwdriver to hammer a nail, even a great accounting system can only get you so far. You might be a little hesitant to add another application into the mix (especially if you don’t feel very tech-savvy) but that’s exactly why it’s important to pick the right tool for the job.

Let us explain why using job management software like Tradify, alongside your accounting software, will help make running your trade business easier and more efficient.

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• 1. Accounting systems are made specifically for finances
• 2. Improve your trade business with job management software
• 3. The advantages of integrated systems
• 4. Find the right tools that work together

1. Accounting systems are made specifically for finances 

We’re huge fans of cloud-based accounting software. When it comes to tracking your finances, it’s a must-have tool. Tradify integrates with some of the most loved systems from all over the world including: 

• Xero
• Sage
• MYOB
• QuickBooks

Accounting software will help you use the time and resources you spend on your accounts more efficiently – and reduce costly bookkeeping mistakes. It’ll allow you to process your accounts faster and eliminate manual calculation errors.

It will also increase your efficiency by introducing automation. For example, UK tradespeople may need to keep records of their tax obligations under the Construction Industry Scheme. Accounting software like Sage can be configured to automatically deduct the correct percentage from a subcontractor’s bill, ensuring 100% accuracy when it’s time to file a return.

But staying on top of your finances is only one piece of the admin puzzle. What about the other areas of your trade business? Dealing with enquiries, quotes, staff and client management — accounting software isn’t the right tool for these jobs.

2. Improve your trade business with job management software

Manual, admin-heavy tasks make your trade business inefficient and disorganised. The more hours you spend managing the admin side of your business – digging through paperwork, chasing timesheets, following up unpaid invoices – the less time you have to take on jobs that will actually pay the bills. 

Not to mention all the little (but costly) things that start to fall through the cracks – forgetting bookings, undercharging clients, and missed work opportunities because you can’t get back to people fast enough. 

Here’s how job management software can streamline your business even further:

• Keeping organised. With everything in one place, there’s no need for additional paper copies ‘just in case’. From the moment a customer makes an enquiry right through to final invoice payment, you only need to enter the information once – reducing manual data entry.
• Get paid quickly. Cash-flow issues often happen because tradies can’t get their invoices out fast enough. If you wait until the end of the week, you’re already on the back foot. With Tradify, you can invoice on the spot as soon as the job is done. 
  • Automated payment reminders chase overdue payments on your behalf.
  • Online payment options make it even easier for your clients to pay you as soon as they receive your invoice.
  • Stripe integration allows your customers to pay online with a credit card.

• • Stop losing money on jobs. A missed hour here or a few nuts and bolts there – over time, they all add up. You need to know that your jobs are making you money and not costing you more than they’re worth. With Tradify, you can record your time and materials accurately to the correct job, and they’ll automatically be included in your final invoice. You’ll also have real-time profit-and-loss info so you can send more accurate quotes.
  • Manage your team better. Taking on staff adds another layer of complexity to running a business. There’s keeping track of timesheets, job progression and scheduling work calendars. Tradify makes it easy to grow your team by automating your timesheets and staff scheduling, job information that’s easily accessible in the app (digital job sheets) and tracking jobs in real-time – which helps with updating clients too.

3. The advantages of integrated systems

Using the right tool is important for the job, but you don’t want to get caught in a complex web of software applications that waste more time than they save. The best-case scenario is to use systems that can speak to each other and share information. This allows you to work with the app that’s best for the job at the time, while syncing information between both.

Tradify syncs with most major accounting software providers and here’s how it helps you:

• • One source of information. Keying in the same information into multiple systems slows you down and opens you up to errors. Integrated systems automatically share the information for you, allowing you to make faster, more informed business decisions.  
  • Become even more efficient. Reducing the number of steps it takes to complete a task by removing data entry or adding automation helps you process more jobs faster, giving you better control over your business.
    • Create invoices in Tradify and send them to your accounting software for total visibility in just one click.
  • Consistent communication. Integrating these systems eliminates any confusion that inconsistent information creates. This means you can spend more time growing your business and less time maintaining your records.

4. Find the right tools that work together

Running a trade business is a busy gig. From one hour to the next, you could be acting as a tradesperson, a manager, or an accountant. Your business relies on how fast you’re able to move. One of the first software investments you’ll likely make is accounting software. When you do, consider job management software that will work together with it. 

The reason is clear: streamlining processes right across your business – not just your finances – will give you the control you need to grow your trade business quickly.

