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Accounts & Expenses

Keeping on top of your accounts is a key part of running a small business.

In this section you’ll find practical guides on recording expenses, tracking your income and expenditure, choosing accounting software, and keeping proper records for Self Assessment.

We also explain how accounting rules are changing under Making Tax Digital (MTD). From April 2026 many sole traders will need to keep digital records and submit updates to HMRC using compatible software. You can learn more in our guide to Making Tax Digital for the self-employed.

Whether you manage your bookkeeping yourself or hire an accountant, understanding how small business accounts work will save you time, money and stress.

Accounting software and accountants

  • Find the best self-employed accounting software
  • Why accounting software is essential for MTD filing
  • Accounting software vs spreadsheets
  • Do you need an accountant if you’re self-employed?
  • Compare sole trader accountants
  • How to switch accountants as a sole trader

Bookkeeping and records

  • Bookkeeping basics for small businesses
  • Accounting deadlines every self-employed person should know
  • A beginner’s guide to self-employed accounts
  • What counts as turnover?

Claiming business expenses

  • What expenses can you claim as a sole trader?
  • How simplified expenses work
  • Claiming home office expenses
  • Mileage allowance explained
  • Travel expenses for sole traders
  • Training expenses explained
  • Equipment and tool expenses

Invoices and payments

  • Free invoice templates for sole traders
  • Setting payment terms for clients
  • What to do if a client doesn’t pay
  • Using a debt recovery service
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How to switch accountants as a sole trader – what to check, how the process works, and tips for choosing the right new accountant.
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Self-employed bookkeeping tips: stay organised and avoid HMRC trouble

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What’s the best accounting software for the self employed (sole traders)?

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Sole traders can choose from a host of online accounting software packages. These tools help manage your finances adn come packed with time-saving features.
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In June 2025, HMRC published new figures on the UK’s tax gap, which show that self employed people are a key part of the story.
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With HMRC's Making Tax Digital (MTD) for Income Tax coming soon, the frequency of filing returns will increase quite dramatically for the self employed.
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UK SMEs that hire accountants report higher revenue and lower stress levels

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An interesting new study shows that small firms that use accountants boost their revenues by 11.5% on average. They also report lower stress levels!
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bright ideas sole trader accountant



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