17 Mar Operating as a sole trader? Key tips for handling your accounts
While there are a few different ways to structure any UK business, setting up as a sole trader is still very popular.
This is naturally a great choice for smaller ventures who do not expect to generate large turnover figures. It is also suitable for those who want to keep their accounts and tax responsibilities simpler. Even as a sole trader though, you have to keep an eye on your business finances. But what are the best tips to help with sole trader accounting?
Think about outsourcing
Many people wrongly think that outsourcing key business tasks is only for larger businesses. This is not always true though! Sole traders can still reap the benefits which outsourcing brings in terms of saving valuable working time and reducing their workload. Although sole traders can worry about the expense of outsourcing, it represents superb value for money in the long-term. This is because it gives you more time to spend on growth, core work and making money.
It can sometimes be easy to forget about keeping your accounts up to date. As this kind of business does not usually involve multiple staff, reams of invoices and huge piles of expense receipts, many will neglect to keep their accounts well organised. This is a mistake though, as it makes it much harder to access the information needed to review your progress or plan strategically for the future. It also makes it a real pain to pull the info you need together for tax returns.
Plan for emergencies
If there is one thing that events like the COVID-19 pandemic teach us, it is that you should always plan for unexpected emergencies. This is especially true for sole traders who might not have masses of spare capital to fall back on. With this in mind, a good accounting tip is to save some of your trading profits in an emergency fund each month. Over time, this will build up to help you through any tough times in business.
Professional sole trader accounting in Manchester
In terms of outsourcing, business accounts are one of the most common things sole traders looking for help with. This is perfectly understandable, as most sole traders are not experts in accounts and do not have the time to look after them. Here at SQK Accountancy, we provide sole traders in Manchester with professional advice around their business finances. Get in touch at 0161 706 0444 today for a chat.