Posted on September 19th, 2025

Running a trades business—whether you're a plumber, electrician, HVAC tech, or general contractor—takes more than just skill on the job. It takes business savvy, financial discipline, and a solid plan. At Hylton Bookkeeping, we work with tradespeople every day, and we’ve seen some common mistakes that can hold great businesses back.

Here are some of the biggest mistakes tradespeople make—and how to avoid them.

1. Not Separating Business and Personal Finances

The mistake: Mixing personal and business expenses in the same bank account.

Why it matters: It makes bookkeeping a nightmare, complicates tax time, and can even put your personal assets at risk.

The fix: Open a dedicated business bank account and use it exclusively for business income and expenses. It’s a simple move that makes a huge difference.

2. Underpricing Jobs

The mistake: Quoting too low just to win the job.

Why it matters: You might win the job, but you’ll lose money—or barely break even. That’s not sustainable.

The fix: Know your numbers. Factor in labor, materials, overhead, and profit margin. Don’t be afraid to charge what you’re worth.

3. Neglecting Bookkeeping Until Tax Time

The mistake: Waiting until the end of the year (or worse, tax season) to look at your books.

Why it matters: You miss out on insights that could help you grow, and you risk penalties or missed deductions.

The fix: Stay on top of your books monthly—or better yet, hire a bookkeeper who understands the trades.

4. Not Tracking Job Costs Properly

The mistake: Losing track of how much each job actually costs you.

Why it matters: Without job costing, you don’t know which jobs are profitable and which ones are draining your business.

The fix: Use software or a system to track labor, materials, and time per job. This helps you quote better and grow smarter.

5. Trying to Do Everything Alone

The mistake: Wearing every hat—sales, admin, accounting, marketing—because you think you have to.

Why it matters: You burn out, and your business suffers.

The fix: Delegate what you can. Focus on what you do best and bring in pros (like a bookkeeper!) to handle the rest.

Final Thoughts

You’re great at your trade—but running a business is a whole different skill set. The good news? You don’t have to do it alone. At Hylton Bookkeeping, we specialize in helping tradespeople like you stay organized, profitable, and stress-free.

Want to talk about how we can help? Let’s connect.