The Trade’s Guide to Knowing Your Numbers: Why Numbers Matter for Success

Just Ask Tash
Aug 13
2 min read

Think you’re making money? Your bank balance might be lying to you. A lot of tradies and small business owners run their business on gut feel. Money’s in the account? Great. Money’s tight? Work harder. But here’s the thing — your bank balance is only part of the story. If you really want to grow and protect your business, you need to understand why numbers matter.

Why Numbers Matter

Your business can look busy but still be bleeding profit. If you don’t know exactly what’s coming in, going out, and where it’s going, you’re driving blind. Knowing your numbers gives you the power to make smart calls, not just lucky ones and that’s exactly why numbers matter for every small business owner.

The Big 3 You Need to Watch

Profit Margin: The money you keep after paying for materials, labour, and overheads. This is your real profit — and if it’s not healthy, you’ve got a problem.
Overheads: Rent, insurance, software, fuel. The boring stuff that slowly eats into your hard work if you’re not keeping an eye on it.
Cash Flow: How fast money comes in compared to how fast it goes out. Run out of cash, and even a profitable business can grind to a halt.

Simple Tools to Track It All

You don’t need a finance degree, just the right tools.

Accounting software like Xero, MYOB, QuickBooks to track income and expenses.
Job management systems like ServiceM8, Tradify or NextMinute to quote, invoice, and track time.