What is the easiest way for a new sole trader to manage accounts in the UK?

Getting started: the “easiest way” is the one you’ll actually stick to

If you’re a new sole trader in the UK, the easiest way to manage your accounts is to use a simple, repeatable routine that keeps your records up to date without you having to “do accounting” every weekend. Most accounting stress comes from two things: putting it off and trying to overcomplicate it. The good news is that sole trader accounts don’t have to be scary or time-consuming if you set yourself up properly from day one.

In practice, “easy” means: you always know what you’ve invoiced, what you’ve been paid, what you’ve spent, and roughly what tax you might owe. If you can do those four things consistently, you’re already managing your accounts well. You don’t need a finance degree, and you don’t need to start with a complex system. You need a lightweight process and a tool that removes friction.

That’s exactly where an invoicing-first approach shines. For most sole traders, the heartbeat of their accounts is sales: quotes, invoices, payment reminders, and evidence of what was supplied. Start by getting invoicing and payment tracking under control, then layer in expenses and tax awareness. With a free tool like invoice24, you can begin immediately without paying for features you don’t yet need, and you can keep everything tidy from the moment your first client says “yes.”

What you actually need to track as a UK sole trader

Sole traders often think they need “accounts” like a limited company does. You don’t. You’re essentially running a simple income-and-expenses business record that supports your Self Assessment tax return. Your goal is to keep clear evidence and an accurate summary of:

1) Money in: sales (invoices issued), payments received, dates, and who paid you.
2) Money out: business expenses, receipts, supplier details, and what each expense was for.
3) Business vs personal: which transactions belong to the business and which don’t.
4) Cash flow: what’s outstanding and when you need to chase payments.
5) Tax and compliance: keeping records long enough and being ready for Self Assessment (and potentially Making Tax Digital changes in the future).

Notice what’s missing: you don’t need to “balance a ledger” in the traditional sense to get started. For a new sole trader, the easiest win is to capture the data as you go, so you’re not reconstructing your business from memory months later. That’s why invoicing is such a powerful anchor. When invoicing is consistent, your income records are consistent, and everything else becomes easier.

The simplest setup: one routine, one folder structure, one invoicing tool

You can make accounts management feel effortless by standardising three things:

1) One routine: a small weekly habit (10–20 minutes) to update your records and check what’s unpaid.
2) One folder structure: a clear place for receipts and documents so you never hunt for evidence.
3) One invoicing tool: something like invoice24 that makes it easy to issue invoices consistently and track their status.

Here’s a basic structure that works for most people:

Weekly (10–20 minutes):
- Issue any outstanding invoices for work completed
- Check who hasn’t paid and send polite reminders
- Add any receipts/expenses from the week (snap, upload, or store as PDFs)
- Make a quick note of anything unusual (a refund, a deposit, a big purchase)

Monthly (20–40 minutes):
- Reconcile: compare bank activity to invoices and expenses
- Review totals: income, expenses, and an estimated tax set-aside
- Back up receipts/documents if you’re storing them locally

Quarterly (30–60 minutes):
- Check whether you’re nearing any thresholds (like VAT registration)
- Make sure your record-keeping is complete and tidy
- If you work with an accountant, export/share what they need

This schedule isn’t strict; it’s a template. The “easiest” system is the one you can keep consistent even when you’re busy. invoice24 helps most at the point where sole traders struggle: getting invoices out quickly, keeping them professional, tracking who has paid, and keeping your sales records clean.

Start with invoicing because it solves multiple problems at once

When you’re new, you might be tempted to start with a full accounting package. But the fastest path to calm is usually: create a reliable invoicing workflow first. Here’s why invoicing-first is the easiest approach:

It captures your income data automatically. Each invoice is a clear record of who owes what, for which service, and when it was issued.
It improves cash flow. Professional invoices and consistent reminders reduce late payments.
It reduces admin. If invoicing is quick, you don’t delay it, and your records stay current.
It creates a paper trail. If there’s ever a dispute, your invoices and descriptions matter.
It makes year-end easier. You have a list of sales that can be summarised without guesswork.

invoice24 is designed for exactly this stage. As a free invoicing app, it lets you send polished invoices without a steep learning curve. Even if you later add a separate accounting tool, starting with invoice24 keeps your income side clean and organised from day one.

How to use invoice24 as the centre of your accounts routine

To keep things easy, treat invoice24 as the “front desk” of your business: the place where you create invoices, maintain customer details, and track payments. Then you build the rest of your accounts routine around it.

Step 1: Create a simple client list
Add your main customers as soon as you start talking to them. This saves time later and keeps names, addresses, and emails consistent. Consistency matters because it reduces mistakes and makes your invoices look professional.

Step 2: Set a standard invoice format
Decide on the basics once: your business name, contact details, invoice numbering, payment terms, and bank details. When those are standardised, sending an invoice becomes a two-minute task instead of a half-hour one.