The following content was originally published by Tradify. We have updated some of this article for our readers.

Leading a business can be hard work. But the good news is that you’re not the only founder, owner-manager or CEO who’s treading this path. Networking with your peers is a great way to make connections with other entrepreneurs, while also looking for new business opportunities.

5 ways to improve your networking skills

Being part of a wide network of entrepreneurs and business leaders is about being part of the business community. It’s about giving to the community, as well as being supported by it – and knowing that you’re surrounded by other entrepreneurs who share very similar goals.

So, networking is a valuable thing to take part in, whether you’re a brand new founder, or a seasoned business owner who’s been around the track a few times. But how do you get GOOD at networking? There’s no simple answer to this, but we’ve highlighted five key things you can do to get more from your networking and to give more back to your community.

To become a better networker:

• • Be authentic and relational – if you’re going to make a success of networking, it naturally makes sense to appeal to people. Being genuine and interested in getting to know your peers will help a lot. Be yourself, be friendly and take the time to learn about the people you meet. Ask questions about their work, their interests, their goals and what generally makes them tick. This isn’t just about ‘doing business’, remember; it’s about getting to know people as people, and being part of this community.
  • Be a good listener and ask thoughtful questions – in networking, listening is just as important as talking. When you’re talking to someone, listen intently, look people in the eye and pay real attention. Resist the temptation to interrupt or start thinking about what you’re going to say next. Instead, focus on understanding their perspective and asking thoughtful questions. Ultimately, you want to make it clear that you’re interested in what this person has to say, and that you’ve found some common ground together.
  • Be helpful and offer your expertise – one of the best ways to build relationships is to be an asset to your industry community. Look for ways to use your experience and skills, and offer ideas, advice and help (if people are looking for assistance). This could mean sharing your industry knowledge, providing resources, or making introductions to other people in your network. When you help others, you help the community, underline that you’re a valuable resource and that you’re interested in building relationships.
  • Be an asset to your niche/sector/industry – share new ideas, drive innovation and be a voice that stands out in the network. If you want to make an impact, it’s important to stand out from the crowd. A good approach is to be someone who’s known for their expertise, creativity and thought leadership. Get involved in industry discussions, and write articles and blog posts about the big issues in your sector. The more you contribute to your niche/sector/industry, the faster your star will rise.
  • Follow up after networking events – getting the networking right is one thing, but it’s important to also get your follow-ups right too. Get people’s business cards, phone numbers or emails and get in touch after the event to touch base. A quick email or LinkedIn message could well be the start of a blossoming new business relationship or friendship. It’s also a good idea to connect on social media and to comment, share and repost your new contact’s posts.

What are the best places for networking?

• • Industry-specific events and conferences – industry events are great places to rub shoulders with other professionals in your field. You can get involved in discussions, learn about the latest trends and developments and even present your own sessions.
  • Social media platforms – you’re spoiled for choice when it comes to social media sites to help your industry networking. LinkedIn, X(Twitter), Facebook, Threads and BlueSky all help you connect with the people you’ve met through your networking, and build on those relationships to share your insights and ideas more widely.
  • Local meetups and workshops – most cities and towns will have regular business meetups and workshops that you can dip into. Business breakfast events and evening get-togethers are a great way to meet local business owners and to find out what’s going on in your local community.

If you’re looking to raise your profile and improve your networking, we’d love to lend a helping hand. We’re connected to hundreds of different business owners and leaders – and we’re more than happy to introduce you.

Our advice is to put yourself out there in your industry community, track down your local business peers and get busy with your content marketing and social media posts.

The following content was originally published by BOMA. We have updated some of this article for our readers.

If you’re planning to found a new business, you’ll need enough startup capital to get this venture off the ground.

And once you’re up and running, you’ll need additional business finance and investment at each stage of your growth and expansion along the business journey.

But where does this business funding come from? And what are the best routes for accessing the finance you need to bring your business plans to life?

Five way to access the right funding

There are multiple routes to funding, and many specialist types of finance that cater to a specific industry or a particular business type. However, it’s always a good idea to understand the funding fundamentals and the options they offer for your business.

We’ve summarized five different funding routes that are worth considering:

1. Bank loans and overdrafts

Traditionally, your bank was the go-to place for business funding. Taking out a business loan allows you to pay back the loan over an agreed period, and in easy installments. Extending your business overdraft can give you more credit to play with. But in recent times, banks have become more reticent to lend and will need cast-iron evidence of your ability to repay any agreed loan or overdraft.

