What sole traders need from annual figures
When you work for yourself, the bank balance alone does not explain how the business has performed. A clear set of annual figures helps separate trading income and costs from money you have put in or taken out personally.
Records and expenses to review
Bring invoices, receipts, bank records and any records of cash sales. Where an item has both business and personal use, explain how it is used. Keep the evidence so the treatment can be considered from the facts.
bookkeeping servicesPreparing the year-end figures
We can work through the year’s activity, identify missing information and discuss the figures with you. If the records need attention first, bookkeeping support can help create a consistent starting point for future years too.
From accounts to your tax return
The resulting business figures feed into the relevant personal tax work. Other income may also need to be considered in your return. Our sole trader tax return page explains that next stage without confusing it with the underlying accounts.
sole trader tax returnsYour questions, answered.
Do sole traders need formal accounts?
The format needed depends on your circumstances, but clear income and cost records are essential to working out business results.
What if I have mixed business and personal spending?
Identify the mixed transactions and keep supporting records. The business element needs to be considered rather than assuming the full cost belongs in the accounts.
Is this the same as Self Assessment?
No. The accounts establish the business figures; Self Assessment is the personal tax reporting process those figures may feed into.