Recommendation for book on doing own accounts as a sole trader

Addiscomber

I am intending to register as a sole trader shortly, and would welcome any recommendations for a book on how to do my own accounts. The business will be a small sewing based business, run from home, and so I doubt that I will make enough to justify paying someone else to do them.

Bookworm225

don't get a book, work your way through the LITRG guidance on self employment, how to keep records, and how to do accounts and tax (pay particular attention to choosing to claim the "trading allowance" or actual expenses)

as a start up business you will also need to master "capital allowances" and " pre trading expenses" for your first tax return. There are sub sections on both topics 

Self-employment | Low Incomes Tax Reform Group

Addiscomber

Thank you very much. I had never heard of them.

Bookworm225

getting started tip,
make your "year end" (the so called basis period) the 5th of April so that in future your taxable profit exactly mirrors the tax year 6th April to 5th April. Makes your accounts much easier to do.

Trading income: basis period reform | Low Incomes Tax Reform Group

Mistral001

There is a lot on the internet regarding setting up a sole trader business, but very little on bookkeeping.  A simple book on bookkeeping might be worthwhile getting.

As has been said, make sure your end of business year is 5th April and not the end of the calendar year.

Keep it simple.  If you do not have many business transactions, even a couple of simple exercise books is all that is needed to for your "books". 

Keep all your receipts and copies of your invoices etc. in one place.  If they are in digital form, keep them in a computer and make backups.  I am not sure if you can make backups on a mobile, but if you can, then do it.  If they are in paper form, a drawer or cardboard box is all that is needed to start off with.     

Savvy_Sue

Could see what is in your local library?

Addiscomber

Savvy_Sue said:

Could see what is in your local library?

Sadly not at the moment!  My ankle fractured in 2 places on 8th February, whilst I was in A & E it was discovered that I had a respiratory issue that is symptom less (until oxygen levels are measured) and I ended up staying for 7 weeks,  bed bound. I am getting more mobile, but cannot leave the house yet.

Addiscomber

Mistral001 said:

There is a lot on the internet regarding setting up a sole trader business, but very little on bookkeeping.  A simple book on bookkeeping might be worthwhile getting.

As has been said, make sure your end of business year is 5th April and not the end of the calendar year.

Keep it simple.  If you do not have many business transactions, even a couple of simple exercise books is all that is needed to for your "books". 

Keep all your receipts and copies of your invoices etc. in one place.  If they are in digital form, keep them in a computer and make backups.  I am not sure if you can make backups on a mobile, but if you can, then do it.  If they are in paper form, a drawer or cardboard box is all that is needed to start off with.     

Thank you. This is what I have found. Everyone seems to assume that one knows what to write in the books!! I haven't got a clue.

I have sussed out the other stuff, well it is common sense really. 

uknick

Have a look at Bookkeeping for Dummies

Bookkeeping and Accounting All-in-One For Dummies - UK, UK Edition : Kelly: Amazon.co.uk: Books

I've not read it, my go to book was Frank Woods when I started my studies, but the Dummies series of books is generally well thought of.

Savvy_Sue

Addiscomber said:

Savvy_Sue said:

Could see what is in your local library?

Sadly not at the moment!  My ankle fractured in 2 places on 8th February, whilst I was in A & E it was discovered that I had a respiratory issue that is symptom less (until oxygen levels are measured) and I ended up staying for 7 weeks,  bed bound. I am getting more mobile, but cannot leave the house yet.

Ouch! However, if you already have a library card you might find an E-book. Or could you reserve something online and send someone to pick it up? (I hope you have someone who can run errands for you!)

uknick said:

Have a look at Bookkeeping for Dummies

Bookkeeping and Accounting All-in-One For Dummies - UK, UK Edition : Kelly: Amazon.co.uk: Books

I've not read it, my go to book was Frank Woods when I started my studies, but the Dummies series of books is generally well thought of.

I almost suggested this, but never having seen this particular book I didn't know if it would be any good or not. However I very much agree with your assessment that the Dummies series is well thought of. 

SVaz

Open a free Mettle business bank account ( it’s backed by Natwest) and it gives you Free Freeagent accounting software. 

Couldn’t be easier to use. As long as you put stuff in the correct categories,  it does everything automatically and fills in your tax return as you go.  You upload a picture of a reciept for expenses and match it to the corresponding amount on your linked bank feed or you create an expense if you pay in cash or use paypal etc. 

Freeagent has an online ‘knowlege base’  that guides you through every step. 

Even if you don’t expect a large turnover, eventually you will be caught in the ‘ Making Tax Digital’ net so it makes sense to start now.