Check out Sole APP here today and use the discount codes SOLEDIRECT (monthly) and ANNUALDIRECT (annual) to get the exclusive discount. Working with an accountant or bookkeeper can also provide you with valuable advice and guidance. They can help ensure your accounts are compliant with regulations and provide support sole trader accounting in the event of an HMRC investigation. To ensure that you comply with legal requirements, it is important to keep your records organised and easily accessible. You can use software to help you keep track of your records and ensure that you retain them for the required period. In addition to HMRC, other regulatory bodies may require you to retain your financial records for a certain period.
Keep accurate records, be aware of your rights, and pay tax on time
This doesn’t mean you can’t use Excel anymore, but you will need bridging software that will let you file VAT returns digitally from your spreadsheets. It also makes it easier to review assets = liabilities + equity your VAT returns before you submit them to make sure there aren’t any errors. And when it comes to getting paid for the products or services you’re selling, using an online payments provider such as GoCardless or Stripe can make life easier. You can register voluntarily even if you are below the threshold, and some sole traders decide to do this because it implies you’re a more established, trustworthy business. She warned of apps that are pared-down versions of bigger platforms which are generally used by those who are VAT-registered, i.e. those whose taxable turnover exceeds the £85,000 threshold.
Paying the correct taxes
Developed specifically as software for small businesses, Quickbooks is more than equipped to deal with any sole trader’s books. And the best news is that this is available for just £12 a month, giving you incredible value for money. ANNA Business Tools is probably the most simplified accounting software we’ve tried, but don’t mistake that to mean it’s lacking in features. FreeAgent is accounting software designed for both small businesses and freelancers.
Best Accounting Software For Sole Traders In The UK
For more information on how Sage uses and looks after your personal data and the data protection rights you have, please read our Privacy Policy. Choosing the right software can ensure your records are always up to date. However, accounting is one that you shouldn’t scrimp on as any inaccuracy or failure to register correct tax information can have repercussions for you personally. You can create also quotes and invoices, customised with your branding and full contact details, which can be emailed to customers in PDF format. Or you can spot someone who hasn’t paid their invoice on time and gently suggest that you can’t do anymore work until you’re all square.
- FreshBooks provides a strong overall package, including Making Tax Digital (MTD) VAT integration, but what we really like is its invoice and estimate creation tools.
- While most accounting software offers this, it’s been a key priority for FreshBooks for years, and this focus really shows.
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- Instant pay is also a great feature so you don’t have to chase up invoices and can get paid straight away.
- While it is not necessary to hire an accountant immediately, it is recommended to seek professional help if you are not familiar with bookkeeping or need assistance with tax compliance.
- This involves keeping accurate records of your income and expenses, reporting your earnings to HMRC, and paying any tax that you owe.
Forecasting Cash Flow and Future Tax Liabilities
Additionally, effective bookkeeping can help you spot trends in your finances, allowing you to plan for future growth. It’s important to stay compliant using digital tools to categorise and forward reports automatically. There are plenty of ready-to-go sole trader software packages available to choose from that tick all of the boxes above. If you’re in any doubt, talk to a professional bookkeeper or accountant for their recommendations on the best Accounting for Churches software for your business.
About Small Business
- Keeping accurate records of your VAT transactions is essential for complying with VAT regulations.
- Designed with the unique needs of sole traders in mind, it offers a suite of features that streamline bookkeeping tasks.
- Most accounting experts recommend that, for sole traders, bookkeeping is done regularly (either weekly or monthly) to ensure you don’t fall behind to the point it becomes overwhelming.
- These solutions are easy to use, affordable, and perfect for busy sole traders juggling multiple roles.
With clean books, streamlined financials and professional advice when needed, you can tackle self-assessment submissions confidently and efficiently. Of course, you can also register for VAT voluntarily, even if your turnover is less than £90,000.