As previously discussed, there are numerous confusing aspects of being a sole trader, many of which can interfere with your actual work.
Here are three top tips for sole proprietors that should make life a little easier and your working time a little more productive.
Self-employment is all fun and games until you realise how much tax you have to pay. You run your business as an individual and keep all business profits after taxes. You are solely responsible and liable for any losses your company suffers. This makes it a dangerous job. Best Accountants for sole traders reduce the risk factor of your business by taking over your finances and ensuring that no losses occur. We provide accounting solutions to your problems through dedicated, skilled bookkeepers who will collaborate with you to ensure that your company's funds, expense forms, bills, and everything else is in good working order.
Improve your time management skills.
Being able to effectively manage your time is critical to your success as a sole proprietor. With so many different aspects of running a business to manage and organise, being able to manage your time precisely and plan ahead is critical. Make meticulously timed plans and learn how to be stricter with yourself when sticking to them. Make a concerted effort to eliminate all "dead time" from your workday—a good way to do this is to carry your laptop with you wherever you go, in case you find yourself twiddling your thumbs instead of getting on with whatever you need to do. This is a particularly useful tip if you're taking public transportation and should be working rather than staring out the window.
Investigate the law.
As a sole trader, you are most likely to be caught out if you do not operate within the law. There are many regulations that apply specifically to sole proprietors, but the good news is that they are usually much less complex and manageable than those that apply to larger businesses.
It may take some of your valuable time now, but ensuring that everything you do is completely legal protects you, your work, and could save you a lot of time, money, and worry in the future. One thing to keep in mind is that you are responsible for properly filing your tax returns each year, and if your annual turnover exceeds £73,000, you must register for VAT. Some people are not confident in their ability to complete this type of administrative task, so it can be completed by a third party accountancy specialist such as Just Accountant if desired.
Allow Yourself a Genuine Workday
If you've ever worked remotely or from home, you're well aware of the challenges that can arise when attempting to maintain productivity. The world is full of distractions, and when you're your own boss, it's all too easy to succumb to them and waste your entire day. To combat this, make your sole proprietor workday as similar to that of the average worker as possible. This could include things like a 'clock-in time,' predetermined breaks, going for a walk during lunch, and so on. Some people find it very useful to set a 'cut-off' time after which you are not allowed to do anything related to work- this allows you to get some necessary 'down-time' and creates a restriction on your work-day, which helps to eliminate procrastination.
Some people find it useful to create a space that is exclusively reserved for working and free of the distractions that come with being in your own home if they work from home.
Look for a good insurance policy.
When working as a sole trader, proper insurance coverage means that you will be able to go about your work activities without worrying about what might happen if something goes wrong.
Finding a good commercial insurance policy is critical. Consider what you need to be covered for, and then consider any additional coverage you may need to add to your policy to ensure it is as comprehensive as possible. There are numerous excellent business insurance policies available, so shop around until you find the best one for you.
In addition, we have a website with the domain name CruseBurke, where we provide accounting services in Croydon.