Over the last year more people seem to be making the move to self employed.
There's a number of reasons why this might happen. I've seen situations ranging from people being offered contracting roles from a potential client, or offered a business partnership, right through to employers encouraging their staff to take up the self employed mantle and go out on their own to contract back to their business.
However it might happen, making the move from employee to self employed can be risky but rewarding if you get it right. And whatever the motivation you may need to check out a few things to ensure you're making the right decision.
Why am I really doing this?
A bad day at the office isn't going to be a good enough excuse to go out on your own. List all the reasons why you are making this decision, then critique them.
Then review this again with someone close to you and then a professional. If you're unhappy with the work you do then doing it on your lonesome may not fix the problem. When I'm working through this with people, occasionally, on closer inspection we've decided that it's purely something that can be resolved with their current employer so they've decided to have a chat to them first.
What am I currently earning?
You'll need to do some sums and work out the real value of earnings you're giving up now. This includes taking into account paid holidays, sick leave, KiwiSaver, and other perks like use of computers, tools or vehicles and fuel. You may be surprised about how much you actually earn when these are added back. Working through this exercise will also set the profit figure in your budget for your self employed role.
If you need to invest in large amounts of gear then additionally you'll need to factor in a return on your investment as well.
Jeremy Tauri - Plus Chartered Accountants
Phone: (09) 438 3322
Fax: 438 8455
134 Bank Street, Whangarei
If we had to sum up Brent and the team at Plus CA it would be - humorous, efficient, professional with a real focus on making your money work to its best ability for you...we will continue to deal with them even though we are moving overseas as we know they have our best interests at heart.
Jeremy thank you for your patience, assistance and general chit chat over the years. I would have absolutely no issue in recommending your services to everyone and anyone – in fact, I do.
We recently employed Jeremy Tauri of Plus Chartered Accountants and have been thrilled with the improved service we have received. Jeremy is really approachable and always available to answer queries. At his instigation we have set up quarterly meetings so that we are regularly reviewing our business and avoiding any ‘end of year surprises’.