Accountants for sole traders
With the progression of technology and online connectivity you no longer have to seek accounting services for sole traders close to where you live or do your business.
In fact it could be detrimental to you as traditional accountants tend to charge more because they’re less efficient.
These days there are plenty of online accountants for sole traders who offer a simple monthly subscription which usually covers all the tax and bookkeeping needs of a sole trader.
Sole trader bookkeeping
Once again technology makes keeping track of your incomings and outgoings a breeze. No more shoeboxes filled with receipts.
As a sole trader you should set up a dedicated sole trader business account which you can then connect with your accountants’ bookkeeping software.
All transactions are automatically shared from your bank account to your online bookkeeping account, saving you the time to input any items manually. It’s still good to keep the receipts or you can upload them to your bookkeeping account.
From time to time you’ll just need to allocate your expenses, explain any other transactions and your accountant will do the rest.
Sole trader accountant cost
The cost can vary depending on your approach. You can do your own bookkeeping and only engage an accountant to do your self-assessment or you can sign up for a regular service and have someone else to take care of your tax affairs.
Traditional accountants will usually expect you to do your own bookkeeping which they’ll check at the time you engage them to prepare your self assessment. Depending on the scope of your business, the cost can be still a few hundred pounds plus VAT.
Online accounting services for sole traders start at little as £45 a month and come with bookkeeping software, unlimited advice and all tax services included. While it may be a little bit more expensive, you’re likely to save a lot of time and be on top of your balance sheet at all times.
Can I do my own accounts as a sole trader?
You absolutely can. There is no legal requirement for sole traders to have an account.
However, you are likely to miss something unless you are continuously self educating yourself on tax. Every year the UK government tweaks tax rules and regulations and more often than not these have some impact on sole traders.
Unless you’re an expert on sole trader accountancy matters, you might find that your approach to save has in fact cost you.
Get the right insurance
Sole trader accountancy firms are good at keeping an eye on changes in legislation and tax rules so that you don’t fall short of your obligations. They also often include complimentary services such as sole trader business insurance recommendations, access to dedicated telephone helplines providing qualified advice on legal and other matters.
