Whether you’re a freelance hairdresser, photographer or graphic designer, business consultant or tradesperson, keeping on top of your finances and cashflow is paramount to the success of a sole trader business. Although it might seem easier to keep track of expenses and income in a spreadsheet, is it the most efficient and cost-effective way to spend your time manually entering figures? In this article we discuss the best accounting software for a sole trader business and the advantages (and disadvantages) these have over a spreadsheet.
Do sole traders need accounting software?
Sole traders do not need accounting software, but it can be a very helpful tool. If you are a sole trader who is just starting out, you may be able to get away with using a spreadsheet to track your income and expenses. However, as your business grows, it will become increasingly difficult to keep track of your finances using a spreadsheet. Accounting software can help you to:
- Automatically categorise your transactions
- Generate reports on your income and expenses
- Track your cash flow
- Prepare your taxes.
If you want to discuss the best accounting software options for your sole trader business, contact us today on 1300 728 875 or send us a message.
Sole trader bookkeeping
Sole trader bookkeeping is the process of recording and tracking financial transactions for a sole trader business. It is important for sole traders to keep accurate records of their financial transactions, as this will help them to stay on top of their finances, manage their cash flow, and file their taxes accurately.
There are two main types of bookkeeping systems: manual and automated. Manual bookkeeping involves recording transactions by hand in a ledger. Automated bookkeeping involves using accounting software to record transactions.
If you’re a tradesperson running a business, check out our article on bookkeeping for tradies containing tips to save you time and money.
Advantages of using accounting software instead of spreadsheets
There are several advantages to using accounting software instead of spreadsheets for sole trader bookkeeping. Accounting software can:
- Automate many of the tasks involved in bookkeeping, such as recording transactions, generating reports, and preparing taxes
- Help you to keep track of your finances more easily
- Provide you with insights into your business performance
- Save you time and money.
Simple accounting software for sole traders
There are a number of simple accounting software programs available for sole traders. These programs are designed to be easy to use and affordable. Some popular options include:
Best accounting software for a sole trader in Australia
The best accounting software for a sole trader in Australia will depend on your individual needs and preferences. Some factors to consider include the cost of the software, the features it offers, and its ease of use. Some popular options for sole traders in Australia include:
- QuickBooks Self-Employed
- MYOB Essentials
Best free accounting software for a sole trader
There are a number of free accounting software programs available for sole traders. These programs may not offer all of the features of paid programs, but they can be a good option if you are on a budget. Some popular options include:
Hnry accounting and tax app for sole traders
Hnry is a cloud-based accounting and tax app that is designed specifically for Australian sole traders. The app takes care of all of your bookkeeping, tax, and compliance needs, so you can focus on running your business. Hnry is a great option for sole traders who want to save time and money, and who want to ensure that their taxes are filed correctly.
What makes Hnry different to other accounting software?
Hnry is different from other accounting software in a number of ways. Hnry is:
- Automated: Hnry automatically imports your bank transactions and categorizes them, so you don’t have to do it yourself.
- Ongoing support: Hnry provides ongoing support from a team of certified accountants, so you can always get help when you need it.
- Tax planning: Hnry helps you to plan for your taxes and make sure that you are paying the correct amount.
- Compliance: Hnry ensures that you are compliant with all of the relevant tax laws, so you don’t have to worry about getting fined.
In conclusion, there are a number of great accounting software options available for sole traders. The best option for you will depend on your individual needs and preferences. If you are looking for a simple, affordable, and easy-to-use program, then one of the options listed above may be a good fit for you. If you are looking for a more comprehensive solution that offers features such as automated bookkeeping, tax planning, and compliance support, then Hnry may be a good option for you.
No matter which accounting software you choose, it is important to start using it as soon as possible. This will help you to keep track of your finances from the very beginning, which will make it easier to manage your cash flow and file your taxes accurately.
Using accounting software can be a great way to save time and money, and to ensure that your taxes are filed correctly. By following these tips, you can get the most out of your accounting software and use it to help you grow your business.
Do you need help getting started with your sole trader business? We can advise you on the best bookkeeping options and help you with your accounting software setup. This will help you avoid the cost of transferring to a different software program down the track. Call us on 1300 728 875 to discuss your needs or send us a message.