Step 3: Invoice immediately when work is delivered
The easiest way to avoid backlog is to invoice as close as possible to completion. If you wait until “admin day,” it usually turns into “admin month.” Make invoicing part of finishing the job.

Step 4: Track payment status
Keep a simple habit: if you receive a payment, mark the invoice as paid. If you haven’t been paid, the invoice stays outstanding. That alone gives you a clear picture of your cash flow without spreadsheets and guesswork.

Step 5: Use consistent reminders
Chasing money is uncomfortable, so many sole traders avoid it. The easiest way is to make it routine and polite. A short reminder a few days after the due date is professional, not rude. The better your reminder habit, the less stressful your accounts become.

With these steps, invoice24 becomes the tool that removes the friction at the point where sole traders most commonly fall behind.

Keep business and personal money separate (even if you can’t open a business bank account yet)

One of the biggest “easy wins” for accounts management is separating business transactions from personal ones. When everything is mixed, you waste hours untangling it later, and you risk missing deductible expenses or overstating income.

Best option: open a dedicated bank account for business use (even if it’s just a separate current account). Use it for all income and business spending.
If you can’t do that yet: use one card for business purchases and keep a clear note when something is personal.

Even with a separate account, you’ll still sometimes move money between accounts for living costs. That’s normal. The point is to keep the day-to-day business activity as clean as possible so reconciliation is easy. When your invoices live in invoice24 and your business bank activity is separate, you can quickly see what’s been paid and what hasn’t.

Use a “receipt capture” habit so expenses never pile up

Expenses are where many new sole traders lose time. They stuff paper receipts into a drawer, then dread sorting them when Self Assessment is due. The easiest method is to capture receipts weekly and store them in a predictable place.

A simple approach:

Digital receipts: save PDFs into a folder named by tax year (for example, “2025-26”) and subfolders like “Travel,” “Supplies,” “Software,” and “Home office.”
Paper receipts: take a photo and file it the same way, then keep the paper in an envelope labelled with the month.

You don’t have to overthink categories at the start. Your goal is: you can find any receipt quickly, and you can total expenses without hunting through your inbox and wallet.

If invoice24 is handling your sales side, your admin energy can go into building this one habit for expenses. Once receipts are consistently captured, year-end becomes a matter of summarising rather than panicking.

Know what you can claim (without turning your life into a spreadsheet)

You don’t need to memorise every rule, but you should have a basic understanding of what counts as a legitimate business expense. As a sole trader, you generally claim costs that are “wholly and exclusively” for business purposes. The easiest way to manage this is to keep a simple list of common expense types you use, and be consistent.

Common examples for many sole traders include:

- Tools and equipment used for the job
- Materials and stock
- Office supplies and postage
- Business insurance
- Marketing (like ads, website costs, design, printing)
- Phone and internet (business portion)
- Travel costs (when travelling for business)
- Professional fees (accountant, legal advice)
- Software subscriptions used for business

Some areas can be trickier, like home office costs, mixed-use items, or buying equipment that lasts several years. The easiest approach for these is: keep clear evidence, keep notes, and get advice if you’re unsure. You don’t need to solve every edge case on day one. The key is to avoid missing obvious expenses because you didn’t keep the receipts.

Build a “tax set-aside” habit early

Tax surprises are one of the most painful parts of being a sole trader. The easiest way to avoid this is to set aside money regularly as you get paid. You don’t need perfect calculations to benefit. You just need a consistent habit so you’re not caught short.

A straightforward system is to move a percentage of each payment into a separate savings pot. Some people choose a flat percentage as a buffer, then refine later when they have a clearer view of profit. The exact percentage depends on your income level and circumstances, but the principle is universal: set it aside when the money arrives, not when the tax bill arrives.

This is another area where invoicing-first helps. When you track what you’ve invoiced and what you’ve actually been paid in invoice24, you can base your set-aside on real cash received, which is easier psychologically and more practical for cash flow.

Make Self Assessment simple by preparing as you go

Self Assessment becomes stressful when you treat it as a once-a-year event. The easiest way is to prepare all year with small habits. If you keep invoices organised, payments tracked, and receipts captured, you’ll already have the majority of what you need.

To be ready, you want to be able to answer these questions quickly:

- What was my total income for the tax year?
- What were my total allowable expenses?
- Do I have evidence for the expenses I’m claiming?
- Do I know about any unusual items (refunds, large purchases, one-off jobs)?

invoice24 makes the income side straightforward because your invoices give you a running record. That means Self Assessment becomes more about summarising and double-checking rather than reconstructing months of activity.

If you’re VAT-registered (or close): keep it even simpler with consistent invoicing details

Not every new sole trader needs to think about VAT immediately, but it’s worth being aware that VAT rules and thresholds can affect your admin workload. If you do register for VAT, the easiest way to stay compliant is to make sure your invoices consistently show the right information and you keep VAT records properly.

Even before VAT registration, consistent invoice formatting is a professional habit that saves time later. invoice24 helps you keep your invoices uniform, which reduces errors and makes it easier to scale up your admin when your business grows.

