Coping with Inflation as a Sole Trader: Our Practical Suggestions
Recent research from October 2022 revealed that sole traders spend only 55% of their working week on actual work, while the rest is consumed by administrative tasks, finding work, and travel. To boost your bottom line, consider automating repetitive and time-consuming tasks.
Identify the tasks that you’d happily outsource to save precious time. Are you grappling with chasing invoices, finding new clients, or managing taxes? The good news is there are streamlined solutions and AI tools available to take these tasks off your plate completely.
Explore options such as creating a user-friendly booking form on your website, building an automatic sales pipeline in Excel, or partnering with an accounting software company that can politely chase late-paying clients.
Digital Boost offers a range of courses designed to streamline work processes and enhance your productivity.
Claiming all eligible business expenses is crucial for maximizing tax savings. Shockingly, less than half of all sole traders in Aotearoa report claiming all the tax deductions they’re entitled to, leaving potential savings on the table. On average, unclaimed business expenses amounted to $5,611.
Remember that valid business expenses should directly relate to earning income or running your business. However, not every expense will be a valid deduction, and certain deductions may be industry-specific.
To ensure you’re claiming everything you’re entitled to, use resources from the IRD website and consult with an accountant or registered tax agent who can spot potential deductions you might have missed.
Your well-being as a sole trader directly impacts the success of your business. During challenging economic times, it’s tempting to work longer and harder, but this may not be a sustainable strategy. Taking care of your mental health is essential for making sound business decisions.
Create time and space to recharge and avoid burnout. If extra hours are required, find balance by allocating time for relaxation and personal well-being.
Remember, being a sole trader is both challenging and rewarding. Don’t hesitate to seek help from your networks when needed, and never be afraid to ask for assistance.
We’re dedicated to your success, and if you have any questions or need support, feel free to reach out to us.
Wishing you continued success on your entrepreneurial journey!
Your Outside Team
Need a bit of assistance with your business? Contact an Outside Accounting team member today and learn more about our fixed fees. You won’t regret it.
Aside from business consultation, we are business accountants Wellington who offer accounting, bookkeeping, payroll services designed to help you achieve greater financial success.
You can click here to speak to a business, accounting and bookkeeping firm. We will give you a call to know more about your needs. We will explain to you how we can improve your business.
Address: Level 2, 182 Vivian Street,
Te Aro, Wellington 6011, New Zealand
Mail: PO Box 24-457, Wellington 6142
Phone: 04 889 2975
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