Ask most tradies what they like least about running their own business and bookkeeping comes near the top. It's rarely hard. The trouble is that it piles up: a glovebox full of receipts, invoices sent a fortnight late, and a bank statement nobody has looked at since the last BAS.
This guide sets out a simple bookkeeping routine for sole traders and small trade businesses, the records the ATO expects you to keep, and the rules on tax invoices and contractor payments that catch trades out. It's correct as at November 2026 and links to the ATO for each rule.
What bookkeeping actually covers
For a small trade business, bookkeeping means keeping an accurate record of:
- money in: quotes, invoices and the payments you receive,
- money out: materials, fuel, tools, subcontractors, insurance, phone and other costs,
- GST: what you've charged and what you can claim back, if you're registered,
- wages and super, if you have employees, and
- the paperwork behind each item, such as receipts, tax invoices and contracts.
Good books let you lodge your BAS and tax return without stress, and tell you which jobs actually make money.
The records you must keep
The ATO's record-keeping rules say you're legally required to keep records of all transactions relating to your tax, super and registration affairs, from starting the business through to selling or closing it. Its five rules, in short:
- Keep all records relevant to your tax and super affairs, from starting the business to closing it.
- Where an expense is partly business and partly personal, such as your phone or vehicle, keep clear records showing the business portion.
- Records must not be altered, and must be stored so they're protected from being changed or damaged.
- You need to be able to reconstruct your original data if your record-keeping system changes.
- Keep most records for 5 years.
A record generally needs the date, the amount, a description, the GST information and the purpose of the transaction. A photo or scan of a receipt can do the job, as long as it's clear and complete.
Key record-keeping rules and dates
Most records must be kept for 5 years, and a few dates and dollar limits come up again and again.
| Rule | What the ATO says |
|---|---|
| How long to keep records | Most records for 5 years, generally from when you prepared or obtained the record or completed the transaction, whichever is later |
| What a record needs | Generally the date, amount, description, GST information, purpose and, where relevant, the relationship between the parties |
| Tax invoice on request | Within 28 days if a customer asks, unless the sale is $82.50 (including GST) or less |
| Tax invoices of $1,000 or more | Must also show the buyer's identity or ABN |
| Claiming GST credits | You need a tax invoice, except for purchases of $82.50 or less, and you have 4 years to claim |
| TPAR for contractor payments | Businesses mainly in building and construction (50% or more of income or activity) that pay contractors for building and construction services must lodge by 28 August each year |
Tax invoices: what yours must show
If you're registered for GST, the ATO's tax invoice rules matter twice: for the invoices you send and the ones you receive.
For sales under $1,000, a tax invoice must make clear seven details:
- that it's intended to be a tax invoice,
- the seller's identity,
- the seller's ABN,
- the date it was issued,
- a brief description of what was sold, including the quantity (if applicable) and the price,
- the GST amount (or, if GST is exactly one-eleventh of the total, a statement that the total price includes GST), and
- the extent to which each item is a taxable sale.
For sales of $1,000 or more, the invoice must also show the buyer's identity or ABN. If a customer asks for a tax invoice, you must provide it within 28 days, unless the sale is $82.50 (including GST) or less. Invoices can be emailed as a PDF or sent digitally, as long as they contain all the required information.
On the other side, you generally need a valid tax invoice from your supplier before you can claim a GST credit, except for purchases of $82.50 or less. So the receipt from the hardware store matters.
Tradie Business invoices include your business details and ABN, work out GST, and are headed "Tax invoice" when you're registered for GST and your ABN is in Settings.
A weekly routine that works
Bookkeeping is easiest in small pieces. This is the routine we suggest:
A weekly bookkeeping routine for a small trade business Illustrative
The routine this article suggests, from the job site to the books.
- On the dayPhotograph receipts and log costs against the job.
- Invoice fastSend the invoice when the job is done, not at the end of the month.
- Each weekMatch payments to invoices and chase anything overdue.
- Each weekCode the bank transactions: business or personal, GST or not.
- Each quarterCheck the totals, then lodge and pay the BAS.
On the day
Photograph receipts as soon as you get them and log the cost against the job. Tradie Business lets you record job costs for materials, labour, subcontractors and other items, and attach receipt photos to them, so the paper can go in the bin once you've checked the photo is clear. If you're keeping the paper too, a shoebox per quarter beats the glovebox.
Invoice when the job is finished
The sooner the invoice goes out, the sooner you're paid. Send it from your phone before you leave the site if you can. Tradie Business tracks each invoice as sent, part paid, paid or overdue, and can send overdue invoice reminders if you switch them on.
Each week
Set aside half an hour on the same day each week:
- record payments against invoices, and follow up anything overdue,
- go through your business bank transactions and make sure each one has a receipt or invoice,
- mark anything personal as personal, and
- approve the week's timesheets if you have a crew, so labour costs land on the right jobs.
Each quarter
Check your totals, put aside the GST and tax, and lodge your BAS. Our guide to BAS for sole traders covers the due dates and what goes on it.
Separate your business money
A separate bank account for the business makes everything simpler: fewer transactions to sort, a clearer picture of profit, and an easy place to keep GST and tax money. If you use a company structure, the company's money must be kept separate from yours. See sole trader vs company.
Paying subcontractors: the TPAR
If your business is mainly in building and construction and you pay contractors or subcontractors, you probably need to lodge a Taxable payments annual report (TPAR). According to the ATO's page on TPAR for building and construction, you're treated as primarily in building and construction if, in the current financial year, 50% or more of your business income or activity comes from those services, or 50% or more of your income did in the year before.
If that's you, you must lodge a TPAR by 28 August each year, reporting what you paid each contractor for building and construction services. Payments to employees aren't included. Keep each subcontractor's ABN, name, address and the totals you paid, so the report is quick to prepare.
Paying subcontractors can also bring super obligations if they're paid mainly for their labour. See our guide to super for sole traders.
Software, spreadsheets or a bookkeeper?
There's no rule that you must use accounting software. The ATO's requirement is that your records are complete, accurate, protected from changes and kept for 5 years. In practice, most trade businesses use:
- an app for quotes, jobs and invoices, like Tradie Business,
- accounting software for the bank feed, BAS and reports, and
- a registered BAS agent or tax agent to check the books or lodge for them.
Xero and MYOB sync in Tradie Business is coming soon. Until it's switched on, keep your invoices and payments in Tradie Business and enter or import them into your accounting software. See all the features, the pricing, and how it works for electricians, plumbers and painters.
If you'd rather hand the books over, check that your bookkeeper is a registered BAS agent with the Tax Practitioners Board before they prepare or lodge a BAS for you.
Bookkeeping checklist
- Open a separate business bank account.
- Photograph every receipt on the day and log it against the job.
- Send tax invoices that meet the ATO's rules as soon as the job is done.
- Spend half an hour a week matching payments and bank transactions.
- Keep records for 5 years, protected from changes.
- Work out whether you need to lodge a TPAR by 28 August.
- Lodge your BAS on time each quarter.
