Laura Dodson - Organized Bookkeeping for Independent Contractors: QuickBooks 2013

An IndependentContractor is a person or a small company that provides services to otherpeople, businesses or non-profits. Typically, an independent contractor is ahighly skilled professional whose skills are in high demand. However, theworker finds it more profitable to be a hired gun for specific projects thanthat has a short term time span. They often find more satisfaction in theircareer if they have a variety of projects.

Delicious andtempting dreams of endless mounds of money do tempt some people to open abusiness. However, 50% of new businesses close in a year. Before putting downa deposit on that new yacht, its best to be prepared with the basics ofrunning a business.

Some changesfrom being an employee:

Benefits arenot covered by an employer: Medical Insurance, Liability Insurance andRetirement Account allocations are new expenses. Make sure you research these items;it can be more expensive that you think to purchase medical insurance for afamily of five.

In the futureyou will have to purchase your own tools, computers and other officeequipment. This may include a business website, internet connections, suitablechairs, and other things that previously been provided by an employer.

Work placeconsiderations: Where will you be working from?

A CoffeeShop? Most people start here, but remember, that electrical supplies arelimited, its expected that you continue to purchase food during the day, andnot all coffee houses have comfortable chairs.

At thebusiness that hired your company? This has some benefits of lower costs, beingon site, and building a relationship with the business owner. However, somehave reported that their schedule becomes less flexible, they are treated likean employee, and they receive constant interruptions.

At your homeoffice? Working from home can have great benefits. However, some havereported that their social circle shrinks and they need a separate place tohang their hat.

Renting asmall office? There are traditional offices for space as well as day rentalsof office space in business accelerators. Try each one out and see what fitsyour work style. Ive seen everything from quiet cubes with acres of quiet toraucous rooms of desks where people are two or less feet from each other.

Chaostheory: My experience is the independent contractor faces more uncertaintythan employees. Usually they are the first to be hired or fired. Their highercompensation amounts can attract the red pen of the CFOs budget cutting itemat a moments glance. It pays to be prepared and ready to act.