As a sole trader, you are the boss of your own business. While this can be highly profitable, it also comes with a unique set of challenges, such as managing your own taxes and determining what business expenses you can claim. In this article, we look at some simple ways to overcome these challenges so that you can focus on doing what you do best – being a successful sole trader!
The first step to running a successful sole trader business is writing a business plan. Getting clear on your goals and how you plan to achieve them is the best way to set yourself up for success. Take some time to think about what makes your business unique and find a niche that you can capitalise on.
Once you have a clear idea of where your business is headed, here are some other important tips to keep in mind:
Stay organised by using a planner or scheduling app
If you’re a sole trader and want to stay on top of your tasks and achieve success, using a planner or scheduling app is essential. Planning ahead can save a lot of time, frustration, and money. Online scheduling apps provide an easy way to check deadlines, create due dates, set reminders for upcoming events, and track progress over time. Researching different options is crucial since there are many satisfying but different kinds of planners and apps on the market today. Once you find a planner that works perfectly for your needs, you’re all set to reap the rewards that come with being better organised!
Get help from a virtual assistant for tasks like customer service or admin
For small business owners who are struggling with tasks like customer service or admin, a virtual assistant could be the perfect solution. There is no need for expensive and time-consuming hiring or onboarding processes — just access to a skilled individual who can help make life easier by taking away small but important tasks that are draining precious time. With a virtual assistant, small business owners can focus on the stuff that matters most, like growing their business and delighting customers. There are many great VAs to be found on freelancing sites like Fiverr, all you have to do is search and compare their different service options.
Keep your marketing efforts consistent by setting up a social media schedule
Having a presence on social media is key for sole traders, contributing to an increase in brand recognition and understanding. Developing a consistent marketing strategy is essential to success, but there’s no need for this to be overwhelming – setting up a social media schedule makes it easy. Spread over the week, you can plan ahead with content ideas like customer spotlights, customer reviews, and promotional offers, breaking down what may seem like an intimidating task into achievable chunks that work with your timeframe and available resources. A clear strategy for social media gives sole traders the unique ability to stay top of mind and maintain relationships with existing customers whilst gaining new ones too.
Use online tax software to keep track of your finances
As a sole trader, it’s important to be aware of the tax-free threshold, as well as the threshold for registering for goods and services tax. Online tax software can help you do this quickly, as well as keep track of all your tax-related information. TaxTank is tax software that is purpose-built for sole traders. Not only does it help keep track of your income and expenses, but it also allows you to lodge quickly and easily with the MyTax report. No more running to a registered tax agent at the last minute! With an online platform like TaxTank, you can take greater control of your business financials and tax position. Plus, you won’t have to worry about being disorganised by paper documents or getting overwhelmed dealing with complicated paperwork – all it takes is signing up for their service and entering data into an easy-to-use system.
Achieving total visibility of a business’s financial performance can be difficult but, with TaxTank’s innovative sole trader tax platform, we’ve made it so easy to find and align invoices in real-time directly with your bank transactions. This feature creates precision in managing cash flow and highlights what’s been paid or is outstanding. From just $9 per month go beyond spreadsheets or business apps to keep your sole trader business finances in order with TaxTank. Make smarter allocations of business expenses via live bank feeds and store your receipts in the cloud to give you greater surety over your tax affairs. No more paper receipts and no more lost or misplaced documents. When you can see your tax position 365/24/7 helps not only to ease the stress when it’s time to lodge your own tax return and pay tax for your business, but you can make more optimal business decisions all year round. So why wait? Get started today and keep your income tax and sole trader business finances in top shape, with TaxTank!