There’s a lot to juggle as a sole trader in the UK, and a solid accounting foundation is just as important for sole traders as it is for larger businesses. As a sole trader, you need not only to  provide services in your area of expertise, but also to handle marketing and manage your own financial accounts such as recording expenses and tracking income. Fortunately, UK sole trader accounting software can help you stay organised.

The best sole trader accounting software can help you keep accurate records, making it easier to submit your    to HMRC each year. Here we cover what to look for in the best accounting software for sole traders, and present our pick of the six best accounting apps for sole traders.

Why should you use sole trader accounting software?

If you’re a sole trader, you might find that there isn’t enough time in the day. The manual entry of every sole trader’s details for accounting and bookkeeping into spreadsheets can take hours every week, especially if you handle a large number of transactions. Accounting software for sole traders is specifically designed to help save your time as well as money, by automating keeping track of expenses, creating invoices, and reconciling bank accounts.

Here are some benefits of the top software for accounting sole traders:

• It stores all of your essential information about sole trader bookkeeping in one location and ensures that no receipts go out of your hands.
• It will automatically track expenses and reduce the tax burden.
• It decreases the chance of human error.
• It aids in forecasting the flow of cash
• It helps you stay on the right side of tax on sole trader obligations

Accounting considerations for sole traders

Any sole trader accounting software can be used, but be aware of your unique tax considerations. One of the main benefits of being registered with HMRC as sole trader is that you do not need to stress about filling in annual accounts or filing corporate tax returns. The registration is completely free and you don’t have to adhere to the same rules as a limited company. This helps cut down on paperwork.

However sole traders must fulfill certain obligations

• Keep accurate records of all invoices and other expenses
• Send Tax returns for self-assessment

With the most effective accountant for sole traders, it’s possible to hit the goals and remain in the forefront of tax compliance concerns.

Best sole trader accounting software

The self-employed have a lot of options when it comes to selecting one of the accounting software for sole trader. Here are our six most popular choices:

Xero

Xero is an all-purpose cloud-based accounting software that was created in the year 2006. It’s loaded with features that can benefit small-sized companies, as well as sole traders. While there are a variety of plans available but the Starter Plan at just PS12 per month is ideal for the majority of sole traders. It includes everything you need to keep your accounts up-to date and to file tax returns. One of the potential drawbacks that comes with this Starter Plan is the 20 invoices per month limitation, meaning you’ll need to keep an the workload in check in the event that you have to upgrade. There are other advantages, though, such as:

• Access from any location
• mobility on the go
• multiple payments processors
• Tracking inventory
• automatic report generation

Sage

Sage Business Cloud Accounting is an ideal choice for people with no accounting experience. It is setup quickly, and if you’ve got any concerns, Sage has 24/7 support via phone and online. Similar to Xero. The Basic Accounting Start Plan will suit the requirements of a majority of sole traders. It cost of PS12 per month, however it could be a problem for those who have higher work loads. It comes with tools for calculating your tax returns for VAT, if applicable. Other benefits include:

• Create and create invoices and
• reconcile bank accounts
• Track payments
• VAT submission

KashFlow

KashFlow is designed in making the accounting process as simple as is possible for sole traders and freelancers. The user-friendly dashboard gives you the most comprehensive overview of your financial position and integrates with a variety of apps, including the most popular e-commerce platforms such as Amazon as well as Shopify. It’s also perfect to expand as your business expands but you’ll eventually have to upgrade to the Starter plan, which costs $9 per month. This is only able to send 10 invoices per month. If you’re still not convinced you should give it a go initially for free. The benefits include:

• easy to setup
• Work from any location
• automatic updates to VAT
• Tax assistance

FreeAgent

With a starter plan of PS19 per month specifically made to cater for entrepreneurs who are sole proprietors, FreeAgent includes all the tools you require to maintain your finances in order. The standard features include a selection of eight invoice templates that are professional as well as time tracking sheets to assist with invoices and expense tracking that is automated directly through a live feed of your bank. Additionally, you can utilize the application to fill in and submit your Self-Assessment Return.

• Invoicing
• cost tracking
• self-assessment
• Profit share calculation

QuickBooks

QuickBooks is among the most popular business accounting software applications, and is equally useful for solo traders, as well to larger businesses. It’s user-friendly at any level, and it comes with a Simple Start Plan for PS12 per month gives you everything you require to monitor the flow of cash and ensure that your taxes are organized. You can also track sent invoices and chase late payments to boost the flow of cash.

• Tracking of expenses and income
• Join multiple accounts at one time
• invoice tracking
• Tax assistance

Zoho Books

Zoho Books is another one of the top accounting software designed for sole traders. It includes a 14-day trial period of the program. There are a lot of reporting features that are available, as well as the capability to monitor the total cost of expenses and keep track of invoices, so you are aware of what your cash flow is and how it is. The basic plan for paid is just PS10 per month, and it can be paid monthly or annually. Other benefits include:

• Client management
• recurring invoices
• payment link generator
• Reminders for payments
• integrated client portal

The tax department at Account Ease file more than 1,700 self-assessment tax return in UK each year, covering a wide variety of income sources and client circumstances. We’re always willing to discuss different ways our team can assist you in completing your tax return.

The Tax Investigation Service also means that for a modest annual fee. We’ll ensure your protection from the need for an HMRC tax inquiry. If you are selected to be the subject of an HMRC investigation. We’ll manage the entire process as well as defend you from HMRC and assisting you in submitting all necessary information while minimizing the impact on your personal and professional life.

If you have any issues you’d wish to share with an employee our team of tax professionals, we encourage you to schedule a no-cost consultation. You can make an appointment by filling out our online inquiry form.