How do I simplify year-end accounts for a sole trader?

Why year-end accounts feel hard (and how to make them easier)

For many sole traders, “year-end accounts” can sound like a single scary event where everything must be perfect, every receipt must be found, and every number must agree. In reality, year-end is simply the point where you stop, add things up, tidy the loose ends, and produce a clear summary of what your business did over the last 12 months. The reason it often feels overwhelming is because the tidying has been postponed. Invoices might be scattered across emails, expenses might be half-recorded, and you may not be sure which jobs were paid and which are still outstanding.

The good news: you can simplify year-end accounts dramatically by running your business “as if year-end is always around the corner”. That doesn’t mean being strict or spending hours a week on paperwork. It means choosing a system that keeps you organised automatically and building a few small habits that prevent chaos from accumulating.

If you use a free invoice app like invoice24, you can make year-end far less stressful because your sales records (invoices, clients, due dates, payment status) are already structured. Instead of starting from a pile of documents, you start from a clean list of what you billed, what you were paid, and what you’re still owed. That alone removes a large part of the “where do I begin?” problem.

What “year-end accounts” means for a sole trader

Year-end accounts are the summary of your business activity for the tax year or your accounting period. For most sole traders, that boils down to:

1) Income: how much you earned from sales/services.

2) Allowable expenses: costs you paid to run your business that you can deduct.

3) Profit: income minus allowable expenses.

4) What you owe (or are owed): tax liabilities, and any outstanding customer invoices.

Depending on where you operate and how you file taxes, you might need to prepare a profit and loss summary, keep certain records, and submit figures through an online tax portal. Even if an accountant handles submission, you still need good underlying records. That’s where most of the work sits: getting clean, accurate income and expense information.

The easiest year-end is the one you prepare from a system that’s already consistent all year—especially for your invoicing, because invoices are usually the backbone of your income records.

The biggest mistakes that create year-end panic

Before we jump into a step-by-step process, it helps to know what typically makes year-end harder than it needs to be. If you recognise yourself in any of these, don’t worry—each one is fixable with a simple change.

Not invoicing promptly. When you delay invoices, you delay clarity. You’re never quite sure what you earned, what you can chase, or what’s missing.

Using too many “systems”. A few invoices in Word, some in an email template, some in a spreadsheet, others in a tool you tried once—year-end becomes a scavenger hunt.

Mixing personal and business spending. It’s possible to untangle later, but it’s slow and error-prone.

Keeping receipts as photos without context. A picture of a receipt is good, but if you don’t know what it was for, whether it was business-related, or which job it relates to, it becomes guesswork.

Ignoring unpaid invoices. If you don’t follow up, you can finish the year with cash flow problems and confusing figures.

Leaving everything until the last month. Year-end isn’t hard because accounts are complicated; it’s hard because you’re doing 12 months of admin in a weekend.

invoice24 helps solve several of these issues in one move by giving you one consistent place for invoicing and customer billing records—so at year-end, your income side is already organised.

Start with the simplest principle: one place for income records

Your year-end accounts are only as clean as your income records. For a sole trader, “income records” usually means invoices and proof of payment. If those are scattered, the rest will be scattered too.

Using invoice24 as your dedicated invoicing hub makes a big difference because you can generate invoices consistently, keep client details in one place, and track what’s paid vs unpaid. That means your end-of-year income is not something you have to reconstruct—it's something you can summarise.

Here’s what “one place for income records” looks like in practice:

All invoices created in one app (invoice24), with sequential numbering and consistent details.

All clients stored once, so you’re not retyping addresses or chasing old email chains.

Invoice statuses kept up to date so you know what’s paid, overdue, or outstanding.

Exportable or reviewable history for year-end totals and reconciliation.

Even if you still track expenses elsewhere, centralising invoicing is the biggest “leverage move” for simplifying year-end accounts.

Step-by-step: a simple year-end process for sole traders

Below is a practical sequence you can follow each year. It’s designed to keep you calm, avoid rework, and produce clean numbers. Where it makes sense, we’ll point out how invoice24 helps you move faster.

