confoo presentation 2014 on freelancing 101

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Freelancing in IT 101 Martin Nicolas Handfield StratWeb Consulting Services Inc.

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In the current market, freelancing has become a very appealing option for many IT workers, conscious about their freedom, professional development, balancing work and family life, and quite simply making the most out of life. Many options are now available, ranging from full-time consulting through an agency, to maintaining a portfolio of clients and a "nomad" lifestyle. This conference will explore those various options and what they entail.

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Page 1: Confoo presentation 2014 on Freelancing 101

Freelancing in IT 101Martin Nicolas HandfieldStratWeb Consulting Services Inc.

Page 2: Confoo presentation 2014 on Freelancing 101

Who am I? – Renaissance Man

1.a cultured man of the Renaissance who was knowledgeable, educated, or proficient in a wide range of fields.2.( sometimes lowercase ) a present-day man who has acquired profound knowledge or proficiency in more than one field.

Page 3: Confoo presentation 2014 on Freelancing 101

Disclaimer

Not an accountant;

Not a lawyer.

Page 4: Confoo presentation 2014 on Freelancing 101

Someone who works for someone else in exchange for remuneration, according to a contract, without being an employee or receiving a salary.

10% of the available IT workforce;

Page 5: Confoo presentation 2014 on Freelancing 101

What’s in it for me?Flexible Schedule;

Project variety;

No hierarchy – client-provider relation;

Your own tools;

$$$

Freedom (Be Your Own Boss)

Page 6: Confoo presentation 2014 on Freelancing 101

What’s in it for them?

Compensate for lack of internal expertise;

Staff up in a crunch period;

Different budget category (Capex versus Opex);

Page 7: Confoo presentation 2014 on Freelancing 101

How does it work?

Determine hourly rate (yearly salary/1900 +25%);

Find client;

Fill in monthly timesheet;

Invoice client;

Repeat.

Page 8: Confoo presentation 2014 on Freelancing 101

Who can help me?

Accountant/Fiscalist;

Banker;

Insurance Broker

Financial Planner

Work Provider / Headhunter

Page 9: Confoo presentation 2014 on Freelancing 101

Accounting 101Book keeping & Invoicing (Software)

Admissible expenses (keep all receipts)Promotion/advertisement

Office supplies

Banking fees

Meals & Representation

Vehicule expenses

Congress and Events (max 2)

Accounting and Legal Fees

Rent

Phone/communication fees

Contractual expenses

Amortization (Capital Expenditures)

Taxes (GST & QST)

Page 10: Confoo presentation 2014 on Freelancing 101

Corporation or Individual Enterprise?Major clients prefer corporations

More expensive/complicated but…Limited Responsibility (Investment)

Tax deductions (small enterprises)

Page 11: Confoo presentation 2014 on Freelancing 101

Dividends or Salary?Salary Advantages

Can contribute to RRSP

Canada Pension Plan (CPP)

Salary is a tax deduction

Eligible to Disability Insurance

Salary DisadvantagesSalary 100% taxable

Paying CPP twice (as employer/employee)

Extra paperwork (Payroll & T4 slips)

Not so flexible

Dividends AdvantagesLower tax rate (500K)

No CPP – Saving money

Relatively Simple (Check, Update Minute Books, Director Resolution)

Dividends DisadvantagesLess CPP when you retire

Can’t contribute to RRSP

Page 12: Confoo presentation 2014 on Freelancing 101

Go to the Bank

Get a business account

Business credit card / credit margin

The banker is your friend. Really.

Page 13: Confoo presentation 2014 on Freelancing 101

Insurances Disability Insurance

Compulsory Prescription Drugs Insurance

Government;

Private (Professional Order)

Life Insurance

Healthcare insurance

Profesional Responsibility Insurance

Page 14: Confoo presentation 2014 on Freelancing 101

How to find gigs

Clear Mission Statement;

Solid LinkedIn Profile;

Networking, networking, networking;

2-3 Solid Job Providers

Page 15: Confoo presentation 2014 on Freelancing 101

The Consultant Etiquette

Up and running;

No politics please;

Dress Code;

Mingle!

Page 16: Confoo presentation 2014 on Freelancing 101

The Nomad Lifestyle

Page 18: Confoo presentation 2014 on Freelancing 101

Suggested Further Reading

Page 19: Confoo presentation 2014 on Freelancing 101

Sample Timesheet / Invoice

Page 20: Confoo presentation 2014 on Freelancing 101

Thank you for your attention

Questions?