How to Prepare for Year-End Accounts
As a sole trader, preparing for year-end accounts and tax filing can be a daunting task. After all, how can you be sure that you have everything you need? However, with the right know-how and appropriate steps taken throughout the year to prepare, it transforms tax filings into a relatively straightforward process.
If you’ve started a sole trader business this year and are seeking guidance on how to properly prepare for next year’s tax accounts, this guide will help ensure a smooth and stress-free process for you.
Keep Accurate Records Throughout the Year
The key way to be ready for year-end accounts from HMRC is to keep on top of your records throughout the year by maintaining accurate records of your business transactions, from invoices, receipts and bank statements to supplier statements and other income and expense records. Don’t leave it last minute!
However, this can sometimes be a hassle when a business is entering really busy periods, which is why many companies consider getting a sole trader bookkeeper. They will handle this job and allows you to focus purely on running your business.
Know the Deadlines
The tax system functions on a strict annual timetable, and you cannot afford to miss the deadlines – doing so will result in penalties added to your tax bill.
The sole trader registration period ends in the first week of October, which will put you in line for tax returns the following year. The deadline for paper tax returns is midnight on 31st October, while the deadline for online tax returns is midnight on 31st January. This is also the deadline for paying any tax you owe. For more information, consult the gov.uk website.
Chase Payments and Sort Expenses
Get your financial loose ends tied up before the reporting deadlines. This includes tying up any outstanding invoices and banking any payments you’ve received so that your account is as accurate as possible. Reporting expenses will reduce your business’s profits, meaning you will pay less corporation tax, so there’s an incentive to keep track of anything you spend.
Seek Professional Small Business Bookkeeping and Accounting Services
Stonehouse is one of the leading sole trader and small business accounting services in Peterborough, and already has all the key information to navigating the many financial records you need to preserve. Our top-quality bookkeeping team will keep all the necessary records for you, preparing you for the end of the tax year without even having to double-check. Removing the worry and hassle of keeping everything in order means you can focus on running your business.
With over thirty years of leadership in the Peterborough area and beyond, Stonehouse Accountants is a surefire guarantee of a small business corporate tax accountancy team that will nurture your business’ finances to maximum effect. If you are interested in taking us on for your growing business, or have never used accounting services before and wondering more about what we do, contact our team today to get started.