How to Set Up Xero for Sole Traders (MTD Ready)

If you're a sole trader preparing for Making Tax Digital (MTD), setting up your accounting software properly is essential. In this video I walk through how to set up Xero for a sole trader step by step, so your records are ready for Making Tax Digital for Income Tax (MTD ITSA). We cover the key parts of setting up Xero correctly, including: • Connecting your bank feed • Setting up your invoice layout and logo • Where to enter your bank details for payments • How to organise income and expenses • How to keep your records ready for MTD submissions If you get your setup right from the beginning, managing your accounts and preparing for MTD becomes much easier. Instead of struggling with bookkeeping at the end of the quarter, you can keep everything organised as you go. I’ve helped hundreds of businesses set up Xero systems, and I also run my own businesses using Xero, so in this video I show you the simple approach I recommend for sole traders.