Categorising transactions for tax is essentially your bookkeeping, and good bookkeeping is critical to making sure you pay the right amount of tax.
Depending on your plan, each month you get a free allowance for the number of transactions you can categorise for tax (we do this automatically for you if you have a business account connected to the app). This includes both income and expenses.
Cash accounting is an accounting method in which revenues and expenses are recorded when cash is received and paid, respectively. This is best for the customer in terms of cash flow.
Sole traders can connect their personal bank or current accounts to Coconut and begin to separate their business and personal transactions.
Coconut is designed specifically for sole traders. Designed to give you a view of how your business is performing, help you work out how much tax you owe and track income and expenses. If you want to spend more time focusing on your business and not your accounting, Coconut is for you.
You can connect bank accounts and credit cards from over 25 UK providers. Take a look at the full list here.
You can connect as many accounts as you like to Coconut. Find out how to connect an account here.