Episode 4 – Why Cash in the Bank Matters More Than Profit on Paper

Profit is theory. Cash is real.

Episode Summary

Your Profit & Loss says you made money.

But your bank account says otherwise.

In this episode, Amanda breaks down the difference between profit and cash flow — and why cash in the bank is what actually keeps your trade business stable.

Because you can be “profitable” on paper and still feel stressed every week trying to make payroll.

And that’s a cash flow problem.

In This Episode, We Cover:

✔ Why profit doesn’t automatically mean financial security

✔ The common end-of-month trap tradies fall into

✔ Why cash flow issues sink good businesses

✔ The stress cycle that starts when cash gets tight

✔ What healthy cash flow actually looks like

✔ Simple bank account structures that protect your business

✔ A small action you can take this week to regain control

The Common Scenario

Your P&L shows a $12k profit.

But your bank balance is sitting at $1,800.

Fuel bills are due.

Wages are coming up.

Clients haven’t paid yet.

This is where many tradies feel like they’re working flat out but never getting ahead.

Why It Matters

You can’t pay suppliers with a profit report.

You can’t pay wages with accounts receivable.

Cash in your bank account is what:

• Pays the bills
• Reduces stress
• Keeps growth moving
• Gives you breathing room

Without it, even a “profitable” business feels chaotic.

What Good Looks Like

Healthy cash flow means:

• You know exactly how much cash you need each week
• You’ve got separate bank accounts (GST, wages, tax, etc.)
• You set aside a percentage from every payment
• You have visibility over what’s coming in and going out
• You’ve built a buffer to handle slow payers or surprises

It’s not complicated.

It’s just consistent.

This Week’s Action Step

Open a second (or third) bank account.

Name it:

• “Bills”
• “GST”
• “Don’t Touch”

Next time money comes in, transfer 30% immediately.

And if you’ve already got a tax account sitting there empty — start using it.

Small habit. Big difference.

The Bottom Line

Being profitable doesn’t mean you’re safe.

Cash in the bank is what gives you options, lowers stress, and lets you step away from the business without panic.

If cash flow feels messy or confusing, this is exactly what we help tradies sort at Virtual Coastie.

You can absolutely do it yourself.

Or you can get it set up properly and move on.

🔧 Learn more at: www.virtualcoastie.co.nz

🎧 Follow Hey Tradies! so you don’t miss the next episode.

Catch you next time.

Episode 3 – What Good Accounts Receivable Actually Looks Like

Less chasing. More cash in the bank.

Episode Summary

Chasing unpaid invoices is exhausting.

If you’re checking your bank account every morning, wondering when that invoice will land — or having awkward “just following up…” conversations with clients — this episode is for you.

In this one, Amanda breaks down what good accounts receivable actually looks like in a trade business. No theory. No finance jargon. Just practical systems that reduce stress and improve cash flow.

Because late payments aren’t just annoying — they hurt your momentum, your growth, and your sleep.

In This Episode, We Cover:

✔ Why most tradies don’t have a proper accounts receivable system

✔ How poor receivables management damages cash flow

✔ Why sending an invoice isn’t the same as getting paid

✔ What a healthy accounts receivable system looks like

✔ The importance of reviewing your aged receivables weekly

✔ What “average debtor days” means (and why under 14 days is the goal)

✔ A simple step you can take this week to clean things up

What Good Accounts Receivable Looks Like

A strong system includes:

• Invoices sent immediately (not “when I get time”)
• Clear payment terms and due dates
• Clients set up with expectations from day one
• Automatic reminders before and after the due date
• Weekly follow-ups on overdue accounts
• Reviewing your aged receivables report weekly
• Tracking your average debtor days (aim for under 14)

No chasing chaos. Just consistent systems.

This Week’s Action Step

Log into Xero.

Pull up your Aged Receivables Report.

Highlight every client over 14 days.

That’s your follow-up list this week.

Then:

• Set up automatic reminders (if you haven’t already)
• Spend 20 minutes following up — phone or email

Not to nag. Just to move the money.

The Bottom Line

Cash flow drives everything.

If your accounts receivable system is weak, the rest of the business feels harder than it needs to.

And if you’re flat out and never get around to this stuff — this is exactly what we help tradies with at Virtual Coastie.

You can absolutely do it yourself.

Or you can get help and free up your headspace.

Totally up to you.

🔧 Learn more at: www.virtualcoastie.co.nz

🎧 Follow Hey Tradies! so you don’t miss the next episode.

Catch you next time.

Episode 2 – The Bare Minimum Setup Every Tradie Needs in Xero

Keep it simple. Keep it functional. Stop flying blind.

Episode Summary

If you’re using Xero but feel like you’re barely scratching the surface, this episode is for you.

In this one, Amanda walks through the bare minimum setup every tradie needs in Xero to keep their books clean, their numbers clear, and their accountant happy.

No advanced accounting talk. No overcomplicated systems. Just the essentials that make your business easier to run.

Because when Xero isn’t set up properly, it costs you time, money, and unnecessary stress.

In This Episode, We Cover:

✔ Why a messy Xero setup leads to expensive mistakes

✔ The non-negotiables every tradie must have set up from day one

✔ Bank feeds and why manual entry is a waste of time

✔ Cleaning up your chart of accounts

✔ When to use tracking categories (and when not to overcomplicate it)

✔ GST settings that actually match your business

✔ Invoice branding and payment reminders

✔ Common Xero mistakes tradies make

✔ What “good” actually looks like in a simple, functional setup

The Non-Negotiables Amanda Talks About

• Connected bank feeds (all business accounts + credit cards)
• A clean, relevant chart of accounts
• Clear income and cost categories
• Proper GST settings
• Branded invoice templates with clear payment terms
• Smart user permissions
• Automatic reminders for unpaid invoices

The Goal

When Xero is set up properly, it should:

• Take less than 15 minutes a week to maintain
• Show you a clear monthly profit and loss
• Make invoicing easy and automated
• Reduce stress at GST and end of financial year
• Save you money on accountant fees

It doesn’t need to be fancy.

It just needs to work.

This Week’s Action Step

Log into Xero and check:

1. Are your bank feeds connected?
2. Is your invoice template branded and clear?

If not — fix it or flick it to your bookkeeper.

And if you’re sitting there thinking, “I don’t even know what half this means” — that’s exactly what Virtual Coastie helps tradies with every day.

Need Help?

If your Xero setup is giving you a headache and you want it sorted properly once and for all, that’s literally what we do.

We make it tradie-proof, clean it up, and hand it back to you in a way that actually makes sense.

🔧 Learn more at: www.virtualcoastie.co.nz

Catch you in the next episode of Hey Tradies! 👊