Tradies and trades business owners agree that paperwork is one of the least fun aspects of the trade. However, dealing with audit, penalty or dispute is even worse. Even if you’re like most tradies and builders who produce excellent work, some clients will still make complaints or lodge claims against you. How can you protect yourself? Good record keeping is one way to prove your side. These could be implemented in any trades and building business.
How tradies and builders can keep good records for accounting and bookkeeping
Tradies and builders take photos of their finished work and while it’s good for marketing, these can protect you from disputes as well. It’s good to take photos before, during and after each job. Once there was an insurance claim where an electrician scratched a glass splashback while installing a rangehood. He lodged a claim through his insurance broker but still had to pay an excess of $500. If the electrician didn’t believe he caused the damage and had no photos to back him up, he would suffer all that, plus an increased premium. However, if he had photos as evidence, there probably won’t be any claim. For tradies, it would also be good to record a video of each job.
As a tradie, you can also take notes using a voice recorder app on your phone. You can make a running commentary on noteworthy tasks and have evidence in case of a complaint. For building and landscaping, builders take notes which they can use to refer back in the future.
Large jobs require scope of works but you should also do it for smaller maintenance jobs. Have a written document that outlines the job to avoid possible issues. If you’re a plumber, make a document that you can show in case you would need to make a claim on your business insurance.
Have a building contract and have it signed before you undertake any work. If a client files a complaint, bring your insurance broker ASAP even if you don’t believe it’s your fault. A public liability policy includes cover for defense costs. Protect your trade business through a tradies or tool insurance. If you have questions on how you can better protect your trade business, get in touch with us!
As you look for different ways to grow and improve your business, seeking professional advice could prove to be an important and helpful decision.
You can click here to speak to a business, accounting and bookkeeping firm. We also offer hospitality business consultation and mortgage services. We will give you a call to know more about your needs. We will explain to you how we can improve your business.
We would love to help you formulate investment strategies and streamline your processes to take your business to the next level. Our goal is to help you grow your business, find ways to invest more and increase your productivity.
Phone: 1300 328 855
Office Address: 902 Howitt Street, Wendouree, Victoria 3355, Australia
Postal Address: PO Box 2234, Bakery Hill, Victoria 3354
Sky Accountants Gisborne & Macedon Ranges
Phone: 03 97444522
Office Address: 45 Hamilton Street, Gisborne, Victoria 3437, Australia
Postal Address: PO Box 270 Gisborne Victoria 3437