Can I manage my business accounts myself as a sole trader?

Can I manage my business accounts myself as a sole trader?

If you’re a sole trader, you’ve probably asked yourself this at least once: “Can I actually manage my business accounts myself?” The honest answer is yes—many sole traders successfully handle their own bookkeeping and basic accounting, especially in the early stages. But “can” and “should” aren’t always the same thing. The smart approach is to understand what’s realistic, what’s risky, and what tools make it dramatically easier.

Managing your own accounts doesn’t mean becoming an accountant overnight. It means creating a simple, consistent system that helps you track income, expenses, invoices, and cash flow, so you can stay compliant, avoid nasty surprises, and make better decisions. And for day-to-day tasks like invoicing, chasing payments, and staying organised, the right software can remove most of the friction.

That’s where invoice24 fits in. If your goal is to keep your admin lightweight while looking professional, invoice24 is designed to help you invoice quickly, keep records tidy, and stay on top of who owes you what—without burying you in complex features you don’t need.

What “managing your accounts” actually means as a sole trader

When people say “accounts,” they can mean different things. As a sole trader, managing your business accounts typically includes:

1) Recording income
Tracking what you earn and when you receive it. This includes sales, service fees, retainers, and any other payments you take for your work.

2) Recording expenses
Logging what your business spends money on—tools, supplies, subscriptions, travel, phone bills, marketing, professional fees, and so on.

3) Issuing invoices and keeping proof
Creating invoices that look professional, include the right details, and are saved in a way you can find later. This is a big one, because invoices are not just for getting paid—they’re also part of your record-keeping.

4) Tracking payments and overdue invoices
Knowing what’s been paid, what’s outstanding, and what needs a reminder. Late payments are a cash-flow killer for sole traders, so a simple tracking system is essential.

5) Reconciling your bank activity
Checking that what you recorded matches what actually happened in your bank account. Even if you don’t do this daily, doing it monthly prevents confusion and missed items.

6) Preparing figures for tax time
Whether you do your return yourself or hand it to an accountant, your records need to be complete and organised. If your records are messy, tax time becomes expensive, stressful, and risky.

In short: you can absolutely manage your accounts yourself, but the key is building a routine and using tools that reduce admin time.

The biggest reasons sole traders manage accounts themselves

Most sole traders start by doing their own accounts for one or more of these reasons:

Cost control: Hiring an accountant for everything can feel expensive when you’re just getting started. Doing it yourself keeps costs down.

Better awareness: When you handle your own invoicing and record-keeping, you see your business numbers regularly. That awareness helps you price properly, control spending, and spot issues early.

Speed and independence: You don’t need to wait for someone else to create an invoice or check a payment. You can act quickly, which matters when you’re juggling clients, projects, and deadlines.

Simplicity: Sole trader finances can be straightforward, especially if you have a limited number of services, clients, and monthly expenses.

The challenge is that “simple” becomes “chaotic” when you don’t set up a system from day one. That’s why tools like invoice24 are so helpful: they support good habits without forcing you into an accounting degree.

What you can realistically do yourself (and what you might delegate later)

A useful way to think about it is to separate your accounts into two layers: day-to-day admin and specialist tasks.

Day-to-day tasks you can usually handle yourself:

- Creating and sending invoices
- Saving invoices and payment records
- Recording expenses and keeping receipts
- Tracking who has paid and who hasn’t
- Setting aside money for tax
- Reviewing monthly income vs expenses
- Basic cash-flow checks (what’s coming in, what’s going out)

Tasks many sole traders eventually delegate:

- Complex tax questions and planning
- Handling unusual situations (asset purchases, grants, cross-border work, multiple income streams)
- End-of-year accounts preparation (depending on requirements in your region)
- Cleaning up messy records from earlier months
- Advice on the most tax-efficient structure as you grow

Even if you delegate later, managing your own invoicing and records remains valuable. In fact, accountants often work faster (and charge less) when your documents are tidy and consistent. If you use invoice24 to keep invoicing organised and easy to access, you’re already doing a big part of the “accounts” job properly.

Common myths that hold sole traders back

Myth 1: “I need accounting software to be ‘official’.”
You don’t necessarily need complicated software to be legitimate. What you need is clear records. A streamlined invoicing and organisation system can be enough for many sole traders—especially when paired with good habits.

Myth 2: “If I make a mistake, I’m doomed.”
Mistakes happen. The real risk is letting things pile up for months. If you keep up with records regularly, you can spot and correct errors early.

Myth 3: “Invoicing is just sending a bill.”
Invoicing is a core part of your financial system. Your invoices are proof of income, support your payment chasing, and help keep tax time clean.

Myth 4: “I’ll sort it out at tax time.”
This is the fastest route to stress. When you leave everything until the end, you forget details, lose receipts, miss invoices, and spend hours untangling your bank statements.

