The thought of going it alone can seem daunting for some, but with the several benefits of contracting it’s no surprise that so many people are turning to contracting. However, there should be a few factors for you to consider prior to leaving your day job.
In this blog post, Gorilla Accounting will be looking at 3 factors you should consider when starting contracting.
You’re Your Own Boss
One of the main reasons to become a contractor is to be your own boss. You are able to dictate how and when tasks need to be completed to reach set deadlines. As a result, you may experience more creative freedom that you may not have the benefit of with full time employment.
You will have the option to decide which contracts you take on, for example, if there’s new challenges to get your teeth stuck into. Taking control of your future ensures that you can do so at your own pace. Increased flexibility is enough for some to persuade them to start contracting.
Office politics will become less of an issue as you will be working in one place and at your own leisure. For example, if you begin to work somewhere and you don’t like it, once you have completed your contract you will be free to leave and work elsewhere. In addition, you may be able to experience flexible working.
However, being your own boss can have its drawbacks. The switch from full time employment now means that you’re in charge of the work that comes in. As a result, you will need to maintain positive connections to ensure that you have constant work throughout each year.
Typically, as a contractor, you will not experience employee benefits such as sick pay, holiday entitlement or paid training. These are all factors which you will need to take into consideration as this will all be on yourself.
Income
In the majority of cases, contractors can earn more money than those who are in full time employment. Depending on what skills are in demand at one time, there will be a possibility of an increase in pay. However, you should remember that it is completely dependent on your own skill set and the industry that you are in.
As mentioned above, you are also in charge of how much work comes in and if you are not able to support yourself with new work, you will struggle as a contractor.
Accountant
In a previous blog post, Gorilla have expressed the importance of choosing an accountant who understands your needs.
It’s important to find an accountant who can offer you the best deal and ensure that support can be provided should you face any problems. In the vast majority of cases, a contractor accountant would be able to provide an ideal solution. A contractor accountant will already have a tailored service to suit your needs as they have already dealt with other contractors.
To read our thoughts on choosing an accountant, please click here to read more.
For more information on becoming a contractor, why not give our New Business Team a call? You can reach us on 0330 024 0406, alternatively you can drop us an email on info@gorillaaccounting.com
