19 Jan 3 ways to simplify your bookkeeping as a sole trader
Bookkeeping and accountancy are dirty words to a lot of sole traders. You’re already putting a huge strain on your time and effort to keep your business afloat without having to worry about managing your cash flow. Though bookkeeping may seem daunting when you’re self-employed, keeping accurate records is essential for any business. Here’s how to make your bookkeeping easier moving forward…
Make updating your accounts a habit
A lot of sole traders, possibly including yourself, let themselves slip into the bad habit of only touching their books in the run-up to their tax return deadline. If you don’t break this habit, then the end of the financial year is always going to be a source of stress for you. There’ll be more late nights as you rummage through statements and receipts, trying to remember your spending habits from 11 months ago. This can also cause you to miss out on large deductible expenses. Get into the habit of updating your books on a weekly or monthly basis.
Get clued-up on the business expenses you can claim
We’d all like a smaller tax bill, but many sole traders simply don’t have the know-how to deduct all the expenses they’re eligible for. The rules surrounding expenses can be fairly complicated, so it may be a good idea to hire an accountant to guide you through them. Still, over time, it will pay off to get clued-up on these yourself. The HMRC website has a full list of allowable business expenses for sole traders. Set some time aside to read through these, and make notes on the expenses that are applicable to you.
Book yourself in for an HMRC workshop
A lot of small business owners aren’t aware of this, but the HMRC runs regular workshops to help sole traders and other entrepreneurs with their accounting. This is something you should consider if you have just begun trading or find keeping on top of your bookkeeping testing. These programmes are usually run in small venues like libraries and community centres around the UK, and with a little research, you should be able to find one near you and reap all the valuable insight it has to offer.
If bookkeeping is a constant source of stress, why not speak to us at SQK Accountancy about taking it off your hands? It will free up plenty of time for you to put back into making your business a success.