Top Bookkeeping Mistakes Hawkesbury Tradies Make
Running a trade business in the Hawkesbury area isn’t for the faint-hearted. You’re on the tools all day, quoting jobs at night, and still trying to squeeze in time for paperwork somewhere in between. Whether you’re a sparkie, chippy, landscaper or plumber, keeping your books in order often falls to the bottom of the list. until tax time hits like a tonne of bricks.
We get it. DIY bookkeeping seems like a good way to save time and cash. But what if we told you that those spreadsheets, missing receipts and off-the-cuff numbers could be costing you thousands in the long run?
Let’s break down the most common bookkeeping mistakes we see tradies make across Windsor, Richmond, Penrith, and what to do instead.
1. Miscalculating Vehicle Expenses
You’d be hard-pressed to find a tradie in Hawkesbury without a ute or work van. But how you track those expenses matters more than you think.
Most sole traders either don’t claim vehicle deductions at all, or they overdo it and raise a red flag with the ATO. There are two methods to claim: the cents per kilometre method (up to 5,000km without a logbook) or the logbook method (which gives you a percentage based on actual work use). If you’re not tracking this correctly, you could be underclaiming or exposing yourself to audit risk.
What to do:
Keep a logbook for at least 12 weeks once a year, or talk to a tax accountant in Penrith NSW or Windsor who can help you nail the method that suits your setup best.
2. Not Claiming All Your Deductions
Here’s a tough pill to swallow: if you’re not tracking your deductible expenses properly, you’re probably paying too much tax. It’s not just about tools, although that counts too.
You can also claim:
Work uniforms and safety gear
Equipment hire and purchases
Phone, internet, and software subscriptions
Fuel, servicing, and rego (work-related % only)
Materials used for jobs
Subbies you pay to help finish a job
The problem? If all of this lives in a shoebox or random texts to your accountant, you’re probably missing a big chunk of what you’re entitled to.
3. Using the Wrong Business Structure
We see this one all the time, a tradie registers as a company because it “looks more legit” or because they were told it’s better for tax. Truth is, not everyone needs a Pty Ltd.
In fact, if you’re a solo tradie with no staff or investors, staying as a sole trader might save you time, admin and money.
Why?
It’s cheaper to set up and maintain
Tax is simpler — no separate company return
You don’t need ASIC reporting or annual reviews
Drawing income is easier (no dividend or loan issues)
Just because you have an ABN and wear a uniform doesn’t mean you need to jump into complex structures. Not sure what’s right for you? A good accountant in Windsor can walk you through it.
4. Confusing Contractors and Employees
This one’s big, and risky.
Many tradies hire “subbies” thinking they’re independent contractors because they have their own ABN. But the ATO doesn’t just look at that. They look at how that person works:
Are they using your tools?
Are they working only for you?
Do they follow your hours and instructions?
If the answer is yes, the ATO might say they’re actually an employee. And if that’s the case, you could be up for superannuation, workers comp, PAYG withholding, and back payments.
It’s a classic case of “you don’t know what you don’t know”, until it’s too late.
5. Not Putting Money Aside for Tax
If you’ve ever had a tax bill knock the wind out of you, you’re not alone. The ATO doesn’t care if you forgot to put money aside, and neither does your BAS due date.
Most tradies are too busy earning to remember to set aside:
Income tax
2% Medicare levy
10% GST (if over the $75K threshold)
Student loan repayments
Medicare Levy Surcharge (if applicable)
And when the bill hits, it’s straight into your savings or credit card.
Simple fix:
Open a separate account and chuck in 25–30% of every payment you get. It takes the guesswork and panic out of tax time.
6. Trusting a “Mate’s Rates” Accountant
We’re not here to throw shade, but there’s a big difference between an accountant who lodges your return and one who helps you run your business.
If your tax accountant never asks you about:
Whether you’re claiming the right things
If you’re set up under the right structure
How is your cash flow tracking
Your subbie arrangements
…then you’re probably missing key opportunities (or skating on thin ice).
It’s not just about getting a refund. It’s about making your business bulletproof.
At Bold Accounting, We Speak Tradie
We’re not just number-crunchers.
At Bold Accounting, we help Hawkesbury tradies take control of their books, avoid costly mistakes, and build a business that works for them, not the other way around.
Here’s how we help:
Contractor audits — so you don’t get stung by the ATO
Structure reviews — sole trader, company, trust? We’ll help you choose right
Deduction checklists — so you claim every cent you’re entitled to
Xero setup and support — we’ll get your books sorted properly
Tax planning — because no one likes surprise bills
Whether you’re a sparkie in Windsor, a landscaper in Richmond, or a plumber working all over Penrith, we’re here to make the financial side of business easier.
You’re Great on the Tools, We’re Great With the Books
Your time should be spent running jobs, quoting clients, and getting home at a decent hour, not stressing over spreadsheets or chasing your tail come BAS time.
The smartest tradies we work with aren’t the ones who do everything themselves. They’re the ones who know when to call in an expert.
Let’s take the stress out of your books and give you the support your business needs.
