Contractors
Are You Better Off as a Contractor or an Employee? The SLA Review
Are you better off as a contractor or an employee? How does the idea of being your own boss, earning a rate that is worthy of your time and having more control over your future sound?
“Pretty good if you ask me” is what many of our clients say.
Considerations
Things to Keep in Mind
The benefits of being a contractor are numerous. However, there are several considerations and potential hidden costs that are important to weigh up before deciding whether to go out on your own:
- Customers – do you have a base of existing clients to service from day one, or will you be searching for business from the outset?
- Debt – if you have a student loan, mortgage or personal debts, becoming a contractor may impact your ability to cover repayments. It is important to have a clear understanding of your outgoings to determine the amount of income required to live comfortably as your own boss.
- Home ownership – on the other hand, if you’re looking to take out a mortgage in the near future, becoming a contractor may impact your ability to gain lending approval.
- Equipment – do you have the tools and qualifications necessary to begin contracting in your field?
- Levies – have you considered when to register for GST, and how much money to set aside for ACC levies? Have you factored the cost of insurance and other subscriptions into your budgets?
- Budgeting – do you have a clear picture of the setup costs, projected income and expected monthly outgoings?
- Accounting and operating systems – do you have an accounting system, invoicing software and other operational systems established so that you can focus on earning money right away?
Are You Better Off as a Contractor or an Employee? The SLA Review
During this session, one of our experienced advisors will take a close look at where you’re at from a business and accounting perspective, provide an accurate financial picture of your earning potential and offer advice about whether you are likely to be better off making the shift.
Clients often tell us that looking at their plans with a fresh set of eyes helped them to gain a clearer understanding of what needed to be done, and gave them the confidence to successfully make informed decisions.
“The best business decision I have made in the last ten years has been to use the services of Rebecca Stilton. She has been a godsend.”
– Barry Duffield, actor on Spartacus and independent screenwriter
Our intention is to help guide you in the right direction. There is no one correct answer, as every situation is unique and depends on a range of factors. From our breadth and depth of experience in working with both contractors and employees, we have gained a deep understanding of what leads to success on both sides of the fence, and can therefore use our knowledge to support your financial future.
Click here to book a fixed price consultation today – no ongoing commitment (unless you really like what we do!).
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