Running your own small business means you get to call the shots, but it’s not all sunshine and rainbows. One of the biggest headaches for small sparkie businesses is keeping the finances in check.

Bustling as hard as you can on jobs, chasing clients, scheduling appointments and returning calls, it’s no surprise invoices slip through the cracks and go unpaid. Then, there’s the mess of overdue bills and a cash flow disaster.

“This is what tradie business owners get wrong: they try to handle all the business admin themselves, even when they have no experience and sometimes no clue,” Fergus founder Dan Pollard says.

“Most sparkies spend four years doing an apprenticeship to master their trade. Running a business is a whole other trade on its own. And finance? It’s one of the trickiest parts to nail down. Get it right or watch your business struggle.”

Nine percent of small businesses in the electricity, gas and water sector have payments that are 60 days or more overdue (compared to just 2.3% for large businesses). Aside from possibly dealing with high interest rates, inflation, labour shortages and supply chain problems, the last thing an employer needs are unpaid invoices ruining cash.

The good news is that there are ways sparkies can lower their financial stresses and keep a closer eye on unpaid invoices so that cash is where it should be: in the working capital.

Trim the fat

Start cutting out unnecessary expenses. Costs pile up fast, and if you’re not watching the books, you’ll spend more than you make. Check weekly expenses religiously and make it a habit to cut one cost completely every fortnight. Talking to suppliers and haggling can also result in better terms. Keep an eye on service pricing and compare it to competitors and market rates to stay competitive without slashing your profits.

“You’ll find way more unnecessary expenses in your business than you expect. Ignoring these money drains won’t grow your business, they will just dial-up your financial stress,’ Daniel says.

Get real about budgeting  

Hate budgeting? Tough luck. If expenses are unknown, if an employer can’t see whether they’re overspending, how many jobs are lined up or whether there’s enough working capital to cover the month, they’re in for a world of hurt.

Budgeting means more than just tracking income and expenses. It’s about setting up a budget and forecasting future cash flow. This lets financial bottlenecks be identified, allowing an employer to plan early. Monthly or quarterly financial reviews will help tweak strategies and manage debts more efficiently.

Invest in tools that can do the work for you  

Want to run a successful tradie business? You need the right tool, the digital kind. Smart job management software designed for tradies can transform financial management and operational efficiency. These tools help schedule jobs, dispatch technicians, track time and manage inventory in real time. Most importantly, to cut down on financial stress, this software integrates with accounting systems to streamline billing and invoicing, keeping financial data accurate and up to date.

The secret sauce: the right tools and admin together  

Now that the right tools are in place, it’s time to get in the right people: admin staff. Using the software manages the paperwork and information efficiently, while admin staff ensures everything runs smoothly, bills get paid on time, invoices are sent and followed up and the business keeps moving forward.

“The real secret to my success? Combining the right tools with the right admin staff. Having smart job management software and skilled office personnel working together from day one was a game-changer,” Daniel says.

“This combo allowed us to streamline operations, stay on top of invoicing and keep the cash flowing. By investing in technology and human resources, we created a balanced approach that supported sustainable growth and reduced financial stress.”

Daniels adds: “It’s time to get smart or get left behind. You don’t need to be an expert in everything to run a successful tradie business; you just need to use your brain. Know what needs to be done but leave the ‘how’ to the experts.”