Sole trader - Accounts

[voyage]

I am currently setting up as a sole trader. Filling in all the forms etc online, bank account opening up next week so fairly exciting times!
Just wanting to make sure everything I have planned out in my head is correct. I will be doing all my own accounts etc and at the end of the year passing these to an accountant to check.

1. I am buying a laptop from a friend. How can I prove this as an expense, do I get them to just simply write a receipt?

2. I will be starting out with for example 5k as an opening balance. How does this work in regards to a sole trader. I know as a limited company you can make a directors loan, is there something similar as a soletrader?

3. I will be operating from one bank account and everything will come in and out of there. As long as I keep receipts will a simple excel sheet documenting this be adequate?

Thank you for any help



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[StevensOnln1]

1) A receipt from your friend for the 2nd hand laptop will be fine.

2) As a sole trader the money would appear on your balance sheet as capital introduced.

3) It's worth having a look at proper accounting software. VT Cashbook is free and often recommended on here.

 

[Ola1]

3, Assuming you already have an accountant, you really should have a chat with him/her about your record keeping technique from the beginning. That way , less hassle for all when the year end accounts are prepared

 

[voyage]

Is an accountant 100% necessary? I am good at keeping track of money and it is a fairly simple retail/trade business I will be running. Buy from location x, sell at Y. I much prefer to give things ago myself and learn the ins and outs instead of paying, if it is all possible yourself.


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[StevensOnln1]

It's possible to do it all yourself but there are plenty of posts on here from people who have tried and end up in a mess.

 

[MyAccountantOnline]

Is an accountant 100% necessary? I am good at keeping track of money and it is a fairly simple retail/trade business I will be running. Buy from location x, sell at Y. I much prefer to give things ago myself and learn the ins and outs instead of paying, if it is all possible yourself.


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You dont have to use an accountant but if you DIY are you really sure you'll claim all allowable expenses properly and ensure you pay all taxes due and nothing more?

Are you happy to spend the time necessary to complete your accounts and tax return.

You'll need to ensure you set aside a lot of time to learn the relevant tax legislation and make sure you do that at least annually to make sure you dont miss anything.

It's a bias view of course but I'd concentrate on keeping some really good accounting records so that you can monitor your business and pay a good accountant to deal with the tax.

 

[voyage]

You dont have to use an accountant but if you DIY are you really sure you'll claim all allowable expenses properly and ensure you pay all taxes due and nothing more?

Are you happy to spend the time necessary to complete your accounts and tax return.

You'll need to ensure you set aside a lot of time to learn the relevant tax legislation and make sure you do that at least annually to make sure you dont miss anything.

It's a bias view of course but I'd concentrate on keeping some really good accounting records so that you can monitor your business and pay a good accountant to deal with the tax.

Very good advice thank you.
My trouble is the one accountant I visited just totally put me off. I know you should not judge all the same, in fact it is very stupid to do so. He just did not seem as clued up or helpful/interested as I would be looking for new business.
Got me thinking about using a small independent or online accountant really.


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[HazelC]

Yes you can do it all yourself but there may be things you are unaware of where you can save money and you could miss out on these.,

 

[MyAccountantOnline]

Very good advice thank you.
My trouble is the one accountant I visited just totally put me off. I know you should not judge all the same, in fact it is very stupid to do so. He just did not seem as clued up or helpful/interested as I would be looking for new business.
Got me thinking about using a small independent or online accountant really.


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Thats a real shame but we're not all the same.

Please dont let one put you off.

 

[Energise Accounting]

some accountants are not interested in what they see as small fees so look for an accountant who specialises in small to medium companies.
@MyAccountantOnline and @kevin.doran may be able to help you.

 

[MyAccountantOnline]

some accountants are not interested in what they see as small fees so look for an accountant who specialises in small to medium companies.
@MyAccountantOnline and @kevin.doran may be able to help you.

Thank you very much.

I'd be happy to help

 

[voyage]

Will be in touch shortly with them.
I did kind of get that impression and I don't want to deal with anyone with that mindset.


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[voyage]

Says I can't message you?


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[kevin.doran]

Says I can't message you?


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You'll need to email Nicola, visit her website for the address.

 

[voyage]

You'll need to email Nicola, visit her website for the address.

Thank you


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[MyAccountantOnline]

You'll need to email Nicola, visit her website for the address.

Thank you Kevin.