Payments, invoicing, and late payments for Builders and Tradies
How to Handle Payments, Invoicing, and Late Payments: A Guide for Builders and Tradies
In the construction and trades industries, managing payments and invoicing effectively is crucial to maintaining healthy cash flow. At Bottrell Accounting & Financial Planning, we understand that late payments, complex invoicing, and irregular income are common challenges for tradies, builders, and other professionals in the Newcastle and Maitland areas. Late payments can stall projects, cause financial strain, and disrupt business operations if not handled properly. That’s why having clear systems for invoicing and following up on payments is essential for your business success.
In this guide, we’ll provide a detailed overview of how to handle payments, invoicing, and late payments, helping you streamline your financial processes and improve your cash flow management.
- Materials and supplies
- Subcontractor wages
- Equipment hire
- Overhead expenses like rent, utilities, and insurance
Our Newcastle & Maitland Offices:-
- Newcastle Accountants & Advisors – 45 Hunter Street, Newcastle.
- Maitland Accountants & Advisors – 93 Lawes St, East Maitland.
How to contact us
- In Person: Visit our conveniently located office at 45 Hunter St, Newcastle, NSW, 2300.
- Online: Schedule a virtual appointment via Zoom or Teams for added convenience.
- Mobile Tax Services: Benefit from the flexibility of having our expert CPA Newcastle accountants come to you for tax assistance.
- Onsite Services: Enjoy personalized services delivered directly at your place of business.
At Bottrell Accounting, we’re more than just consultants and accountants; we’re your strategic financial partners. Contact us today to discover how we can help you achieve your financial goals and secure a prosperous future .
Google Business Pages – Bottrell Accountants & Tax Agents
Bottrell Accountants Main Website – www.bottrellaccounting.com.au
Accountant Newcastle – 45 Hunter St, Newcastle, NSW, 2300
Accountant Maitland – 93 Lawes St, East Maitland, NSW, 2320
Our Accounting Services
Taxation
Our experienced tax professionals at Bottrell Accounting ensure that your tax obligations are met efficiently. We also focus on maximizing your tax savings through strategic planning. Our services include:
-Personal Tax Returns: Accurate preparation and lodgement of personal income tax returns.
- Rental Property Tax Returns: Expert handling of tax matters related to rental properties.
- Business Tax Returns: Comprehensive support for business tax planning and compliance.
Bookkeeping
Maintaining organized financial records is crucial for informed decision-making. Our bookkeeping services cover:
- Bookkeeping Processing: Timely and accurate record-keeping for your business transactions.
- Bookkeeping Data Entry: Efficient data entry to keep your financial records up-to-date.
Cash Flow Management
Optimizing cash flow is essential for financial stability. Our tailored solutions include:
- Cashflow Forecast: Predictive analysis to help you manage cash flow effectively.
- 3Way Cashflow: Comprehensive insights into your inflows and outflows.
Payroll Processing
Let us handle payroll processing for you. Our services ensure accurate and timely payments to your employees while staying compliant with relevant regulations.
Financial Reporting
Financial Reporting
Gain valuable insights into your financial performance with our comprehensive reporting services:
- Company Tax Accounting: Accurate preparation of tax-related financial statements.
- Business Tax Accounting: Detailed reporting for business tax purposes.
- SMSF Tax Accounting: Specialized reporting for Self-Managed Superannuation Funds.
Financial Control Services
Our financial control services help businesses establish robust systems and controls, ensuring accuracy, transparency, and compliance.
Invoicing: Best Practices for Tradies and Builders
A clear and timely invoicing process is the foundation of effective cash flow management. Here are some best practices for ensuring your invoices are paid on time:
1. Issue Invoices Promptly
- Tip: Set a policy in your business to issue invoices within 24 to 48 hours of completing a job or hitting a milestone.
- Track invoice status (sent, viewed, paid, overdue)
- Automate reminders for unpaid invoices
- Sync invoices with your bank accounts to update payments in real-time
2. Set Clear Payment Terms
- Best Practice: For smaller jobs, request payment within 7–14 days. For larger construction projects, 30-day terms may be more reasonable.
- Payment due date
- Accepted payment methods (e.g., bank transfer, credit card, etc.)
- Any late payment penalties
3. Request Upfront Deposits and Milestone Payments
- Deposit: Before work commences
- Progress Payment: Upon completion of 50% of the work
- Final Payment: After project completion
Accountants Newcastle – 45 Hunter St, Newcastle, NSW, 2300
Accountants Maitland – 93 Lawes St, East Maitland, NSW, 2320
Why Choose Bottrell Accounting & Financial Planning?
- Expert advice on invoicing, payments, and cash flow management
- Tailored solutions for reducing late payments and improving cash flow
- Support in implementing accounting software to automate your processes
- A dedicated team with local industry knowledge and experience
- Newcastle Office: 45 Hunter St, Newcastle, NSW, 2300
- Maitland Office: 93 Lawes St, East Maitland, NSW, 2323
- Phone: 1300 788 491
- Email: admin@bottrellaccounting.com.au
12+ Years Experience
With over a decade of experience, trust Bottrell Accountants & Financial Advisors for seasoned financial expertise.
Award Winning
Benefit from the knowledge and expertise of our certified accountants, who excel in their respective fields.
Qualified Accountants
Our team of chartered accountants & CPA, with over a decade of experience, brings a deep understanding of East Maitland's business landscape.
Specialist Services
Explore our specialized tax services, covering everything from individual income tax to corporate tax planning.
Handling Late Payments
Late payments are one of the most frustrating aspects of running a trades or construction business. They can disrupt your cash flow, delay projects, and increase financial strain. However, there are strategies you can implement to reduce the likelihood of late payments and handle them effectively when they occur.
1. Send Payment Reminders
- Initial Reminder: A few days before the payment is due.
- Follow-Up Reminder: The day after the payment is overdue.
- Final Reminder: A week after the due date, if payment is still outstanding.
2. Charge Late Payment Fees
3. Offer Early Payment Discounts
4. Follow a Structured Collection Process
- Sending formal reminders via email and mail
- Making phone calls to discuss the overdue payment and negotiate a payment plan if necessary
- Issuing a final demand letter stating that further action will be taken if payment isn’t received within a specified time frame (e.g., 7 days)
5. Escalate to Debt Collection or Legal Action
Simplify Payments with Modern Solutions
- Bank transfers: Ensure your bank details are clearly listed on every invoice.
- Credit card payments: Many clients prefer the convenience of paying by card, which also offers faster processing times.
- Online payment systems: Platforms like PayPal or Stripe can be integrated with your invoicing software, making it simple for clients to pay online with just a few clicks.