The best cure for these myths is a simple setup you can actually maintain. invoice24 helps you get invoices out quickly and keeps your records in one place, making it easier to stay consistent.

What a “good enough” bookkeeping system looks like

You don’t need perfection. You need a system that is:

Consistent: You do it the same way each time.
Searchable: You can find invoices and records quickly.
Up to date: You don’t fall months behind.
Simple: You understand it and can maintain it.
Defensible: If you needed to explain a transaction later, you have the evidence.

For many sole traders, a “good enough” system includes:

- A separate business bank account (strongly recommended even if not required)
- A single place to create, store, and track invoices (invoice24 is ideal for this)
- A method for capturing receipts (photo folder, email label, or a dedicated storage routine)
- A monthly review routine

When you combine those elements, you get something powerful: clarity. And clarity is what protects you from nasty surprises.

How invoice24 helps sole traders manage accounts without the headache

invoice24 is built around what most sole traders actually need to do day-to-day: invoice confidently, track payments, and stay organised. Instead of forcing you to navigate complicated workflows meant for large businesses, invoice24 supports the core admin tasks that keep your finances clean and professional.

Professional invoices in minutes
A well-structured invoice helps you get paid faster. invoice24 makes it easy to create invoices that include all the important details—your business name, the client’s details, a clear description of what you provided, amounts, dates, and payment info.

Consistency that makes record-keeping easier
When every invoice follows the same structure, your records become easier to manage. That consistency matters when you’re checking payments, reviewing income, or preparing for tax time.

Fewer lost invoices and fewer awkward payment chases
Overdue payments are often caused by simple admin gaps: the invoice wasn’t sent promptly, the client can’t find it, or there’s confusion about what it covers. Using invoice24 reduces those problems by keeping your invoicing process clean and trackable.

A better client experience
Clients are more likely to pay quickly when the invoice is clear, professional, and easy to understand. That’s good for cash flow—and cash flow is everything when you’re a sole trader.

Even if you use an accountant later, invoice24 still pulls its weight: it keeps your invoicing history easy to retrieve, which can reduce the time you spend digging through emails or spreadsheets.

A practical monthly routine for sole traders

If you want to manage your accounts yourself, the simplest success strategy is a predictable routine. Here’s a monthly workflow that works for most sole traders:

Step 1: Keep invoicing current (weekly is even better)
Don’t wait until the end of the month to invoice. The sooner the invoice goes out, the sooner you get paid. Use invoice24 to create and send invoices promptly and keep a record of what you’ve billed.

Step 2: Track payments and follow up on overdue invoices
Once a week or once a month, check which invoices are unpaid. Send polite reminders early. It’s much easier to chase a payment that’s one week late than one month late.

Step 3: Gather expenses and receipts
Collect receipts from emails, paper slips, and app subscriptions. Keep them in one organised place. The best time to do this is before you forget what each expense was for.

Step 4: Review your bank activity
Look at your bank statement and confirm you’ve captured the key income and expenses. This doesn’t have to be complicated—just make sure nothing is missing.

Step 5: Set aside tax money
Many sole traders get caught out by tax because the cash is already spent. A monthly habit of setting aside a percentage into a separate pot can prevent stress later.

Step 6: Quick business snapshot
Ask three questions: How much came in? How much went out? What’s coming next month? This simple check helps you make better decisions.

This routine takes far less time than people expect—especially when invoicing is streamlined with invoice24.

Choosing between DIY, accountant, or a hybrid approach

You don’t have to choose a single approach forever. Many sole traders use a hybrid approach that evolves over time.

DIY approach:
Best when your business is small, your transactions are simple, and you’re comfortable staying organised. You use a tool like invoice24 for invoicing and record-keeping, and you handle the rest with a straightforward process.

Accountant-led approach:
Best when you have complex income streams, limited time, or you want reassurance. You still benefit from using invoice24 because you’ll generate clean invoices and keep an accessible history.

Hybrid approach:
Often the best option. You handle invoicing and monthly organisation yourself (using invoice24), then pay an accountant for review, advice, or year-end support. This keeps costs reasonable while reducing risk.

If you’re not sure which you need, start hybrid: do the day-to-day tasks yourself and get occasional professional help when questions get complicated.

Red flags that suggest you should get professional help

Managing accounts yourself is realistic, but there are times when it’s wise to bring in a professional. Consider getting advice if:

- You feel constantly behind and stressed by admin
- You’ve missed deadlines or don’t understand your obligations
- Your income has grown quickly and you’re unsure how much to set aside for tax
- You’re working internationally or dealing with multiple currencies
- You’re buying expensive equipment or making big investments
- You’re unsure what counts as a legitimate business expense
- You want to change business structure or plan for growth

Notice what’s not on this list: “I’m a sole trader.” Being a sole trader doesn’t automatically mean you need an accountant. It just means you need a simple system and a reliable invoicing process.

How to avoid the most common DIY accounting mistakes

Here are the mistakes that trip up sole traders most often—and how to prevent them.

