Does a sole trader need an accountant?

Normally when people start working independently they start off operating as a sole trader. Getting set up as a sole trader means you can provide services to lots of different companies, it is you that is the asset. Most work and build up business and when profit starts to meet a certain level, they then form a limited company.

sole traders: do you need an accountant?

Starting out and setting up as a sole trader you can often miss the importance of an accountant to help you with bookkeeping and also dealing with HMRC. Another good reason to bring on board an accountant is that they will know exactly what is required for any interaction with HMRC. It’s very important to get things right from the word go and not to miss any tax return deadlines.

An accountant can advise you on what exactly will be needed in terms of bookkeeping for your tax returns; what is claimable and also the best way to keep accounting records. Being a new sole trader you will need guidance on what is allowed as claimable by HRMC and what is required in terms of receipts (fuel for example).

It can take time to start building up profits and money will also be spent on equipment and possibly office space to operate out from for your services. You will therefore be looking for an affordable accountant that will not only provide you with a professional service but also offer a low cost service. Take a look across the number of online accountants, by providing an online service means many accountants do not have the overheads of a bricks and mortar company.

You can get an online quote from one of our recommended accountants via this website by using the quote button on the right hand side menu.