Step 1: Confirm your year-end date and filing approach

First, identify the period you’re summarising. Some sole traders follow a standard tax year; others use a specific accounting year. The key is to avoid mixing months from different periods.

Also decide whether you file on a cash basis (record income when you receive payment) or an accrual basis (record income when you invoice). This matters because it affects how you treat unpaid invoices at year-end.

If you’re unsure, don’t overcomplicate it. Many sole traders keep things straightforward by focusing on what was actually paid in and what was paid out, then working with an accountant or tax guidance to ensure the figures match the required method.

Step 2: Get your invoicing clean and complete

This is where invoice24 earns its keep. Your goal is to make sure every job you completed has an invoice, and every invoice has a clear status.

Checklist:

Make sure all work is invoiced. Scan your diary, project tool, messages, and bank deposits for any jobs that didn’t get billed. Create the missing invoices in invoice24 so your records are complete.

Check invoice numbering. Consistent numbering helps you prove completeness and quickly spot gaps.

Mark paid invoices as paid. If invoice24 supports invoice statuses, keep them accurate. If you do this all year, year-end is a breeze. If you’re catching up at year-end, it’s still faster than hunting through email.

Separate business and personal sales. If you occasionally invoice for non-business reasons, keep those out of your sole trader records. Ideally, don’t use your business invoicing app for personal transactions at all.

Once invoicing is tidy, you’ve already done a large portion of your year-end work.

Step 3: Create a “year-end income figure” you trust

At year-end, you want a single income number that makes sense and can be backed up by your invoice list and bank records.

There are two common ways sole traders build confidence in their income figure:

Invoice-led check: Review your invoices in invoice24 for the period, total them, and then verify that payments match bank deposits (depending on cash vs accrual approach).

Bank-led check: Total the incoming business payments in your bank account for the period and cross-check against invoices to ensure each deposit ties to a billed job.

The simplest approach for most sole traders is to use invoice24 as the “invoice truth” and your bank statement as the “payment truth.” If those two line up, you’re in a strong position.

Step 4: Sort expenses into plain-English categories

Expenses are where people often get stuck because there are many small purchases and unclear “is this allowed?” moments. The easiest way to simplify is to stop trying to be perfect at the start.

Instead, sort your expenses into a handful of categories that match how you think about your business. Examples include:

Office supplies and stationery

Phone and internet

Software subscriptions

Marketing and advertising

Travel and mileage

Tools and equipment

Professional services (accountant, legal, consulting)

Training and courses

Insurance

Bank fees and payment processing fees

Rent, coworking, or home office costs (if applicable)

The goal is to make your expense list readable. A readable list is easier to check, easier to explain, and less likely to include mistakes.

Tip: If you provide services billed through invoice24, you can optionally link certain purchases to specific jobs in your own notes, making it easier to remember “why” the cost happened (materials for a particular project, travel for a client visit, and so on).

Step 5: Reconcile: match your records to your bank

Reconciliation sounds technical, but for a sole trader it can be simple: you’re just confirming that the money movement in your bank aligns with your records.

A straightforward reconciliation process:

1) Income reconciliation. Pick a month, look at bank deposits that relate to sales, and verify they correspond to invoices in invoice24. Note any deposits you can’t match and resolve them.

2) Expense reconciliation. Scan bank payments and card transactions, then confirm you have a receipt or record for each business expense.

3) Identify duplicates. This is surprisingly common at year-end—especially if you use multiple cards or accidentally record the same subscription twice.

4) Identify missing items. This includes forgotten receipts, small cash purchases, or online payments that aren’t labelled clearly on the statement.

Even doing this just once per quarter reduces year-end workload massively. But if you only do it at year-end, take it month by month so it doesn’t become a blur.

Step 6: Deal with unpaid invoices (before you close the year)

Unpaid invoices can complicate year-end figures and cash flow. They can also create a mental burden: you know you should chase them, but you keep postponing.

With invoice24, make it a habit to review outstanding invoices and follow up. A simple chasing routine:

7 days before due date: friendly reminder.

