Are You Guessing or Knowing Your Numbers?
3 Hidden Money Leaks Most Tradespeople Overlook
And How Smart Bookkeeping Can Stop the Bleeding
Running a trade business means juggling job sites, clients, crews, equipment—and somehow still finding time to chase payments. But what if you’re unknowingly bleeding money in places you’re not even tracking?
At AAG Wise Bookkeeping, we’ve seen it time and time again: contractors who are booked solid, working hard… but still wondering where the profit went.
Let’s uncover the three hidden money leaks that quietly eat into your bottom line—and how better bookkeeping can patch them up for good.
๐ง 1. Untracked Equipment Costs
You might be charging for materials and labor, but what about the real cost of running your gear?
Fuel is just one piece of the puzzle. The full cost includes:
- Depreciation (yes, your skid steer loses value every hour it runs)
- Maintenance & repairs
- Insurance on the asset
- Operator wages (if you’re not on payroll, that means your time)
The leak: Many tradespeople charge flat rates that don’t account for the full hourly cost of equipment. You might be charging $25/hour for something that costs you $45/hour to operate.
The fix: Track equipment hours and divide total monthly costs by usage. It’s a wake-up call that leads to smarter bidding.
๐ธ 2. Underestimated Overhead
Overhead isn’t just rent and utilities. It’s also:
- Your admin time
- Accounting software
- Tools and supplies that “don’t seem like much”
- Subcontractor coordination
- Phone bills, licensing, marketing, and more
The leak: You bid jobs based on visible labor and materials—but forget to build in the soft costs that keep your business running.
The fix: Start tracking all recurring monthly expenses in your books. Break them into categories like fixed vs. variable costs so you can factor them into your bids accurately.
๐งพ 3. Invoicing Delays & Payment Gaps
Cash flow isn’t just about collecting—it’s about how fast you collect.
The leak: Invoices sent late. Payments chased down. Work completed but not billed. A $10,000 job doesn’t help you if the money shows up 90 days later.
The fix: Set up an invoicing system that triggers automatically (like through QuickBooks Online). Send reminders. Accept online payments. And track accounts receivable like a hawk.
โ The Bottom Line
If your profit margins are thinner than your patience on a Friday afternoon, it’s time to stop guessing and start knowing your numbers.
With AAG Wise Bookkeeping, you get more than a bookkeeper—you get a partner who helps you run lean, bid smart, and grow strong.
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๐ Ready to plug the leaks and build your bottom line?
Let’s talk. Book your free consultation today: https://calendly.com/anna-aagwisebookkeeping
