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Keeping financial records as a sole trader

Good financial records are essential if you run your own business as a sole trader. Known as bookkeeping, the process involves recording all your business transactions, income, expenses, and any assets such as equipment, or liabilities such as loans.

Maintaining accurate bookkeeping records is essential for every business. These records form the basis of your Self Assessment tax return to HMRC, helping you pay tax correctly and claim tax relief on allowable expenses. Keeping accurate bookkeeping records also helps you keep track of your profits and losses, plan your cash flow, and make more efficient and informed business decisions.

What bookkeeping records do sole traders need to keep?

Smaller sole traders are only required to keep basic records of income and expenditure, also known as single entry bookkeeping.

Watch our video guide or learn more about our online accounting and bookkeeping services.

Confirm Transactions

The number of monthly transactions you have entered based on your turnover seem high. A transaction is one bookkeeping entry such as a sale, purchase, payment or receipt. Are you sure this is correct?

Yes, submit my quote
No, let me change it

Please contact our sales team if you’re unsure

VAT Returns

It is unlikely you will need this service, unless you are voluntarily registered for VAT.

Are you sure this is correct?

Yes, the business is VAT registered
No, let me change it

Call us on 020 3355 4047 if you’re not sure.


You will receive our bookkeeping software Pandle for free, as part of your package.

You can use this to complete your own bookkeeping, or we can provide a quote to complete your bookkeeping for you.

Please select and option below:

I will do my own bookkeeping
I want you to do my bookkeeping

Call us on 020 3355 4047 if you’re not sure.