Record keeping for sole traders
Good records are not just for compliance; they also improve pricing, planning, and decision making.
Set up one place for invoices, expense receipts, and bank exports. A clean folder structure and monthly reconciliation make tax returns faster and less error-prone.
Many mistakes happen when records are rebuilt from memory near deadlines. Keep notes with unusual transactions so future-you understands the context immediately.
Consistent records help you spot trends like margin decline, rising costs, and seasonal dips before they become bigger problems.
Key points
- Reconcile income and expenses monthly.
- Keep digital copies of receipts and invoices.
- Tag unusual transactions with short notes.