Could your bank balance look right while your business records are wrong? A card platform might deduct a fee before paying you. A personal purchase might sit among business costs. An unpaid invoice might never appear in your year-end notes.
If you work for yourself in Dudley, Stourbridge, Halesowen or Brierley Hill, use these seven checks before preparing your accounts. Real Key Accountancy supports sole traders across the West Midlands from its Wolverhampton base.
1. Recording only the net card payment
A customer pays £100. Your payment provider deducts £2 and deposits £98. Recording only £98 can hide the full sale and the fee. Compare the provider statement with the bank deposit. Can you explain the difference for each payout?
2. Mixing personal and business spending
Mark personal payments on your bank statements before calculating business costs. For shared costs, retain a reasonable explanation of the business element. A payment from a business account is not automatically a business expense. Read HMRC’s self-employed expenses guide for the current categories and rules.
3. Missing a source of income
List every way customers pay you: bank transfer, cash, card, marketplace or a second account. Then check that your records cover each source. HMRC says self-employed people need records of all sales, income and business expenses. See the official record-keeping checklist.
4. Keeping payments without receipts
A statement shows where £75 went, but may not explain what you bought. Collect supplier invoices and receipts in one digital folder. If a document is missing, flag the payment instead of guessing. Real Key Accountancy’s bookkeeping services can help establish a repeatable routine.
5. Losing track of unpaid invoices
List customer invoices still unpaid at year end and supplier bills you have not paid. Keep their dates and later payment details. The treatment depends on your accounting basis: GOV.UK explains cash basis, while traditional accounting records some items at a different time.
6. Treating equipment like everyday supplies
Keep separate details for laptops, tools, machinery and other significant purchases. Record the invoice, date and business use. HMRC’s equipment guidance explains why treatment can differ.
7. Waiting until the final week
Check sales, bank deposits, expenses and missing documents monthly. Twelve months of unexplained transactions may require extra reconstruction before accounts can be prepared. If you have fallen behind, see catch-up bookkeeping or compare ongoing bookkeeping packages.
What should you gather before asking for a quote?
- Your year-end date and a description of your work.
- Statements for every business bank account and payment platform.
- Sales records, invoices, receipts and cash-income records.
- A short list of missing or unexplained items.
You can ask for help even when some records are missing. Explain what you have so the work can be scoped honestly.
How much does sole trader accounts preparation cost?
Real Key Accountancy prepares non-statutory sole trader accounts from £499 within its approved service scope. The final fee depends on the condition and volume of records and is subject to office approval. Catch-up bookkeeping is quoted separately when required. Personal tax-return preparation should be handled by an appropriately authorised adviser.
Ready to organise your year-end records?
Tell us what you do, when your year ends and how your records are currently kept. Explore sole trader accounts support or visit Real Key Accountancy and speak to the team now.
This article provides general information, not personalised accounting or tax advice.