Not many people enjoy keeping financial records, but if you are a sole trader, you will have to – unless you hire an accountant for sole traders in Doncaster or wherever you are located to do it for you. Here are some common bookkeeping errors sole traders make that you should try to avoid.

Leaving it late

Bookkeeping is something that should be a week-to-week process – part of regular business operations – and not something crammed into a few days before the tax return is due. While that might seem like a time-saver, it could leave you in trouble if HMRC audits your business and decides your books are not professionally maintained. It can also leave you struggling to recall vital information about income and expenses months after the fact.

Not checking bank statements

This does not mean checking the actual balance, but rather comparing the data on the statements with the payment and income data in your company books. The purpose is to make sure that the books are an accurate recording of your business cash flow – the money coming in and going out.

Not knowing your system

It does not matter whether you choose to keep your books in an old-fashioned cash book or prefer electronic bookkeeping using Microsoft Excel or specialist accounting software. The important point is that you are comfortable with your choice and can get access to any information easily when you need it.

At Adaptive Accountancy, we provide round-the-clock bookkeeping help for sole traders. Call today for details.