When it comes to contracting, regardless of the industry you choose to work within, there’s a few points you need to consider before fully committing.
As after all, it’s a big step, moving from full-time employment to being self-employed, where the main draw to clients and customers is you and your skillset.
It can be a huge change for many people, whether it’s the money they’ll be making or the hours they’ll be working. It’s best to take a step back and look at the big picture of what will change and how it’ll change.
Brookson go through a few points of consideration you should take if you’re looking at becoming a contractor.
The first thing everybody looks at is money and is the most common reason people consider making the change. Some people make the move into contracting purely for this reason as generally speaking, contractors will make more than their counterparts in full-time employment.
The difference is, as a full-time employee of a company you receive constant and reliable paychecks every month and you’re able to plan years ahead with your finances. In contracting you’ll receive more for your work but it’s possible you’ll have breaks in-between your jobs and depending on the market, it could last for a considerable time. Requiring you to plan for a considerably longer period and could be more stressful for some people.
It’s best to eye up the market you’re looking to get into as industries differ from others. Check to see if your skills are in high demand in the market, maybe then it’s time to make the change.
A big consideration when thinking of becoming a contractor is job security, something you don’t really have to consider in full-time employment unless you know of business troubles within your company.
Contractors are expected to deliver an instant change when they’re hired, showing off their highly requested skills and providing results that cannot be provided by the current staff. When businesses hire you, they’re looking to access your skillset straight away and want the results that come with them.
Sometimes circumstances are out of your control, where a business doesn’t have the budget to keep you on or must stop the work as they change their mind last minute. This can have serious effects on your income flow and you must be able to adapt and find replacement work quite quickly.
Planning for the future is vital in these instances, having a network of contacts and potential clients on hand just in case work falls through, you have a safety net in place so that you’re not out of pocket for weeks or months at a time.
This may seem like a lot of work and a big change when you’re used to full-time employment. Therefore, it’s advised you seek specialist contractor support from specialist contractor accountants who have the experience to help you through these new processes.
Giving you the time to focus on less strenuous parts of contracting and letting you enjoy the freedom it provides, let a specialist contractor accountant such as Brookson make the whole process that much easier. Ensuring that your taxes are all covered for the end of the tax year and giving you an estimate of your yearly income, a specialist contractor accountant will provide you with the advice you need to make your contracting career a huge success.