The success you have worked so hard for has finally happened. Now you are overwhelmed by the sheer amount of paperwork and number of administrative tasks that have fallen into your lap. As work increases, so do your administrative responsibilities. You do not have to handle everything alone. Independent contractors and freelancers do have an alternative. An umbrella company provides many of the benefits of a standard employer while retaining your independence.
Types of help available
The one thing you lose when becoming your own boss is an employer. Suddenly, you are responsible for all of the expenses, billing, insurance, accounting and pensions, just to name a few things. An umbrella company provides all the benefits of an employer, yet you get to choose when you work and which clients you take. Instead of handling invoicing yourself, you send all of your client information and time sheets to your ‘employer’. They in turn invoice all of your clients for you.
All tax and NI contributions are handled before you are paid. This prevents calculating your own tax obligations and the large tax bill at the end of year. Since the IRS considers you an employee, you also avoid self-employed tax obligations, meaning a larger pay check overall.
One common query from independent contractors is which expenses are tax deductible. The umbrella company sets an expense policy. You report your expenses, and taxes are handled accordingly. You are also compensated when you are paid.
Yet another issue the self-employed have to deal with is finding affordable insurance. Your employer handles all insurance for you. As with a normal employer, insurance is provided company wide. When using services from umbrella companies, insurance is yet another benefit.
Focus on your business
Managing paperwork, hiring an accountant and organizing your finances takes hours and sometimes days out of your schedule. This is time you could be putting back into your business. Instead of drawing up invoices, you can focus on talking to new clients, responding to questions, and providing the unsurpassed customer service that helps your company to continue to grow.
When you are so focused on the administrative side, you may miss opportunities for growth. Perhaps a new location for your office would greatly increase your profits, but you miss out because you were trying to calculate the percentage of taxes to take out of your weekly pay. A successful business requires help. Someone needs to focus on the business itself while someone else focuses on the administrative side. Instead of hiring employees or accountants to do this for you, consider using an umbrella company. All you have to worry about is sending in client details, time sheets and expenses. They handle the rest.
Growing a business is hard enough. You should not lose focus simply because you are trying to keep on top of the day-to-day paperwork. Now you can continue to expand while earning a larger paycheck. You have fewer worries and can give your attention back to your job and your clients. Growth is a time to celebrate, not to try to find a way to cope.