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If your business is a one person show, or still a micro operation, setting up as a sole trader certainly has its advantages. Apart from being comparatively easier to set up than a limited company, sole traders have no obligation to file their accounts. So why do they need sole trader accounting software? There is still a requirement for sole traders to keep a record of all sales and income, as well as business expenses, in case revenue asks to view them.

Sole trader accounting software should be used, not only to keep affairs in order, but also to give you an idea of how your business is performing. Remember, sole traders are not a limited company and therefore you can be personally liable for any debts your business accrues. Using the suite of reporting features provided by sole trader accounting software can reduce your risk of being liable for debts. More positively, the critical information the software provides on your business performance can help you make better business decisions, leading you to success.

As an entrepreneur who sets up as a sole trader, you will be taxed through self assessment, on the entire earnings of the business. This differs to a limited company but keeping records through sole trader accounting software is nonetheless extremely important. VAT may also be a relevant concern for you if your turnover meets a certain threshold. If you are required to register for VAT it will be your responsibility to make required VAT returns to revenue.

Given the nature of micro businesses and sole traders, such as your local newsagents or hairdressers, time is always of the essence. One person can often be responsible for every aspect of the business. A simple sole trader bookkeeping package is needed that will keep their information in order and, crucially, save them time in doing so. Now you can spend more time making sure customers are happy, rather than the tax man.

Here at Big Red Cloud, we’d say sole trader accounting software is a must have. It will save you time, make your life easier and most importantly, set you up for success.

Related: Setting Your Startup Up For Success

Marc O'Dwyer

After completing a Graduate program in Marketing, Marc’s impressive sales career began at Allied Irish Banks, Pitney Bowes and Panasonic where he received numerous Irish and European sales performance awards and consistently exceeded targets and expectations. In 1992, Marc’s entrepreneurial spirit led him to set up his own business, Irish International Sales (IIS). Initially, this company was a reseller for Take 5 Accounts and Payroll software. Within four years, IIS became the largest reseller of Take 5 in Ireland, acquiring four other Take 5 resellers. He also found time to set up two mobile phone shops under the Cellular World brand and a web design company offering website design services for small businesses. In 2001, he bought the majority share in a small Irish software business, Big Red Book. At that time, the company was losing money. The company became profitable within two months, and Marc then acquired a payroll company to compliment Big Red Books Accounting products. In 2003, IIS were appointed as Channel Partners with SAP for their new SME product, SAP Business One. Marc sold his Take 5 business and concentrated on developing this new market for SAP As a result, by 2007, IIS was recognised as the largest Channel Partner for SAP in EMEA (Europe Middle East and Africa). In 2008, the IIS Sales Manager bought the Company from Marc in an MBO. He launched Big red cloud in June 2012, the online version of big red book, to date the company successfully converts 59% of trials into sales and the number of customers is growing rapidly. Marc continues to run both Big Red Book and Big Red Cloud which now support 75,000 businesses. He is a very keen sportsman, having played rugby for 20 years, represented Leinster at under 16 and under 20 levels, and league squash with Fitzwilliam Lawn Tennis Club for 10 years. Marc has competed in 11 Marathons, including the London and Boston Marathons, and has completed several Triathlons and Half Ironman races. He has also completed six Ironman Races in Austria(x2), Frankfurt (Germany), Nice (France) , Mallorca (Spain) and Copenhagen (Denmark)

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