Sole Trader Bookkeeping Basics: Set Up a Simple System

You are a new sole trader and your accounts are a shoebox of receipts. This designs a plain, practical system around your trade and turnover: cash or accruals basis, what to record, and tools that fit what you already use. The point is a January with no panic, because the return mostly writes itself.

I am a new UK sole trader in the {TRADE_OR_PROFESSION} industry and I need to set up a basic bookkeeping system that will make completing my Self-Assessment tax return straightforward. My estimated annual turnover is £{ANNUAL_TURNOVER}. I currently use {CURRENT_TOOLS} to manage my finances. Design a simple, practical bookkeeping system for me that covers: which accounting basis to use (cash or accruals) and which suits my situation, what records HMRC requires me to keep and for how long, a recommended spreadsheet or app-based approach with column headings or categories, how to handle receipts and invoices, how to record both income and expenses correctly, and how to reconcile my records with my bank statements monthly. The system must be manageable without an accountant.