We offer a number of accountancy solutions to assist you as a sole trader. Although being a sole trader is one of the simplest ways to get started in business, there are many processes that need to be followed.
Are you already trading or considering starting a business as a sole trader? We can help as we are a ‘one-stop-shop’ for accountancy services and tax advice for small businesses and self-employed individuals.
Why set yourself up as a sole trader?
You have total control over the business. Decisions can be made quickly and easily, from accountancy and financial decisions to general business decisions.
It is relatively easy to change your trading identity from that of a sole trader to a limited company.
As the owner of the business, all the profit belongs to you.
When you run an unincorporated business your accounts are not made available to the public, therefore, competitors cannot see what you are earning hence they will know less about how your business works and how it succeeds.
Why sole traders are often successful?
A smaller business can have closer contact with their customers and develop a close rapport in order to give a high level of service and customer care.
Since you are closer to the customer, that allows you to react more quickly to their needs than a larger business.
Small local businesses will be closer to the community and can develop good business relationships with their understanding of the area and local knowledge.
Disadvantages of being a sole trader are:
Should your business fail, you could end up losing your personal assets such as your home, car, etc.
When you run a small unincorporated business, banks will not lend you large sums, and you may find raising finance for the business is very difficult unless you are prepared to change your ownership status.
Smaller business often find that they cannot buy supplies in bulk and do not enjoy the same discounts as larger businesses.