As an independent contractor you have a lot of freedom and flexibility, and you also have the potential to earn a lot of money. We take a look at the top 5 reasons to become a contractor.
What is an independent contractor?
Being an independent contractor simply means you’re contracted by an individual or a company to provide services to them, usually over a short period or for the duration of a project. An independent contractor is sometimes called a consultant, freelancer or self-employed. You can be a contractor in any field, from law to copywriting, programming, designing, construction and more.
As a contractor you get to decide when and where you work. The individual or company you work for can only set terms for the end result, not how you achieve that result. You also have a chance to negotiate your pay and other benefits per contract.
5 benefits to being an independent contractor
1. Flexibility and freedom that few can dream of
As an independent contractor you’re your own boss. You can set your own hours and organize your week how you want.
You also don’t have to spend time commuting to an office every day, and you don’t have to report to a manager or to your colleagues in the way an employee does. All that can make it easier to maintain a good work-life balance.
This also means you can work from home, from a café or even on the beach. As long as you deliver as per the contract, you have amazing flexibility and freedom.
2. Step into a variety of roles
As an independent contractor, you’re not tied down to one organization. You can move between companies and even roles within that company. Having to understand different companies, roles, projects, and problems will make you more experienced and help you grow as a contractor.
Since you choose what contracts you sign, you can focus on projects that excite you.The variety is one of the benefits of this type of work. As time goes on you can sign several contracts with the same company or move on to other projects that catch your interest.
3. Benefit from tax deductions
As an independent contractor you can claim tax deductions for any expenses you have as part of doing your job. This can include purchasing equipment such as a laptop, monitor or work phone, or costs that you have getting to an in-person meeting, for example fuel or train tickets. Just remember to save all the receipts, as you have to document the expenses.
If you’re unsure about what tax deductions you can claim, you should speak to an accountant.
4. Full financial control
Since you run your own business, you get to keep all the profits from your work. That can be a very rewarding feeling. You can also choose what to do with your money: Do you want to invest it back in your work, for example by getting a better laptop or going on a course, or do you want to put it in a savings account?
5. The ability to earn more money
If you work hard and achieve results, you have the chance to make more money than an employee would. If you earn a good reputation, you can get more clients by word-of-mouth. You’ll then have the chance to choose the most profitable offer, if that’s what you want.
Additionally, businesses might be willing to pay more to hire you for a short-term than they would for an employee. That’s because an employee equals long-term commitment, health benefits and more.
Save money: Send invoices for free
While there are many benefits to being an independent contractor, you also have to remember that you’re not guaranteed a fixed salary. Your income can vary from month to month, especially as you’re starting out.
To save money, you should keep your overhead low and reduce costs where you can. One way to save money is to use free invoice software to send invoices to your clients.
With invoice software you can make professional and consistent invoices in minutes. Your clients and services are saved and can be added to your next invoice with the click of a button. You’ll also get notified if you need to follow up with any of your clients in order to get paid.
See also: How to send an invoice
