As a small business, it’s essential you pay as much attention to the finances as you do to the tools. Here, our experts answer questions posed by electrical contractors, just like you.

I’m a sole trader – do I really need a separate business account?

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A lot of tradies I work with start out using their personal account because it feels easier. But very quickly, things get muddy. You can’t tell what’s business income versus personal spending. You lose track of deductible expenses. And tax time becomes a stressful treasure hunt where nothing quite adds up.

A separate business account creates clean lines:

• Clarity: You immediately see what’s coming in, what’s going out, and whether the business is actually profitable.

• Cashflow control: When your business expenses come out of a dedicated account, you’re far less likely to overspend without realising.

• Tax confidence: You’ll know exactly what to hand your accountant, which means fewer surprises and better planning.

• Professionalism: Clients take you more seriously when payments run through a proper business account.

And let’s be honest… there’s a certain low-grade smug satisfaction in knowing that if (or when) the ATO ever audits you, they’re not also raising an eyebrow at how often you order Uber Eats or wondering what kind of holidays you take with your kids. Your personal life stays personal because the business account keeps everything clean, simple and above board.

My rule of thumb for sole traders is simple: make your money flow match how you want your business to grow. Separate accounts help you make better decisions and reduce the mental load. And when you feel more in control, you run your business with more confidence.

If you want to take it one step further, use that business account to create simple ‘buckets’ for tax, GST, super and profit. That’s how you stop reacting to money and start leading it.

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I’m accumulating debt every month and I really don’t know why. I’ve got a good stream of jobs coming in and cash-flow is OK. What can I do to understand where things aren’t working?

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Re-think your financial priorities

Flip Revenue – Expenses = Profit to Revenue – Profit = Expenses

Simplified profit and loss

Get clarity on where the money is actually going

Take profit

From the start, not at the end when you hope there is something left over

Get paid on time

Robust collection policy

Set your terms and stick to them

Robust collection process – have a formal process, and if you’re not paid, follow that – from reminders through to debt collection and credit reporting.

Payment model

When do you get paid? Deposits, payment schedules, payment on completion

What is written on your invoices?

Pricing and profitability

Measure how much money you’re making on each job

Auto money allocation

Putting aside taxes, expenses and profit, to always have money when you need it.

Expenses review

When was the last time you actually went through your bank statements and looked at what was coming out? What insurances, subscriptions, telephone providers, etc can you change?

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Is there any reason to give my clients longer payment terms? What are the pros and cons?

Austin Rulfs, Zanda Wealth, says: 

This can also enhance client retention, particularly in industries where your competitors are not as flexible.

Flexibility, however, should come at a cost. Giving 60- or 90-day terms will bind your cash and add risks; essentially you are funding the activities of your client. There is a price to pay for that. I recommend that companies consider the time value of money. In the case of you allowing extra time to receive payment, then you should increase the price slightly or give a short-term discount to encourage faster payment. This shields your profits while deterring misuse of the extended terms.

It is not just about being able to charge more, it is also about negotiating terms that augur well for the relationship. I would not be comfortable giving longer terms to a first-time customer, unless I have evidence of solid financial support or a down payment. It may be an indication of trust that can help maintain the relationship established with clients with a payment history.

Simply put, longer payment terms can be effective when used as an instrument, not a precondition. You must defend your cash flow, quantify the risk, and price against that. When handled with care, it will make your business appear both flexible and client-centered, but not at the expense of financial control.

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I need to buy a new ute, but haven’t got the cash sitting there to buy it outright. What are my options

Maria Beux, Director and Principal Finance Broker at EverTrue Finance, says:

If you’ve been running your business for over two years, are ABN and GST registered, have clear credit, and own property, getting finance for a new ute can be surprisingly simple. In many cases, lenders only need basic information: driver’s licence, ABN details, and a few quick questions. That’s it. No tax returns, no hassle. The process can often be wrapped up within 48 hours.

Utes are generally financed under an equipment loan, which means a fixed term, a fixed rate, and the option of a balloon payment. A balloon is a lump sum due at the end of the loan which you can pay off, refinance for another term or cover by trading in your vehicle.

Even if you don’t own property, there are still flexible options. You might just need a deposit of 10–20%, which can sometimes be covered by another unencumbered asset. The good news? There are plenty of lenders who understand the real world of trades and can tailor solutions to fit your situation.

My golden rule? Always see any asset purchase as an investment, not just an expense. Ask: will this ute make your work more efficient, reduce downtime, or help you land better jobs? If yes – that’s good debt.

Also, keep in mind that business finance can affect your future personal lending capacity. So it’s smart to think about the big picture and get advice from your broker early.