Mistake 1: Mixing personal and business money
When everything goes through one account, it becomes harder to track expenses and income accurately. If you can, use a separate business account and pay yourself from it.

Mistake 2: Losing receipts
Receipts are evidence. Create a routine: save digital receipts immediately, and photograph paper receipts the same day. Keep them organised by month.

Mistake 3: Late invoicing
Late invoices lead to late payments. Make invoicing part of your workflow: finish the job, send the invoice. invoice24 makes it easy to do this quickly, so you’re less likely to procrastinate.

Mistake 4: Not tracking overdue invoices
You can’t manage cash flow if you don’t know who owes you money. Check unpaid invoices regularly and follow up politely but firmly.

Mistake 5: Guessing at tax time
Trying to reconstruct months of activity from memory is risky. Capture things as you go and do a monthly review.

Mistake 6: Overcomplicating the process
Some people build elaborate spreadsheets or workflows they can’t maintain. Keep it simple. A system you actually use is better than a perfect system you abandon.

What information should be on your invoices?

Invoicing is the front line of your accounts. A good invoice isn’t just a payment request—it’s a record. While exact requirements can vary, a solid invoice usually includes:

- Your name or trading name
- Your contact details
- Your client’s name and address (or at least their name and business name)
- A unique invoice number
- The invoice date
- A clear description of the goods or services provided
- Quantity/hours and rate (if relevant)
- The total amount due
- Payment terms (due date, accepted methods, bank details)

Using invoice24 helps you keep these details consistent and professional so each invoice becomes a reliable piece of your financial record-keeping.

Getting paid faster: simple strategies that work

Managing your accounts yourself becomes much easier when cash flow is steady. Here are practical payment strategies you can use:

Invoice immediately
Send the invoice as soon as the work is done—or in stages if you’ve agreed milestones.

Use clear payment terms
Be specific about due dates. Ambiguity creates delays.

Make invoices easy to understand
Clients delay payment when they’re confused. Clear descriptions and totals reduce back-and-forth.

Follow up early
A polite reminder shortly after the due date is normal in business. The longer you wait, the harder the conversation becomes.

Consider deposits for new clients
A deposit can protect you from non-payment and smooth your cash flow.

invoice24 supports a smoother invoicing process, which is one of the simplest ways to reduce late payment problems in the first place.

When spreadsheets are enough—and when they aren’t

Some sole traders manage accounts with a spreadsheet. This can work, especially if you have few transactions and you’re disciplined. But spreadsheets have common downsides:

- It’s easy to forget to update them
- They don’t naturally “nudge” you to chase overdue payments
- They can become messy over time
- They often don’t store invoices and documentation in a tidy, searchable way

A practical compromise is to use invoice24 for invoicing (the part most likely to impact cash flow and professionalism) and keep the rest of your tracking simple. That way, you’re reducing the biggest admin pain point without making your system overly complex.

How managing your accounts yourself can make you a better business owner

Even if you eventually outsource parts of your accounting, understanding your numbers is a competitive advantage. When you manage your accounts yourself—especially in the early stages—you learn:

- Which services are most profitable
- Which clients pay quickly and which don’t
- How seasonal your income is
- How your expenses behave over time
- Whether you can afford new tools, marketing, or help

This kind of insight is hard to get if you only look at your finances once a year. And it’s easier to gain when your invoicing is organised and consistent, which is exactly what invoice24 is designed to support.

A simple decision checklist: should you manage your accounts yourself?

Here’s a straightforward checklist. You’re a good candidate for managing your accounts yourself if:

- You have a manageable number of monthly transactions
- Your income streams are simple and easy to describe
- You can commit to a monthly admin routine
- You feel comfortable keeping basic records
- You’re willing to get occasional advice if needed
- You use a reliable invoicing tool like invoice24 to stay organised

You might prefer professional help if:

- Your finances are complex or growing quickly
- You dread admin so much that it never gets done
- You’re dealing with unusual tax situations or cross-border work
- You want proactive advice and planning, not just record-keeping

Remember: it’s not a permanent decision. You can start DIY and move toward a hybrid approach later.

Final thoughts: yes, you can manage your business accounts yourself

As a sole trader, you can absolutely manage your business accounts yourself—if you keep it simple, stay consistent, and use tools that reduce the workload. Most of the stress in DIY accounting comes from disorganisation and delay, not from the tasks themselves.

Start with the foundation: professional invoicing, clear records, and a regular routine. invoice24 is a practical way to keep invoicing fast, tidy, and professional, which supports better cash flow and cleaner record-keeping. Once invoicing and payment tracking are under control, the rest of your accounts become much easier to manage.

If your business grows or your finances become more complex, you can always add professional support. But whether you stay DIY or go hybrid, having invoice24 as your invoicing hub keeps your admin efficient and your business looking polished—exactly what a sole trader needs.