You send your invoices, keep your receipts and deal with your tax return when the time comes.
But as your business gets busier, there may come a point when doing everything yourself stops making sense.
So, do you actually need an accountant as a sole trader?
The short answer is no, there is no general legal requirement for a sole trader to have an accountant.
The more useful question is whether managing everything yourself is still the right choice for your business.
What can you do yourself?
Plenty of sole traders start by managing their own bookkeeping.
If your business is straightforward and you understand what records you need to keep, you may be comfortable recording your income and expenses yourself.
You can also complete and submit your own Self Assessment tax return.
The important part is making sure your records are accurate and kept up to date.
As your business develops, however, the amount of time you spend keeping everything organised can increase too.
That’s when getting some help can start to make a difference.
When might an accountant be useful?
One of the clearest signs is that your accounts are beginning to take time away from the work you actually get paid to do.
Perhaps bookkeeping keeps getting pushed to the bottom of your list. You may find yourself catching up on records in the evening or trying to remember what a payment was for several months later.
You might also want someone you can ask when you’re unsure about something rather than trying to find the answer yourself.
Accounting support can take that work off your desk while helping you keep your business records in order.
What does an accountant do for a sole trader?
The support you need will depend on your business.
For many sole traders, one of the biggest benefits is having someone looking after the accounts throughout the year rather than only thinking about them when a tax deadline approaches.
That can include keeping your bookkeeping current, preparing the information needed for your tax return and helping you understand what you need to provide.
With Making Tax Digital for Income Tax now being introduced, regular bookkeeping is becoming even more important for many sole traders.
Instead of relying on an annual catch-up, MTD requires those within the rules to maintain digital records and provide information to HMRC during the year.
What about accounting software?
You can buy accounting software and manage everything yourself.
Software can make recording transactions easier, but it doesn’t necessarily answer the questions that come with running your business.
If you’re unsure whether something has been recorded correctly or what you need to do next, having a real person to ask can be valuable.
With Brease, you don’t need to choose accounting software and then find someone separately to help you use it.
Your accounting software is included as part of the service, alongside support from real accountants.
Is an accountant worth the cost?
This will depend on what you want from the service.
If you’re comfortable managing your accounts and have the time to keep everything current, doing it yourself may continue to work well.
If bookkeeping is taking up time you’d rather spend working, or your records regularly fall behind, paying for support can make much more sense.
It isn’t only about completing a tax return.
It’s about having your accounts looked after throughout the year so they don’t become another job waiting for you when your working day is finished.
A simpler option for sole traders
Brease is designed specifically for sole traders who want their accounting to be straightforward.
We combine easy-to-use accounting software with ongoing bookkeeping and support from real accountants.
If you’re switching from another accountant, we’ll help with the move. If you’ve been managing everything yourself and your bookkeeping needs catching up, we can help get your records back up to date before your regular monthly service begins.
Once you’re set up, we keep your bookkeeping current throughout the year and help you stay ready for your Self Assessment and MTD requirements.
Do you need an accountant?
Not every sole trader needs to hand over their accounts.
But if managing them yourself is becoming another job on your list, it may be time to decide whether your time could be better spent elsewhere.
Brease gives you the software and accounting support in one monthly service, built around the needs of sole traders.
See what Brease would cost for your business.
Feel the Brease.
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Looking for more simple business advice?
This guide is part of the Brease Guides collection, created to help sole traders understand bookkeeping, tax and Making Tax Digital without the jargon.