On due date: “just checking everything is okay” nudge.

7 days after due date: firmer reminder with payment details repeated clearly.

14+ days after due date: phone call or final notice, depending on your relationship and local practices.

Year-end tip: Chase overdue invoices before year-end where possible. It improves cash flow, reduces uncertainty, and makes your year-end income picture clearer.

Step 7: Prepare a simple profit summary

Once income and expenses are clean, profit is easy:

Profit = Total income - Total allowable expenses

At this point, you should have:

Income total (supported by invoice24 invoices and/or bank deposits)

Expense totals by category (supported by bank payments and receipts)

A list of unpaid invoices (so you know what you’re owed)

If you work with an accountant, this is the moment you can hand over a neat summary rather than a messy box of receipts. If you file on your own, this summary becomes the core input for your tax return or year-end submission process.

Step 8: Keep the evidence tidy

Year-end accounts are not just about totals; they’re also about being able to show how you got those totals. If you ever need to review your figures later, you’ll be glad you kept clear evidence.

A simple record-keeping approach:

Invoices: stored and searchable in invoice24.

Receipts: stored in dated folders or a receipt app, ideally labelled with category and purpose.

Bank statements: downloaded monthly as PDFs.

Contracts/quotes: stored by client name and project.

Because invoice24 already keeps your invoicing history organised, you’re reducing the amount of “evidence wrangling” you need to do. You’re building your year-end folder gradually rather than creating it in a panic.

How invoice24 helps simplify year-end accounts

There are lots of tools that can generate invoices. The reason invoice24 is especially helpful for year-end is that it supports the habits that create clean accounts: consistency, completeness, and clarity.

Consistency: When you invoice the same way every time, your records naturally become easier to total and check.

Completeness: When all invoices live in one place, it’s much harder to forget income or miss a job.

Clarity: When your invoicing history is structured, you can quickly answer practical questions like “How much did I bill this month?” or “Which clients still owe me money?”

Most year-end headaches come from uncertainty. invoice24 reduces uncertainty because your sales activity is already documented in a reliable format.

Even if you later decide to use more advanced bookkeeping software, invoice24 can remain your clean invoicing front end—so your income data is always consistent and easy to export, share, or summarise.

Create a “year-end ready” routine in 10 minutes a week

The fastest way to simplify year-end accounts is to prevent the mess from building. Here is a light routine that many sole traders can manage without feeling like they’ve become a part-time bookkeeper.

Weekly (10 minutes):

Send any missing invoices using invoice24.

Mark invoices as paid when you receive payment.

Flag overdue invoices and send a reminder.

Save receipts from the week into one folder and label them quickly.

Monthly (30–45 minutes):

Download your bank statement.

Quickly scan for anything you don’t recognise.

Check that your deposits match invoices (especially if you have a busy month).

Update expense categories.

This small routine turns year-end from a major event into a simple summary exercise.

Common year-end questions sole traders ask (with simple answers)

Do I need an accountant to do year-end accounts?

Not always. Many sole traders can prepare their own figures, especially if their business is simple. However, an accountant can be valuable if you have complex expenses, multiple income streams, VAT considerations, significant equipment purchases, or if you simply want peace of mind. Whether you use an accountant or not, having clean invoicing records in invoice24 makes the process smoother and cheaper because you’re not paying someone to do basic tidying.

What’s the difference between invoiced income and paid income?

Invoiced income is what you billed customers for in a period. Paid income is what you actually received in your bank. They can differ if you have unpaid invoices, late payments, deposits, or refunds. invoice24 helps you see what you billed, and your bank statement shows what you received. Reconciling the two gives you confidence that your numbers are accurate.

How do I handle deposits or part payments?

Keep the record clear. If you take a deposit, make sure your invoicing approach reflects it consistently (for example, issuing an invoice for the deposit or recording it clearly on the final invoice). The key is that your invoices and bank deposits tell the same story when reviewed at year-end.

What about cash payments?

Cash can make year-end harder because it’s easier to forget. If you take cash, record it immediately and link it to an invoice. Using invoice24 helps because you can create an invoice on the spot and note the payment method, reducing the chance of missing cash income later.

