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  • Writer's pictureNicola Fallon

Why keeping digital records is important for Sole Traders

Updated: Jul 12, 2023

We all love a good spreadsheet don’t we? But this really isn’t the best method for keeping track of your finances and here’s why.

Managing a spreadsheet and ensuring all of your transactions are logged can be very time consuming, you may also find inaccuracies due to human error. It happens, everyone makes mistakes. The only problem with this is, it’s so much more difficult to unravel if your accounts don’t reconcile.

We’ve recently introduced Coconut to our Sole Trader clients and they are really feeling the benefit of using it. Coconut monitors your financial transactions, giving you an idea of how much money you need to set aside for your tax bill, meaning no nasty surprises!

By using the mobile app you can track all of your expenses, simply just upload your receipts and invoices by taking a photo as and when you spend. This eliminates the need to hoard paperwork and worry about receipts and invoices going missing as they are safely stored so that you can access them from wherever you have an internet connection. No need to worry if HMRC investigates, everything will be in one place!

Coconut connects with most major UK bank accounts enabling you to monitor your income. You can see how your business is performing whilst on the go. You can even use it to send branded invoices. With a simple touch of a button you can monitor who has paid you and chase anyone who hasn’t, you don’t need to be sat at your desk to do it as it can all be controlled from the app.

What’s great about Coconut is that it gets you prepared for MTD. The software is MTD compliant so you don’t need to stress about changing software providers beforehand. You’ll already be compliant and have a much smoother, more streamlined process for your bookkeeping.

For Non-Vat registered Sole Traders you could have all of this with monthly bookkeeping reconciliation and we will create your tax return too for less than £50 per month, how does that sound? Not much money when you consider how much time you will save and the insight you will get into your business.

If you want to chat about how using Coconut can help your business then please get in touch!


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