Working as a contractor

As contractor accountants in Manchester, we are well aware that working as a contractor can be quite tricky.

Whatever business you are in, it pays to get your business organised correctly right from the start. So, before you take on any work you should ensure that your accounting process is in order by:

  • Incorporating Your Business – If you are a small business, and you incorporate yourself, this gives you more legal protection in the long run. There are various ways you can incorporate yourself, though – you could be a sole trader, a limited company or a partnership, and your contractor accountant will be able to advise you on which is best for you.
  • Hire a Bookkeeper and a contractor accountant – These two roles are quite different. A bookkeeper will manage your day-to-day accounts for you, and process your expenses, bills and invoices. An accountant, on the other hand, will help you with the structure of your business and advise you on tax related issues. It may seem like a lot of money to hire both these services, but they will actually save you money in the long run.
  • Get Insurance – You may not work in a dangerous industry to be in, but still you should ensure that you have specialist insurance which covers you from a legal and physical perspective in case anything does go wrong.

One of the most important thing to remember is that dealing with the numbers side of your business should be part of your workflow and something that you regularly do. You need some good accounting software which you can update at least once a week with cash flow, expenses, employee information and invoices. If you fall behind in your accounts, it can be really hard to get on top of them again as construction is such a fast-moving industry.

If you work in for yourself and need some help with construction accounting, then please give us a call on 0161 456 9666 or drop us an email to sarah@in-accountancy.co.uk.

 

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