Good bookkeeping for tradies is a weekly habit, not a weekend rebuild before the BAS. Code every bank and card transaction to a job or expense category each week, reconcile your accounts each month, and move GST and tax withheld into a separate tax account as you go. Do that and the BAS becomes a quick check instead of a three-month reconstruction.
The bank balance on a Thursday night can look healthy while part of it is GST, part is tax you’ve withheld from wages, and part belongs to a job you haven’t finished costing.
Below is a weekly, monthly and quarterly checklist, how to set up your accounts and vehicle records, when GST and BAS apply, a worked GST example, and the mistakes we see most often.
Key takeaways
- Code transactions to a job code weekly so you can see which jobs make money.
- Keep a separate tax account for GST and PAYG withheld.
- You must register for GST once GST turnover reaches $75,000.
- From 1 July 2026, super guarantee is 12% of qualifying earnings, paid each payday under Payday Super.
- Keep most business records for 5 years.
What should a tradie bookkeeping checklist include?
| How often | Task | Why it matters |
|---|---|---|
| Weekly | Code bank and card transactions to a job or expense category | Keeps job margins and GST current |
| Weekly | Invoice finished work and record payments against the job | Shows who owes you and which jobs are open |
| Weekly | Move GST and PAYG withheld into the tax account | Stops tax money being spent on materials |
| Monthly | Reconcile bank and card accounts | Catches duplicates and missing entries |
| Monthly | Compare each job’s costs with its quote | Shows where margins are leaking |
| Each payday | Pay wages, withholding and super | Super is now due each payday |
| Quarterly | Prepare and lodge the BAS | The usual cycle under $20 million GST turnover |
| Yearly | Lodge the TPAR if you pay building and construction contractors | Due by 28 August |
| Ongoing | Keep records for 5 years | Supports what you reported |
Two habits do most of the work: coding every line to a job each week, and comparing job costs with the quote each month. The rest is housekeeping around them.
How should a tradie set up their accounts?
- Separate business account and card. Keep personal spending off them so the bank feed is a business record.
- A tax account. Move GST collected and any PAYG withheld into it when you’re paid or run payroll.
- A short chart of accounts: materials, subcontractors, wages, vehicle, tools, insurance, phone, software and fuel.
- One job code per project, so every invoice and receipt ties to a job.
- Tax codes set up front in your accounting software for taxable sales, purchases and GST-free items.
- A receipt app. Photograph the docket the day you pay and attach it to the bank line.
Vehicle and tool records
| Method | How it works | Things to know |
|---|---|---|
| Logbook | Keep a logbook for at least 12 continuous weeks, then claim the business-use percentage of your car expenses | The 12 weeks must be representative of your travel through the year |
| Cents per kilometre | Multiply business kilometres by the ATO rate for the year | Only for cars, used by sole traders and some partnerships, up to 5,000 business km per car |
See the ATO’s logbook method and cents per kilometre method pages for the details, and our guide to car logbook rules for the current rate. Keep a simple tool register with each item, date, cost and business-use share.
When does a tradie need to register for GST and lodge a BAS?
Under the ATO registration rules, you must register for GST when your GST turnover (gross business income, minus GST) reaches $75,000 or more, either for this month plus the previous 11 months, or this month plus the next 11 months. The test is turnover, not profit.
| GST turnover | What applies |
|---|---|
| Under $75,000 | Registration is optional |
| $75,000 or more | Must register, charge GST and lodge a BAS |
| Under $10 million | Simpler BAS reporting available, and you can choose cash or non-cash accounting |
| $20 million or more | GST must be reported monthly |
Most registered tradies report quarterly. The ATO reporting rules say you report quarterly if GST turnover is under $20 million and the ATO hasn’t told you to report monthly. Our BAS and GST service can prepare it from your coded transactions.
Worked example: cash vs non-cash GST for a plumber
The facts
A hypothetical plumber issues $66,000 of invoices (including GST) in the quarter. By the end of the quarter, customers have paid $55,000 of that and $11,000 is still owing. The plumber paid $22,000 of supplier bills (including GST) in the same quarter.
