Why is cash flow harder for bricklayers who work under builders?

Bricklayers subcontracting to builders are usually paid on the builder's payment schedule, often 30-45 days after a stage is completed and signed off, not on delivery of materials or completion of the physical work. This lag between buying bricks, sand and cement upfront and receiving payment weeks later is the single biggest cash flow pressure point for bricklaying businesses, and needs to be planned for with a cash flow forecast, not just discovered when the bank account runs low.

Should brick and mortar costs be tracked by job in Xero?

Yes. Materials cost, bricks, sand, cement, reinforcement, scaffolding hire, varies significantly between jobs depending on brick type and wastage, and tracking it against the specific job using Xero job or project codes is the only way to see whether a job's margin matched the quote. Without this, materials cost sits in one general expense account and margin erosion on individual jobs goes unnoticed until it's a pattern across the whole year.

Do bricklayers need to lodge a TPAR?

Yes, bricklaying is a building and construction service, so any bricklaying business paying subcontractors, additional bricklayers, labourers, must lodge a Taxable Payments Annual Report (TPAR) by 28 August each year reporting total payments to each contractor.

How should retention money be tracked?

Retention, typically 5% held back by the builder until defects liability period ends, should be tracked as a separate receivable in Xero rather than written off the books once the main payment is received. Retention amounts due later, sometimes 12 months after completion, are easy to forget and go unclaimed if there's no system tracking what's owed and when it becomes due.

What KPIs should a bricklaying business track monthly?

Revenue per job by brick type and complexity, materials cost as a percentage of quoted revenue, average debtor days from builders, and outstanding retention receivable are the core metrics for understanding true profitability beyond a simple bank balance.

Bookkeeping for Bricklayers in Melbourne

Published August 2026By True Tally Bookkeeping8 min read

The Cash Flow Gap: Materials Now, Payment in 30-45 Days

Most bricklaying businesses work as subcontractors to builders, paid on the builder's schedule, often 30-45 days after a stage is completed and signed off. Bricks, sand, cement, reinforcement and scaffolding hire are bought upfront, well before that payment lands. This gap between outlay and payment is the single biggest cash flow pressure most bricklaying businesses face, and it needs to be planned for with a rolling cash flow forecast, not discovered as a surprise when the bank account runs low mid-job.

Materials Cost Tracking Against Quotes

Materials cost varies significantly job to job depending on brick type, face brick versus common, and wastage rates on cuts and corners. Tracking materials against the specific job using Xero job or project codes is the only reliable way to see whether a job's actual margin matched what was quoted. Without job-level tracking, materials cost sits in one general expense account, and a pattern of underquoting or wastage across several jobs stays invisible until it shows up as a disappointing year-end result with no clear cause.

Cost item	Typical timing	Bookkeeping approach
Bricks, sand, cement, reo	Paid upfront / on account	Coded to job, compared to quote
Scaffolding hire	Ongoing during job	Coded to job, watch duration overruns
Builder progress payment	30-45 days after stage sign-off	Cash flow forecast, not assumed on invoice date
Retention (typically 5%)	Released after defects liability period	Tracked as separate receivable

Watch: Cash Flow & Materials Bookkeeping for Melbourne Bricklayers

Read the video transcript

If you're a bricklayer in Melbourne working mainly for builders, the cash flow squeeze you're feeling has a specific cause, you're buying bricks, sand and cement upfront, but the builder's payment schedule usually means you're not paid until 30 to 45 days after a stage is signed off.

That gap is the single biggest cash flow issue for bricklaying businesses, and the fix is a rolling cash flow forecast, not hoping the timing works out.

On materials, code them to the specific job in Xero and compare against your quote. Face brick versus common brick, and wastage on cuts and corners, both move your margin more than most bricklayers realise until they're tracking it job by job.

If you use other bricklayers or labourers as subcontractors, you need to lodge a TPAR by 28 August each year. And don't forget retention, that 5% builders hold back until the defects period ends, track it as a separate receivable so it doesn't quietly go unclaimed twelve months later.

If you're a Melbourne bricklaying business and want your cash flow forecast and job costing sorted properly, book a free 20-minute call at calendly.com/truetally, or call 0468 159 950. No silly questions, we've heard them all.

TPAR for Bricklaying Subcontractors

Bricklaying is a building and construction service, so any bricklaying business paying other bricklayers or labourers as subcontractors must lodge a Taxable Payments Annual Report (TPAR) by 28 August each year, reporting total payments made to each contractor for the financial year.

Retention Money: Track It, Don't Forget It

Builders typically hold back around 5% of the contract value as retention until the defects liability period, often 12 months, ends. This money is real and owed, but it's easy to lose track of once the main progress payment has been received and the job feels finished. Tracking retention as a separate receivable in Xero, with the expected release date, prevents it from being forgotten entirely.

The gap between buying materials and getting paid is where most bricklaying businesses lose control of cash

We build Xero cash flow forecasts and job costing for bricklaying businesses so you can see the gap coming, not just feel it.

Book a Free 20-Minute Call

KPIs Every Bricklaying Business Should Track Monthly

✓ Revenue per job by brick type and complexity
✓ Materials cost as % of quoted revenue
✓ Average debtor days from builders
✓ Outstanding retention receivable

Compliance Calendar for Melbourne Bricklaying Businesses

TPAR is due 28 August annually for businesses using subcontractors. BAS is lodged quarterly, 28 days after quarter end, with GST at 10%. Superannuation guarantee at 12% applies to employed staff, paid quarterly. Contractor versus employee classification should be reviewed annually for any regular labourers.

True Tally Bookkeeping, Melbourne

We work with bricklaying and building trades across Melbourne and Victoria on cash flow forecasting, job costing and TPAR compliance.