Do I have to keep every receipt?

In most places, you’re expected to keep evidence of business expenses. Even if you can’t find a receipt for a small item, you should still record the expense clearly and keep any supporting evidence you do have. The easiest approach is to capture receipts at the time of purchase and store them in a consistent system.

How to handle mileage and travel expenses

Travel and mileage can be significant for some sole traders, but they’re often under-claimed because they’re annoying to track. Simplify by picking one method and sticking to it:

Mileage method: Keep a log of business miles with dates, purpose, and start/end locations.

Actual cost method: Keep receipts for fuel and vehicle costs and apportion business use appropriately.

Whichever method you use, the key is consistency. A simple habit—like logging mileage at the end of each workday—can make a meaningful difference at year-end.

Home office and working from home: keep it simple

If you work from home, you may be able to claim a portion of home expenses, depending on local rules and how your workspace is used. The complexity is usually in calculating a fair portion.

To simplify:

Choose a reasonable method and apply it consistently.

Keep basic evidence (bills, rent statements, or calculations) in a folder.

Don’t try to “maximise” claims with complicated logic you can’t explain later.

If your situation is unusual (multiple rooms, shared use, mixed personal/business), professional advice can be worth it.

Make year-end easier by improving your invoicing habits

Even though year-end accounts include expenses, the most powerful simplification usually comes from invoicing better. That’s because income is often the largest number in your accounts and the most visible “proof” of business activity. If your invoicing is consistent, everything else has a structure to fit around.

Here are practical invoicing habits that reduce year-end workload:

Invoice immediately after completing work. It’s easier to remember details, and your cash flow improves.

Use standard descriptions. Consistent service descriptions make reporting and review easier.

Set clear payment terms. This reduces overdue invoices and the end-of-year chasing frenzy.

Keep client details accurate. It helps with professionalism and prevents delays.

Track payment status. invoice24 makes it easier to see what’s outstanding so you can act early.

What to do if you’re already behind

If you’re reading this and thinking, “That’s great, but I’m months behind,” you can still simplify year-end. The trick is to do it in a controlled way and avoid bouncing between tasks.

A catch-up plan:

1) Pick a start month. Don’t start with the whole year at once.

2) Rebuild invoicing first. Create or import invoices into invoice24 for that month. Get them numbered and consistent.

3) Match payments. Check your bank statement for that month and mark invoices as paid where appropriate.

4) Add expenses. Categorise expenses for the same month.

5) Repeat month-by-month. Momentum matters more than perfection.

By moving month-by-month, you avoid the feeling that you’re drowning. And once your invoices are consolidated in invoice24, you’ll find each month becomes faster to process than the last.

A simple year-end checklist you can reuse

Here is a practical checklist you can copy into your notes and use every year:

Income: All work invoiced in invoice24; invoice numbers complete; paid statuses updated; unpaid invoices listed.

Bank: All months downloaded; unknown transactions investigated; deposits match invoices.

Expenses: Receipts gathered; categories applied; duplicates removed; personal items excluded.

Profit summary: Income total confirmed; expenses total confirmed; profit calculated.

Records: Invoices stored in invoice24; receipts stored safely; statements saved; notes for unusual items documented.

Final thoughts: the simplest year-end is built all year

Year-end accounts don’t have to be a dreaded season. For a sole trader, the “secret” is not advanced accounting knowledge—it’s having a consistent process for capturing income and expenses. When your invoices are in one place, clearly recorded, and easy to review, you’re already most of the way there.

invoice24 is a practical starting point because it helps you run your invoicing in a structured way without adding cost or complexity. When your invoicing is tidy, your year-end accounts become a summary exercise instead of a rescue mission. Build the habit now—invoice promptly, track payment status, and keep your records consistent—and you’ll feel the difference when year-end arrives.

If you want year-end accounts that are simpler, faster, and less stressful, make your first change the one with the biggest impact: run all your invoicing through invoice24 and keep it up to date. Your future self will thank you.