What is a sole trader?

What is a sole trader?

A sole trader is basically an individual who manages a business in their own name. Sole traders are personally liable for all the decisions the business makes and are held responsible for any gains or losses in the business. Sole traders generally operate on a small scale and this is an easy option for those who don't want the hassle of being a company director.

Sole Trader Bookkeeping

For HMRC tax purposes, sole traders will have to maintain records of financial transactions and report the company's profits and losses. Bookkeeping is the formal title given to an effective method for maintaining records of a business. Sole trader bookkeeping will help you to pay the correct taxes because you have an accurate record of financial transactions. In order to pay tax on or before the deadline, having an effective bookkeeping solution in place is the best way to stay on top of things. A sole trader bookkeeper in London can easily help you manage your obligations.

Why is bookkeeping needed?

Simple, to accurately record financial transactions and calculate your tax payable. You can find a professional sole trader bookkeeper in London to help you. If you struggle to save money to pay your taxes as a sole trader, then bookkeeping will help. Using market-leading software, such as Sage Cloud or Xero, you can automate several tasks and estimate the tax payable in advance.

Also read: Do you need a limited company accountant In London?

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Why is an accountant required for bookkeeping for small businesses?

Bookkeeping can quickly become mundane, boring and complicated. It is tricky work that not everyone has the appetite to do. As a small business owner, it is important for you to think outside the box for the development of your business. Wasting time on bookkeeping isn't the best us of your limited time. Managing taxes and accounts can be a stressful and a time-consuming task. Outsource the stress and think about hiring an accountant. You can find a small business accountant in London to manage your account.

Role of small business accountants

Management of records - Accountants are best at this job. They are professionally trained to record financial records for the smooth functioning of a business. You can find small business accountants in London to help you with this work. They are trained to keep a record of total income, profit and loss reports, money transactions, etc.

Business advice -It is very important for your business to grow. Accountants are good at giving helpful business advice for the growth and development of a small business. They can help with strategies for cost control and boosting sales to increase profits. They can also give advice about taxes and saving money for the future. You can find all these skills in a small business accountant in London.

Avoiding fines and penalties - A small business accountant ensures filings are accurate and submitted on time. Good quality financial records are the key to achieving this goal. Accountants keep a check on the activities of a small business and flag issues at an early stage (such as registering for VAT or advising on the tax liabilities of providing benefits to staff). You can find a small business accountant in London to avoid any problematic situation.

Lancing Cotswold Accountants and Tax Advisers are highly qualified and experienced. We put our clients first and focus on delivering a unique personable service. We are only a phone call away to making your life easier.

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You can also read: 6 Reasons why a landlord should hire a property accountant in London