Accountants in Birmingham

Sole Trader

Small businesses and self employed individuals can rest assured that all of your bases are covered with our Birmingham accountancy services. Whether you are just starting up or have a well established small business, we can give you tax advice and manage all of your accounting needs.

We understand the advantages and disadvantages you face as a Sole Trader.

Advantages of a Sole Trader business:

• You have total control of your business
• You do not have to share your revenue
• You have a certain amount of privacy as your earnings are not public knowledge
• If/when it is time, it is easy to upgrade to a Limited Company.
• You have the ability to offer smaller scale, more specialized services.
• You can enjoy building relationships with your local market
• You have the ability to act quickly in any given situation

The disadvantages of a Sole Trader business:

• Finances can be more of a challenge. You are personally liable for your business and therefore financial institutions are hesitant to lend large sums of money to Sole Traders.
• It is a bit more of a challenge competing with the larger companies because you do not, as a rule, have the capital to take advantage of large wholesale deals that may come your way. Therefore you do not see as much profits per sale as the larger companies.
• You are held personally responsible for all of your business debts. Should your business fail, you risk the chance of losing your personal assets as well.

Is operating a business as a Sole Trader the right choice for you? Talk to our Birmingham Accountants to discuss all of your options. They will make sure you are aware of all of the details and give you advice on the right course of action for your individual situation.