Option 1: non-cash (accruals) basis
- GST on sales: $66,000 ÷ 11 = $6,000
- GST credits on purchases: $22,000 ÷ 11 = $2,000
- Net GST payable: $6,000 − $2,000 = $4,000
Option 2: cash basis
- GST on sales received: $55,000 ÷ 11 = $5,000
- GST credits on purchases paid: $22,000 ÷ 11 = $2,000
- Net GST payable: $5,000 − $2,000 = $3,000
On a cash basis, the $1,000 of GST on the unpaid $11,000 moves to the quarter the customer pays. The ATO says businesses with aggregated turnover under $10 million can choose either method. Cash suits tradies with slow payers or retentions. Talk to your tax agent before switching. Our guide to the cash accounting method explains more.
Tip
Whichever method you use, the GST isn’t yours. Move it to the tax account as soon as the customer pays.
How should tradies track job costs?
- Record the quote on the job code, with expected materials, labour and subcontractor costs.
- Raise progress invoices at each milestone and code deposits to that job.
- Attach supplier bills, timesheets and hire dockets to the same job.
- Split materials, labour, subcontractors and hire so one big “job cost” line doesn’t hide a leak.
- Compare actual costs with the quote after each milestone.
- Review unpaid invoices every week.
If you can’t name the profit on your last three finished jobs, your job codes aren’t doing their work yet.
What changes when a tradie pays employees or subcontractors?
An ABN on an invoice doesn’t decide whether a worker is an employee or a contractor. Our employee vs contractor guide walks through the test. For employees, you withhold tax, report through Single Touch Payroll and pay super.
The ATO super guarantee page says that with Payday Super, from 1 July 2026 employers must pay super for each payday, calculated as 12% of each eligible employee’s qualifying earnings. Our payroll service can handle withholding, STP and super.
If you’re in building and construction and pay subcontractors, you’ll usually need to lodge a TPAR by 28 August each year.
Watch out
Super used to be paid quarterly. Under Payday Super it’s due with each pay run, so build it into payroll rather than saving it for the end of the quarter.
What bookkeeping mistakes do tradies make most often?
- Duplicate supplier bills that inflate job costs and GST credits.
- One card for home and work, which turns every code into a guess.
- Claiming GST credits without a tax invoice attached.
- Coding a month of receipts in one sitting from memory.
- Spending withheld PAYG or GST on materials, which leaves a debt to the ATO.
- Claiming private use in full for a ute, phone or home office.
The ATO record-keeping rules say most records must be kept for 5 years, so keep bank statements, supplier invoices, job files, logbooks and BAS workpapers together. If you’re a sole trader, our guide to sole trader tax obligations covers the wider picture.
FAQ about bookkeeping for tradies
How often should tradies do their bookkeeping?
Code bank and card transactions weekly, reconcile accounts monthly and lodge the BAS quarterly. Weekly coding keeps job margins and GST up to date and avoids a rush before the BAS.
When does a tradie need to register for GST?
You must register for GST once your GST turnover reaches $75,000 or more, based on the current or projected 12 months. The test is turnover, not profit.
Should a tradie use cash or non-cash accounting for GST?
Businesses with aggregated turnover under $10 million can choose either. Cash accounting reports GST when you are paid or pay a bill, which can suit tradies with slow payers. Get advice before switching.
How often do tradies pay super for employees?
From 1 July 2026, under Payday Super, employers must pay super guarantee for each payday, at 12% of each eligible employee’s qualifying earnings.
How long do tradies need to keep business records?
Most business records must be kept for 5 years. Some records need to be kept longer, for example where they support an assessment that is still open to review.
Talk to specialist before it costs you
15-minute discovery call. No obligation, no jargon.
Talk to a registered tax agent
Want your books cleaned up before the next BAS? Speak with a registered tax agent at Nanak Accountants & Associates on 1300 626 258, or book a consultation with our team. We provide bookkeeping services and work with tradies across Australia.
This article is general information only and is not personal financial or tax advice. Information checked against ATO sources on 8 November 2026.
