Setting up as soletrader but question regarding book-keeping

[simpson7647]

Hi all,

I've been setting up an online e-commerce store for a few months and it's now ready to officially launch. I currently work full time and I'm yet to register as a soletrader and haven't logged the book-keeping side of things on an online piece of software as of yet - (all is in paper form but I look to have it added to the likes of accountsportal etc.. (suggestions welcome)

I'm looking to register as a soletrader today as well as sort out the book-keeping side of things but have a few questions.

- I have had a few sales during the last month or so so shall these be logged at the date they were completed or all on today's dates?

- In terms of expenses, shall these be logged on the date completed or on today's date?

Many thanks all and I look forward to hearing from you.

Kind regards,
Ryan,

 

[Gecko001]

As a sole trader you do not register your business. You tell HMRC that you are self employed and give them the name of the business under which you trade. Absolutely nothing wrong with telling HMRC that you started trading a month ago or even earlier.

In fact in your case you must tell them that you have already started to trade as you have sold items. To "pretend" that you sold them later than you did could get you into trouble as in some circumstances it would be considered false accounting or even fraud. You must be accurate in your bookkeeping/accounting.

 

[simpson7647]

Thanks for the reply - much appreciated.

So backdate everything and record it as the amount hit the bank account? - that's another question, is it best to record everything on the date the sale/purchase has been made or the date it hits the bank account?

Thanks,

 

[Gecko001]

Thanks for the reply - much appreciated.

So backdate everything and record it as the amount hit the bank account? - that's another question, is it best to record everything on the date the sale/purchase has been made or the date it hits the bank account?

Thanks,

A good question. I record the date I receive the cash or cheque or whenever I get it transferred electronically to my bank account. I do not do any online sales so that might be a little different.

Accountants and bookkeepers here might give you a more precise answer.

 

[Scalloway]

If you have a turnover of £150,000 or less a year you can use the cash basis for your accounts and tax.

https://www.gov.uk/simpler-income-tax-cash-basis/who-can-use-cash-basis

 

[simpson7647]

Thanks for all the replies.

What are peoples recommendations? Would it best to input eveything one by one or create a total for total incomings / total outcomings for that period and import that? Second option would certainly save time.

Thanks again,