Had a call from a lady asking about Dubbo Bookkeeping Services. Her husband is a sole trader in the construction industry, with an ABN.
Does he need a Bookkeeper? Good question. He’s got an ABN, and he’s only got one client. In effect he’s a subcontractor. He’s providing labour for a construction company. He doesn’t provide any materials – he simply shows up for work on the job site.
We are not registered tax agents, so we cannot give advice in such matters. We are bookkeepers servicing clients in the Dubbo, Wellington and Narromine areas.
We cannot give advice on whether this subcontractor can claim fuel for going to his different jobs. He needs to speak to his accountant or tax agent.
It would seem that he really has no expenses, no suppliers, and only one customer. The Australian Taxation Office have a checklist on their website to determine whether he’s a sub-contractor or an employee.
If he’s only got one client, and only providing labour, then chances are that he’s entitled to Superannuation.
Going back to the original question: As a tradesman in these circumstances, does he need a bookkeeper to do his book keeping?
Maybe the best thing he can do is to get himself a cash book from the local newsagent and just write down his expenses each month. At the end of the year we can then collate his records and produce the necessary reports for him to take to his tax agent.
As his business grows, then he may need some bookkeeping. It’s not really worth his while (or ours) to be outsourcing his bookkeeping under his present circumstances.