09 Aug 4 tips for sole traders that can help their business
Being a sole trader has a range of benefits – not only do you have a lot of freedom when it comes to the type of work that you accept, but you can also work on a more flexible schedule.
Saying that though, there are certain expenses, costs, and taxes that a sole trader has to stay on top of. Here, we’ve put together 5 tips to help sole traders boost their business.
1. VAT registration
As a sole trader, you need to register for VAT even if your turnover is more than the VAT threshold. The majority of sole traders choose to voluntarily register for VAT. The reason? You can get back the VAT that you’ve been charged by other businesses and it can help make your business look bigger.
2. Seek support
It’s very unlikely that you’ll be able to complete all your day-to-day workflow as a sole trader. You might not have the skills to do so, or simply don’t have the time to get everything done. For this reason, don’t hesitate to delegate certain tasks. For example, you can outsource your accounts, website, and marketing. Not only will this allow you to get on with your day-to-day job, but it can also save you a lot of hassle too.
3. Set up a business bank account
While you may be the sole worker, that doesn’t mean that you should keep all the money in your personal account. Not only does this help with money management, but it can also make it easier for you to pay your wage into your personal account.
4. Set up a contingency fund
As a sole trader, you may have to take time off work due to an illness, bereavement, or any number of reasons. Having a contingency fund will help you keep your finances afloat and will garner trust in anyone who works for you as they’ll know that you will support them throughout any personal issues.
If you’re a sole trader in Manchester and need some help with your sole trader accounting, don’t hesitate to give our friendly and expert team a call on 0161 706 0444.