Working for yourself as a tradesman means that you need to learn to manage your own business finances, and your personal budget. Whether you're in the early days of your business or have been working for yourself for years, money-saving within your business is always a good idea to help you maximize your profits.
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Care For Your Equipment
Your tools are your trade, and good quality tools are not cheap. Having to replace a tool is not ideal, so try and prolong the life of your equipment as much as you can. Make sure that you properly clean and store all your tools at the end of a job. Always use them correctly and don't force them to do what they weren't designed for.
If you use a work van, you need to care for that too. You can save on fuel with the way you drive. Make sure you keep your van's service history up to date. Don't leave tools in the van overnight, and keep them secure so they are at less risk of being stolen.
Make sure you get insurance from a specialist like rhinotradeinsurance.com, so you can claim if you do need to replace something.
Claim Back Expenses
If you're self-employed, you'll be paying taxes by filing your own tax return. Make sure that when you file that you know what expenses you can claim back as a business expense. Keep a detailed record of everything your business earns and spends to make filing your returns that bit easier. As a general rule of thumb, if you spent the money for a business reason, you can claim it back. For example, if you bought new tools or spent money on advertising, these would be allowable expenses.
If you find sorting out your taxes a nightmare, it can be worth hiring an accountant to help you. While you will have to pay for this help, it will mean that you know your accounts are correct, so you won't miss out on claimable expenses or get hit with fines for accidentally underpaying. It will also free up more time for you to actually work and earn money if you're not stuck struggling with your receipts for hours.
Audit Your Outgoings
Take a hard look at your bank account and pay attention to everything that you're spending every month. Are you able to cut back on any of your regular outgoings, or are you paying for something you don't need? For example, if you're spending a set amount every month on Facebook ads that aren't delivering results, why are you still doing it? Are you paying for a trade membership you've never used?
Do the same for your personal expenses too. Can you save money by taking a packed lunch to work instead of buying it while you're out? Could you change your mobile phone contact to a cheaper deal? Find areas where you can cut back, and you can make some substantial savings.