• • • Pros: Large sums of money can be borrowed
    • Cons: Strict lending criteria and may require collateral

2. Private investors

Getting high-net-worth individuals to invest in businesses is another well-worn path to funding. Private investors can be a great source of funding if your business is unable to qualify for a bank loan or needs a large amount of funding quickly. However, investors will usually expect shares in the business and some form of control over the direction and running of the company. Shrewd investors will also want a guaranteed return on their investment (ROI).

• • •  Pros: Can provide large sums of funding and more flexible criteria than banks
    •  Cons: Can be difficult to find private investors and they will expect good ROI

3. Business loan providers and niche industry lenders

There are many lenders that specialize in providing loans to businesses in specific sectors, or at particular points in the business journey. These lenders may have less stringent lending criteria than the main high street banks and can offer more flexible repayment terms. If you’re trading in a niche and need money quickly, these lenders are well worth adding to the mix.

• • • Pros: Less stringent lending criteria than banks and flexible repayments
    • Cons: Interest rates may be higher than bank loans and collateral may be needed against your loan

4. R&D tax credits

R&D tax credits are government incentives that can help you offset the cost of your company’s research and development activities. R&D tax credits can be a valuable source of funding for businesses that are developing new products or services and will help to cut your corporation tax bill – savings that can then be reinvested back into the business.

• • • Pros: Offsets the cost of R&D activities and can be claimed retrospectively
    • Cons: The application process can be complex and time-consuming

5. Government loans and tax incentives

There are a huge range of government loans, enterprise incentives, grants and tax incentives available to your businesses. These funding options can be used for a variety of purposes, such as starting a new business, expanding an existing business or creating jobs. Each country and territory will have its own specific government incentives, so it’s worth doing your own research, or working closely with your advisers to find the most suitable loans, grants and incentives in your particular area.

• • • Pros: Provides a valuable source of funding, and (if you meet the criteria) some grants may not require repayment
    • Cons: Criteria must be met in full and the application process can sometimes be complex and time-consuming

Talk to us about setting up your funding strategy

Whatever point you’re at in the business journey, there’s real value in having a clear funding strategy set up and agreed for your business. The right routes to funding will depend on your business goals, your ability to make repayments and whether your sector is classed as high or low risk. But having a funding strategy in place really is an essential element of your planning.

As your adviser, we can run you through the funding options available to you, with industry-specific advice on the most practical and effective routes to finance.

The following content was originally published by BOMA. We have updated some of this article for our readers.

For your business to make money, you need to generate revenue.

You produce revenue through your usual business activity, by making sales, getting your invoices paid, or taking cash from paying customers. So, the better you are at selling your products/services and bringing money into the business, the higher your revenue levels will be.

But what actually drives these revenue levels? And how do you get in control of these drivers?

Knowing where your cash is coming from is more crucial than ever

As a trading company, you face the multiple challenges of a global recession, an increase in online consumer buying and a ‘new normal’ when it comes to trading, markets and buying expectations. The better you can understand the nature of your revenue and its drivers, the more you can flex, manage and control your ability to generate this income.

This helps your medium to long-term strategic thinking, and your decision-making, allowing you to be confident that you’re focusing on the business areas that deliver maximum revenue.

Import areas to consider will include:

• • Revenue channels – where does your revenue actually come from? Do you create income from online sales and ecommerce, through retail sales in bricks and mortar stores, or through wholesales to other businesses? You may focus on just one of these channels, or it could be that you use a mixture of two, three or more.
  • Revenue streams – your total revenue will be made up of a number of different ‘streams’ So, you might be a coffee shop, whose revenue streams include coffee sales, cake and pastry sales and lunch sales. Knowing which revenue streams you rely on, which are most productive and what return they are delivering allows you to make decisions. If 80% of your income comes from 20% of your products, perhaps you need to tighten up your product range and ditch some of the poor sellers. If you’re selling more services to one particular industry, perhaps you should focus more marketing in this specific niche, or downscale your sales activity in less profitable niches.
  • Product/service split – Do you know which products/services are the most profitable in the business? Which products/services have been resilient to market changes (giving you some revenue stability) and which have adapted well to change? The more you can dive into your metrics and find the most productive and adaptable products and services, the greater your ability is to provide constant and evolving revenue for the business.
  • Value vs volume – Is your revenue based on selling a high volume of products/services at low margin, or low volume at a high margin? Based on this, can you move your margin down to create a more attractive price point (and more value for customers)? Or are their ways to push volume up, shifting more units and boosting total revenue? By diversifying into new channels, new streams or new products/services you can aim to balance value and volume to create brand new sales – and higher revenue levels.