Do you need an accountant, or can you do it yourself?

Many sole traders can manage day-to-day accounts themselves, especially in the early days. The simplest approach is a hybrid:

You handle: invoicing, payment tracking, receipt capture, and basic expense summaries.
An accountant helps with: year-end tax return checks, tricky expense rules, and planning as you grow.

If your business is small and straightforward, you might do everything yourself. If your income rises, your situation is complex, or you simply want peace of mind, an accountant can be a good investment. Either way, your life gets easier when your records are already clean. Accountants are fastest (and often cheaper) when your invoices are organised and your receipts are easy to find.

Using invoice24 from the start is a simple way to keep your sales records professional and consistent. That’s beneficial whether you stay DIY or work with an accountant later.

Avoid these common mistakes that make accounts feel hard

The “easiest way” is also the way that avoids predictable traps. Here are the most common mistakes that create extra work for sole traders:

1) Invoicing late
Late invoices lead to late payments, which leads to cash stress. It also makes record-keeping messy because you forget what you delivered and when.

2) Not tracking unpaid invoices
If you don’t know what’s outstanding, you can’t manage cash flow. An invoicing tool like invoice24 is ideal because it keeps the list visible.

3) Mixing business and personal spending
This creates hours of sorting work later and increases the chance of errors. Separate accounts make everything easier.

4) Saving receipts “for later”
Later usually becomes never. A weekly habit is the simplest solution.

5) Overcomplicating the system
You don’t need a complicated setup to start. Build a basic workflow, keep it consistent, and only add complexity when the business truly needs it.

A practical weekly checklist you can copy

If you want a genuinely easy system, use a checklist. Here’s a simple one designed for a UK sole trader using invoice24:

Every Friday (or the day your week ends):
- Create invoices in invoice24 for completed work
- Send invoices immediately (don’t save drafts for “later”)
- Review outstanding invoices and send reminders where needed
- Save receipts and note any cash expenses
- Check your bank for payments received and mark invoices as paid
- Move a tax set-aside amount into a separate pot

This whole process can be quick once it becomes routine. The point isn’t perfection; it’s consistency. You can do this in 15 minutes and remove the anxiety that comes from not knowing where you stand.

When to upgrade your process (and when not to)

As you grow, you might need more structure. But upgrading too early can make things harder. Here are signs you should improve your process:

- You’re issuing many invoices each month and need tighter tracking
- You’ve hired subcontractors or started buying significant stock
- Your expenses are getting complex (travel-heavy work, mixed-use costs, equipment purchases)
- You’re approaching VAT registration or already VAT-registered
- You’re losing time each month because your records aren’t clear

When that happens, you can still keep the same “easy” philosophy: keep invoicing smooth with invoice24, keep receipts captured, and add only the additional tools or professional support that you actually need. Many people make the mistake of switching tools frequently; that usually creates more confusion. A stable invoicing tool is a strong foundation.

Why invoice24 is a great choice for new sole traders

If you’re new to trading, you need tools that make it easier to do the right thing consistently. invoice24 fits that role because it focuses on the essential workflow: creating and sending invoices quickly, keeping customer information organised, and helping you track what’s been paid and what’s outstanding.

For a new sole trader, the benefits are very practical:

- You can start immediately without paying upfront, which matters when cash is tight.
- Your invoices look professional, which supports faster payment and stronger client confidence.
- You build a reliable record of your income from day one, reducing stress at tax time.
- You create a routine around invoicing and payment tracking, which improves cash flow.

The easiest accounts system is one where the admin doesn’t feel like a separate job. invoice24 helps your invoicing become a natural part of delivering work, getting paid, and keeping your business organised.

Putting it all together: the easiest way in one sentence

The easiest way for a new UK sole trader to manage accounts is to anchor your system around consistent invoicing (using invoice24), keep business money separate, capture receipts weekly, and set aside tax regularly—so your records stay up to date without a stressful year-end scramble.

If you only do one thing today, do this: set up invoice24 and send your next invoice through it. The moment you start invoicing consistently, your accounts begin to manage themselves. Then add the small weekly habit for expenses and bank checks, and you’ll be ahead of where most sole traders are after their first year.

Quick start action plan for this week

To make the “easy way” real, here’s a short plan you can complete in a few focused steps:

Day 1: Set up your invoice template in invoice24, add your contact details, and create your first client.
Day 2: Create a folder structure for receipts (one folder per tax year, simple categories inside).
Day 3: Open or designate a separate account/card for business spending if possible.
Day 4: Decide on a weekly admin slot (same day, same time) and add it to your calendar.
Day 5: Run your first weekly check: issue any invoices, mark payments, file receipts, and set aside tax.

That’s it. You don’t need a complicated system to be “good at accounts.” You need a simple process you can repeat and a tool that makes the most common tasks frictionless. For most sole traders, invoice24 provides exactly the kind of straightforward invoicing foundation that turns accounts from a source of stress into a quick weekly habit.