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The numbers every tradie owner should know
Short answer: you need roughly seven numbers, checked monthly, not once a year at tax time. Know these and you can see problems coming instead of finding out when the money's gone.
Ask most tradies their gross margin and you'll get a blank stare. They can tell you the footy scores from 1998 but not what they make on a job. You can't fix what you don't measure.
The numbers that actually matter
- Gross margin — what's left after the direct cost of doing the work
- Net profit — what's left after everything, including you
- True cost per labour hour — what an hour really costs to put on site
- Quote win rate — how many quotes turn into jobs
- Revenue vs last year — are you actually growing
- Debtors — who owes you, and how old is it
- Cash set aside for tax and GST — money that isn't really yours
Check them monthly, not yearly
Most owners look at their numbers once a year when the accountant does the tax return, by which point it's history. A monthly glance at these seven turns your numbers from a report card into a steering wheel.
You don't need to be an accountant
You need a simple dashboard and ten minutes a month. Your bookkeeper or accounting software can surface most of this. The skill isn't the maths, it's the habit of looking.
Common questions
What financial reports should a tradie look at?
A profit and loss monthly, a cash flow view, and an aged debtors list showing who owes you and how long it's been.
What's a good gross margin for a trade business?
It varies by trade, so the important thing is knowing yours and watching the trend. A margin that's slowly shrinking is a warning even if the revenue looks fine.
How often should I look at my numbers?
Monthly at least. Once a year at tax time is too late to change anything.
Want to get off the tools?
Start with a free 30-minute strategy session. We work out why the job still runs through you, what to hand over first, and a realistic date you could be off the tools with the business still growing. You leave with that blueprint whether or not we ever work together. If you go further, our first paid session is guaranteed to find at least $100,000, or you get your money back.
“I stopped having to spend every night catching up on paperwork and chasing jobs. The biggest win? I can knock off and actually be present with my family.”Jason M — fencing & gatesBook your free session