Talk to us about exploring your revenue drivers

If you want to boost revenue and increase your overall profitability, come and talk to us. We’ll review the numbers in your business, help you to understand your revenue drivers and will give you proactive advice on enhancing your total revenue as a company.

Get in touch to kickstart your revenue generation.

The following content was originally published by BOMA. We have updated some of this article for our readers.

Getting your head around the basics of bookkeeping, accounting and good financial practice may not come naturally to all business owners.

But the better you understand the numbers, the more control you’ll have over your business and your decision-making.

To get you started, here’s a rundown of some of the main financial terms and how they apply to the financial management of your startup.

Revenue and money coming into the business

Most of us understand that revenue is the income you generate through your sales. If you multiply your average sale price by the number of units sold, this is the top level number you get. It’s a gross figure (i.e. before any deductions) and gives you a clear idea of how much money the business is generating through its sales activity.

Revenue can come from various sources, and each income source is known as a ‘revenue stream’. Revenue streams could include product sales, income from services you provide, income from intellectual property you own (like patents) or income from assets the business owns, like property you rent out at a profit.

Having several revenue streams is a good idea, as it spreads your income generation across multiple areas and reduces the risk of one revenue stream drying up.

Expenditure and money going out of the business

Expenditure refers to any payments you make (either in cash or credit) against the purchase of goods and/or services. In a nutshell, expenditure is the money that’s going OUT of the business, so it’s important to have a good grip on these costs and to make sure you’re not spending any more money than you need to.

Costs that would fall under expenses include your supplier bills, your payroll expenses, your operational overheads and the costs of any raw materials and goods you buy to keep the business running. The less you pay out in these expenses and overheads, the more of your revenue will end up as profit – as we’ll see in the next section.

Profit and loss (P&L)

Your profit and loss statement (usually referred to as your P&L) is an incredibly important financial report to get your head around. The P&L summarizes your revenues and expenditure over the course of a period – usually for the month, quarter or year that’s just ended – and gives you a breakdown of the profits and losses the business made during that period.

If you make more in sales revenues than you spend in outgoing expenses, you make a profit (and that’s vital to your success). For any business to be financially viable, your financial model MUST be able to generate profit. Without profits, the business can’t make money, you can’t reinvest back into the company to drive growth, and you (personally) won’t get paid anything.

Cashflow statements and positive cashflow

Your cashflow statement is another vital tool in your accounting toolbox. To keep the lights on in the business, you need enough available cash to cover your everyday expenses. Your cashflow statement shows you the cash inflows (money coming into the business from revenues etc.) alongside the cash outflows (payments to suppliers, or operational overheads etc).

For the business to have enough cash in the pot, your cash inflows MUST outweigh your cash outflows. This is called being in a ‘positive cashflow position’ and it’s a level of financial health that every startup should aim for. By tracking inflows and outflows, and projecting them forwards in time to create forecasts, you can make sure there’s always available cash in the business.

Improving your understanding of the numbers

It takes time to pick up the financial jargon and accounting terms that will help you understand your accounts. But don’t despair: as your startup journey evolves you’ll gradually begin to get your head around the important numbers, metrics and reports.

Other important finance terms to understand include

• • Turnover = the total sales revenue made in a period. It’s also sometimes called ‘gross revenue’, as it’s the number prior to any deductions being made.
  • Assets = the things you own in the business, like equipment, property or cash etc.
  • Liabilities = the things you owe to other people, like bills, debts and loan repayments.
  • Balance sheet = a snapshot of your assets and liabilities on a given date.
  • Working capital = your current assets minus your liabilities. In common usage, it’s the capital (money) you have in the business to keep the company operational and trading.
  • Funding = bringing additional capital into the business, usually in the form of business finance products like loans, or through private investment from outside sources.
  • Credit score = a rating given to the financial health and risk level of the business. The bigger the score, the lower the risk – and the better your access to funding.

Talk to us about business planning

If you’re planning for your business, please do get in touch. We’ll help you set up the ideal accounting system, so you’re in complete control of your finances.

Talk to us about your new business.

The following content was originally published by BOMA. We have updated some of this article for our readers.