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George Shahinian, Managing Partner, Economos Group, says:

Chattel mortgages usually have competitive rates and flexible terms, making them suitable for many small businesses.

Finance lease

Under a finance lease, the lender buys the ute and leases it to you. You make monthly payments, and at the end of the lease, you can either pay out the residual value to own the ute, upgrade to a new one, or refinance the lease. Lease payments may be tax-deductible, and this option is ideal if you prefer to update vehicles regularly without tying up capital.

Commercial hire purchase

This option lets you use the ute while paying it off in instalments. Once you’ve made the final payment, ownership transfers to you. It’s a straightforward way to manage business vehicle costs, and repayments can often be structured to suit your cash flow.

Low doc and no deposit loans

If your business is newer or you have limited financial documentation, some lenders offer low doc loans, sometimes with no deposit required. These are designed for ABN holders and can be approved quickly, though they may come with higher interest rates.

Tax benefits

Financing a ute through your business can offer significant tax advantages, including GST credits, deductions for interest and depreciation, and potential instant asset write-offs for vehicles under the threshold.

Remember to:

Compare offers from multiple lenders for the best rates and terms.
Consider your business’s cash flow and choose a repayment plan that matches your income cycles. Factor in insurance and ongoing running costs when budgeting for your new ute.

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What are some of the key things to think about at the EOFY to reduce my tax bill?

Morgan Wilson, Founder and Director at Creditte, says:

Maximise immediate deductions: Take advantage of the instant asset write-off (subject to eligibility and thresholds). Purchasing tools, equipment, or a work vehicle before June 30 could provide immediate deductions.

Review super contributions: Making additional super contributions (within caps) before EOFY can be a smart way to reduce taxable income while securing your retirement.

Prepay expenses: If cash flow allows, prepaying business expenses, such as insurance, rent, or subscriptions, can bring forward deductions.

Write off bad debts: Review your accounts receivable—any unrecoverable invoices should be formally written off before EOFY to claim a tax deduction.

Take stock of stock: If you hold inventory, conducting a stocktake and writing off obsolete or damaged items can lower your taxable income.

Structure for tax efficiency: As your business grows, review whether your business structure is still the most tax-effective option. A restructure may provide benefits.

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How do I price jobs to ensure I’m making a profit and not just covering costs? 

Steve Kantor, Fractional CFO with clients in the construction and trades industry says:

When determining the percentage of profit to build into your pricing, a general rule of thumb is to aim for a profit margin of 50% for most industries. However, this can vary depending on your sector and business model. The key is to strike a balance that allows you to cover costs, remain competitive, and support your growth objectives.

When putting together quotes, it’s vital to consider more than just your profit margin. First, ensure you’ve accurately accounted for your direct costs, such as materials, labour, and other expenses directly tied to delivering your product or service. Then, factor in your overheads. These are the fixed costs you’ll incur regardless of sales, like rent, software, and administrative expenses.

Next, think about the value you’re offering. Pricing should reflect not only your costs but also the perceived value to your customers. If your service delivers exceptional results or saves the client significant time or money, your pricing should reflect that premium.

Finally, consider your market position and competitors. Undercutting may win short-term business but can erode long-term profitability. Instead, focus on differentiation and creating value.

A data-driven approach, reviewing your financials, benchmarking against competitors, and regularly reassessing your costs, will help you maintain healthy margins and sustainable growth.

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How can I raise my prices without it p*ssing people off?

Jasmine Parasram, Pricing Coach at Jasmine Designs, says:

If you aim to avoid p*ssing people off, your prices will never go up. Ultimately, you’re a business, and to grow as a business, you need to price yourself out of the market that can’t afford you. You don’t owe affordability.If you have repeat customers, giving them a one to three-month heads up that prices are going up is a great way to increase your prices while maintaining the relationship. This small act of courtesy may be the thing that sets you apart and keeps that client long-term. Communicate with them so they are well informed and aren’t shocked when it happens.

On the other hand, if most of your jobs are one-offs and most of your customers are new each time they work with you, they likely don’t know what the price was before you raised it, so you don’t have to worry about them comparing. If they did see the price before but now it’s more, that’s not on you, but a good practice is having a note stating quotes are valid for 30 days on your estimates. Prices today aren’t promised tomorrow.

Lastly, be mindful of the frequency and amount you increase your prices. Yearly is expected in most businesses, or increasing when your business changes in terms of scale or service level. A 5-10% raise is something that most customers can stomach, a 20-30% without a justifiable reason that benefits them will most likely make the customer think twice or go elsewhere. Remember, your prices need to serve the future and growth of your business first before they serve the customers’ budget.