Sole Trader Accounting Software Guide

Get back to your clients by using sole trader accounting software to streamline your financial admin. No more boxes of receipts to go through, or entire days written off ‘doing the books.’

You’re already wearing enough different hats, as a sole trader. Everything’s on you. But cloud based accounting software can do most of the heavy lifting when it comes to your financial record keeping and reporting responsibilities.

Take a quick look at what it can actually do and see if you can afford not to invest in sole trader accounting software.

What jobs will Sole Trader Accounting Software do for me?

Accounting software can do many of the everyday record keeping jobs that eat into your working day. For example:

• Create and send professional branded invoices, one-offs or recurring.
• Chase late payments with polite, customisable reminders – you just set up the schedule and they’re sent automatically.
• Enable the software to add late payment fees, according to your policy.
• Automatic bank reconciliation.
• Take regular credit card payments. The software helps you set up monthly payment schedules that your clients can pay securely by credit card.
• Snap and save your receipts to make sure you’ve got all your expenses recorded. This is especially useful for sole traders with mobile businesses. Just fill up the tank, photograph your receipt and upload it to your accountancy app. Done.
• Organise your expenses within the app.
• Manage inventory.
• Work out your income tax and National Insurance Contributions in a couple of clicks. So you’re always aware of how much your tax bill is going to be.
• Get an easy to understand cashflow report – and other financial reports to give you insight into your business’s financial health.
• If you have employees, you can add-in payroll capability.
• Share with your accountant easily. You can give your accountant access to all your in-app data when needed.
• Everything you need for your self assessment tax return submission in one place.

How to choose the right sole trader accountancy software for your sole trader business
There are several things you need to consider as you research the best accountancy software for your business.

How much does Sole Trader Accounting Software cost?

Cloud based accounting software is usually priced as an annual or monthly subscription. Each company has its own way of packaging their features into different pricing tiers. As a sole trader, the smaller, cheaper packages are designed to meet your needs.

One of the main differentiators between providers is the maximum number of invoices you can send in a month. Some are as little as five, which wouldn’t work for sole traders with high client volume.

To get the best value, you will have to navigate some differences between the companies’ pricing strategies. Some have cheaper package prices, with less features included and the option to add paid extra features.

Other have more expensive package prices, but every feature listed is included in that amount. You don’t want to waste money on features you don’t need, but it might be more cost effective to go for a pricier package rather than several expensive add-ons.

Most accountancy software companies regularly have deals that give good discount for the first few months. Just make sure the full rate is within budget, for when the deal ends and it switches over.

What do you need your Accounting Software to do?

This really is the key to getting the most out of your accountancy software. What are you going to use it for?

That’s your list of ‘must have’ features. Get this straight in your head before you even start your research.

Is Sole Trader Accountancy Software scalable?

You want to know that as your business grows, you can move to a scaled up accountancy software package to support that.

For example, if you’re planning to hire a couple of employees next year can you add in a payroll feature? You can’t assume that the software has the capabilities you might want.

Part of this is keeping up to date with HMRC regulations. The software should be MTD for VAT compliant now (even if you aren’t over the threshold yet). And there should be mention of the MTD for income tax that we’re moving towards in 2026.

How easy is Accountancy Software to use?

You should be able to take one look at the dashboard and understand where most things are. Like anything new, you’ll have to put a bit of time in at the beginning to make sure you understand all the features.

But it’s key that the dashboard design feels like it makes sense. Most companies offer a month’s, no obligation free trial, so you get some time to check it out before you commit.

Is Accountancy Software fully accessible?

Can you use your sole trader accountancy app on any of your devices, without losing any design integrity?

Will it look the same on your phone and your laptop – or are some things not available on the mobile app?

The beauty of cloud based accountancy software is that you decide when and where to use it. As long as you’ve got an internet connection, you should be able to use all its capabilities on whichever device you choose. But check out that this is possible before you buy.