✋When you start your own self employed business you may not be able to afford an accountant which is absolutely fine.
TIPS TIPS TIPS ???? So I've compiled some basic tips for a sole trader to get the record keeping off to a good start. Swipe across to see ➡️
✏️As a sole trader you don't legally have to have a business bank account but it is recommended to keep your personal and business transactions separate. There are business bank accounts out there with no monthly service fees e.g Starling & Tide.
✏️You need a system of sorts to organise your transactions. It can be a simple spreadsheet recording income on one tab and expenses on another, its up to you how detailed you make it. I would always recommend a cloud based accounting systems though. Yes the best ones cost money but they can do so much more for you and your business than a spreadsheet (more on that on another post).
✏️Keep receipts organised and stored safely as you need to keep records for 5 years following the 31st January submission for the tax year in question. If you have a smart phone then use it! ???? Download an app such as Hubdoc and snap those receipts on the go.
✏️As well as having a separate main account for business, set up a saver one too and start putting 25% (my personal recommendation) of your income aside ready for the tax bill. It's much easier to do this from the start than having the shock ???? of a tax bill come the end of the tax year and wondering how the hell you're going to pay it!
✏️Knowing when to outsource is key when running your own business. You went into business to do what you enjoy doing, to have the freedom to work when and where you want and it probably didn't involve record keeping. So when it gets too much or you just don't enjoy that aspect of owning a business then get in touch with a qualified ????????♀️ bookkeeper and/or accountant.
????Don't forget, outsourcing services and subscriptions relating to your business are ALLOWABLE expenses which all leads to reducing that tax bill ????
