confoo presentation 2014 on freelancing 101
DESCRIPTION
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.TRANSCRIPT
Freelancing in IT 101Martin Nicolas HandfieldStratWeb Consulting Services Inc.
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.
Disclaimer
Not an accountant;
Not a lawyer.
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;
What’s in it for me?Flexible Schedule;
Project variety;
No hierarchy – client-provider relation;
Your own tools;
$$$
Freedom (Be Your Own Boss)
What’s in it for them?
Compensate for lack of internal expertise;
Staff up in a crunch period;
Different budget category (Capex versus Opex);
How does it work?
Determine hourly rate (yearly salary/1900 +25%);
Find client;
Fill in monthly timesheet;
Invoice client;
Repeat.
Who can help me?
Accountant/Fiscalist;
Banker;
Insurance Broker
Financial Planner
Work Provider / Headhunter
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)
Corporation or Individual Enterprise?Major clients prefer corporations
More expensive/complicated but…Limited Responsibility (Investment)
Tax deductions (small enterprises)
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
Go to the Bank
Get a business account
Business credit card / credit margin
The banker is your friend. Really.
Insurances Disability Insurance
Compulsory Prescription Drugs Insurance
Government;
Private (Professional Order)
Life Insurance
Healthcare insurance
Profesional Responsibility Insurance
How to find gigs
Clear Mission Statement;
Solid LinkedIn Profile;
Networking, networking, networking;
2-3 Solid Job Providers
The Consultant Etiquette
Up and running;
No politics please;
Dress Code;
Mingle!
The Nomad Lifestyle
Online Resources
AQIII (www.aqiii.org);
Taxation Reference for self-employed (http://www.revenuquebec.ca/en/sepf/publications/in/in-300.aspx)
Espresso Jobs (http://www.espresso-jobs.com);
Infopresse Jobs (https://jobs.infopresse.com);
Suggested Further Reading
Sample Timesheet / Invoice
Thank you for your attention
Questions?