Fast, effortless and 100% online.
Traditional accounting (also known as “accrual basis” accounting) is a kind of accounting that calculates your profits based on when you send invoices or when you receive them – regardless of whether you actually received or spent money.
The kind of accounting that looks at when you spent or received money (not invoices) is called cash basis accounting instead. It’s much more straightforward, and almost all sole traders use it.
Sign up for important updates, deadline reminders and basic tax hacks sent straight to your inbox.