Simple Bookkeeping for Sole Traders
Updated: Jun 28, 2021
As a business owner you need to know your numbers. I’m not talking money in bank and sales, I’m talking about profitability, cash flow, costs, and other useful financial information.
Yes, you can run your business in complete oblivion of all the above, and hand over a box of paper to your accountant at the end of the year…. but if you do that, you don’t have any idea about whether you make a profit or have spare cash in the bank and how will you grow and make more money without knowledge?
Simple bookkeeping requires 3 things to get started
A good bookkeeper will ask for help with a couple of things, but this is only to keep your costs down and to get you ready for HMRC’s future plans.
Use a software system to produce your invoices, take pictures of receipts and supplier invoices, and integrate your bank into the software.
It takes some time to set up the software, but that initial time spent pays rewards when it comes to the cost of your bookkeeping and getting you ready for the future.
If you have a mobile phone, you can use that to run your business on the “road”. Do quotes, raise invoices, take card payments, and capture receipts. How stress free does that sound?
A good bookkeeper will help with the set up, and advise on using the software, and do training if needed.
What you get back is a set of numbers, in a report format that a good bookkeeper will explain the results to you, so you know what they mean to your business.
This report is available each month and as you go through the year, you will build up a good picture of how your business is doing.
At year end, your accounts are done. No last minute rush!
With this type of information, you can plan for your future.
Do you take on an assistant?
Can you afford a new van?
What jobs are more profitable, and which aren’t worth doing.
You have choices which are easier to make with all the information from monthly financial reporting.
So, move over box of paperwork, go digital.
In 2023 ITSA (income tax self-assessment) filing online 4 x per year is becoming compulsory, and all transactions need to be electronic, so that quarterly summaries can be submitted.
ITSA MTD – making tax digital. Get online with a software provider that will automatically be compatible for MTD.
Get started now and get ahead of the competition.
Written by Julie Holland MICB
Over 12 years experience working in the franchise pest control world.
Owner of Blu Bookkeeping www.blubookkeeping.co.uk/about
Licensed, regulated, supported by The institute of Certified Bookkeepers
License number: 22783
Linked in profile: https://www.linkedin.com/in/julie-holland-62291971/
Facebook page: https://www.facebook.com/BluBookkeeping
Blu Bookkeeping specialises in franchise bookkeeping, helping sole traders, Pest Controllers and Locksmiths.