Sole Traders and set of accounts

SussexAccountancy

Hi

A pretty basic question - At what level should sole traders be recommended that they pay for a set of accounts to be produced - for the sole purpose of being organised (ie: not for mortgage or VAT registered requirements).

I have a new client (sole trader) with turnover of around £25k who pays to have set of accounts because she had mortgage application a few years ago. She is now asking whether she could move over to me, and at the same time go back to self assessment only, as she doesn't really need P&L/BS etc and would save her a fair bit of money.


Any thoughts on the above?

Thanks

T.C.

I would recommend that a set of accounts is always prepared! Why not? Just a P & L is probably enough for a small sole trader; there may not be enough information for a BS. It doesn't take much longer to prepare this when you need the information for the TR anyway. Hope that helps.

Suejw

I agree with T.C, I always prepare at least a P&L for my sole traders, as stated, once you have a TB it is only another step to prepare a P&L