Cash‑flow Survival Guide for Tradies: 8 Tips to Keep Your Trade Business Running Smoothly

1. Ask for a deposit before you pick up the tools

Long projects often require thousands of dollars in materials and labour before you can send the final invoice. Collecting a deposit up front ensures you have funds to buy supplies and pay wages without dipping into your personal savings. A deposit also screens out clients who may have trouble paying later. A common approach is 10 percent on acceptance, 50 percent when work begins and the remainder on completion.

How Thriday helps: Thriday’s multi‑account banking lets you automatically allocate deposits into separate profit, tax and expenses sub‑accounts. You always know how much of a deposit is earmarked for materials or wages and how much is yours to keep.

2. Invoice promptly and set consistent payment terms

Late invoicing signals disorganisation and delays your cash coming in. Establish a regular schedule for sending invoices – for example, every Friday or at the completion of each stage of a project. Include clear payment terms on every invoice and consider offering a small discount for early payment or charging a fee for late payment. Fortnightly billing can smooth out your cash flow compared to monthly invoicing.

How Thriday helps: Thriday’s mobile invoicing tool lets you create and send professional invoices from your phone as soon as you finish a job. Automated reminders chase up overdue bills so you can spend your evenings relaxing rather than following up payments.

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3. Track every dollar: know your materials, overheads and labour

To price jobs accurately you need a system for tracking costs. Record how much you spend on materials, overheads and labour for each job so you can see where money is going and identify profitable projects. When you know your numbers you can quote with confidence and avoid under‑pricing.

How Thriday helps: Thriday captures expenses via receipt scanning and categorises them in real time.

4. Choose your equipment wisely

Tools are essential to quality work, but they can be a major drain on cash. It’s often better to invest in high‑quality tools that last rather than buying cheap equipment that breaks quickly. If you’re spending too much on equipment, explore lower‑priced alternatives, hire or lease items you use infrequently and adjust your pricing accordingly.

How Thriday helps: Thriday’s budgeting tools monitor your equipment spending. You can see whether leases or purchases make more sense and set tasks to put money aside for future tool replacements.

5. Create a reliable workflow and forecasting system

Busy tradies juggle quotes, supply deliveries, scheduling and labour. Organising these moving parts is vital for cash flow. Develop a system for organising quotes, forecasting your workload and anticipating payments. Knowing your future workload allows you to plan cash‑flow needs and reduces stress. A forecast helps you determine when large expenses – insurance, tools or vehicle maintenance – will hit and when big invoices will be paid.

How Thriday helps: Thriday’s AI forecasting tool predicts your future cash position based on past transactions, outstanding invoices and recurring bills. Visual graphs make it easy to see when you might experience a shortfall and plan accordingly.

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6. Get invoice‑intelligent and incentivise early payment

Chasing payments is time‑consuming. Make invoicing part of your routine by blocking out time each week or fortnight. Encourage clients to pay sooner by offering a small discount for early payment or imposing a late fee. This simple tactic can dramatically improve cash inflow and show clients you take your business seriously.

How Thriday helps: Thriday allows you to set automatic payment reminders and send customers a payment link that offers card or bank transfer options. You can also add early‑payment incentives directly to your invoice template.

7. Spread out costs and use credit strategically

Paying cash for supplies avoids interest, but draining your bank account can leave you short when unexpected expenses arise. Don’t be afraid to use loans or a line of credit to finance equipment purchases or cover short‑term expenses. Preserve cash for emergencies and negotiate favourable credit terms with suppliers.

How Thriday helps: You can schedule payments in Thriday to avoid late fees and allocate credit repayments to your expenses sub‑account.

8. Build a “rainy‑day” reserve and pay yourself

Unforeseen expenses like vehicle breakdowns or project cancellations can disrupt your finances. Allocate a portion of each payment into a dedicated emergency fund. Many tradies also neglect to pay themselves regularly, which can lead to personal financial stress. Setting up a regular wage ensures you treat yourself like any other employee.

How Thriday helps: Thriday’s “Profit First” banking model automatically allocates percentages of each deposit into different sub‑accounts, including a profit account and a tax account. This ensures there’s always a buffer for emergencies and that you pay yourself first.

Final thoughts

Managing cash flow is the foundation of a successful trade business. By asking for deposits, invoicing promptly, tracking expenses, planning your workflow, incentivising early payment, using credit strategically and building reserves, you can avoid the feast‑or‑famine cycle that plagues so many tradies. Thriday’s integrated banking and accounting platform automates these tasks, giving you more time on the tools and less time chasing invoices.