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There are many sole trader finance tips lurking around the internet. But some you need to know straight away as they can help your business get off the ground and in the right way.

Make Use of Software

There’s an app for just about everything these days, and many of the best ones are financial apps. Apps such as QuickBooks and reckon Or are among some of the best accounting software for small business you can buy. Additionally, They don’t cost much, and they’re very easy to use for beginners. So you don’t need to have financial experience to get a grip on using these excellent apps for keeping track of your expenses, income, and even paying your taxes.

Open a Business Bank Account

It always helps to have multiple bank accounts, so you know where your personal money and business money lies. Otherwise, you can get confused and spend money that should be going into your business. Obviously, when this happens, you are using business money for personal things, and this can lead to all kinds of problems. Fortunately, it is easier than ever to open a business bank account these days, and all you have to do is get in touch with your current bank.

Sole Trader Finances Relies on Accurate Records

One of the worst things you can do as a business owner is to neglect your records. Keeping a record helps with challenging any legal issues, and it also helps you understand exactly where your money lies. But you can also use records for analyzing the data within and making actionable decisions moving forward as a business. Keeping records can be as easy as listing them in a notebook or ledger, or you can use spreadsheet software or apps like QuickBooks.

Learn What You Can Claim

According to some of the latest figures in the UK, around £962 million of expenses go unclaimed each year. This is a shame because you could be losing out on money that you could put back into the business or use for personal stuff. From a business perspective, you are entitled to claim deductions on your taxes. As a direct result, this means you will pay less tax per year. Some common examples include the equipment, cost of postage, and bank charges.

Get to Grips with Taxes

Taxes are essential to your business. Although they are an expense, they are necessary ones. Otherwise, you could land in legal hot water. And when this happens, you will face hefty fines and even jail time. And no matter the size of your business, you are always under scrutiny. So to avoid the worst possible outcome, make sure you learn how to use your government’s online tax system and always complete the self-assessment on time according to your country’s laws.

Summary

Keeping track of your sole trader finances is key to a successful small business. You can use software and apps to help you make sure you keep accurate records and learn to pay taxes.