Self Paranoia
Advantages Of Self-Employement
Nowaday’s Self-employment is a growing trends in most countries.The self-employement means that a person works on his own,
without any outside employer. He or she does not need to report to a superior, follow orders or undergo year-end evaluation.
In other words, he or she is a freelancer. A freelancer is someone who controls her kind of work, time, energy and money.
many advantages of self-employement :
Personal freedom. One of the exciting facts of being your own boss is being in control of everything. But, be cautious of
making choices and decisions. You might fall into your own traps.
Financial flexibility. Being free from any legal attachments such as contracts, you can opt to grab for better, more
profitable works easily.
disadvantages:
Can be more costly on your part compared to benefits paid by the employer. If you are employed in a company, the employer
carries the burden on payments of basic benefits such as social security services and medical benefits.
Working home-based gives the responsibility to you for paying self employment taxes. Managing your own business entails you
to do the payment tasks and procedures yourself because you don’t have any staff to do it.
Retirement benefits also become the second highest cost. When you get older and lacks the strength to work, do not expect to
receive post-employment benefits.
Managing your money when you work for someone else is easy. Your employer will take care of making sure that all of the
proper taxes and deductions are taken out of your pay check. When you own your own business or are self employed, however,
managing your money becomes quite tricky. Thankfully you don’t have to be a money genius to keep your business afloat. You
also don’t have to be a money genius to make a profit!
The main trick to managing money when you work for yourself is to keep strict records. Those records must be meticulously
organized. The last thing you want is for the government to audit your finances because you’ve misplaced your business lunch
receipt! Trust us, things like that do happen!
Here are some hints to help you manage your business money and make sure that everything gets taken care of correctly:
1. Make sure that, with every sale you make, some of the profit gets put aside. You are not exempt from government taxes just
because you work for yourself. The truth is that your taxes are often higher. This is because, unlike when you worked for
someone else, you are solely responsible for paying your taxes to the government. As an employee, your boss took care of some
of that financial burden for you. Set aside a set percentage of every sale you make so that, when it comes time to pay your
taxes every year, you won’t be scrambling to find the money to keep the government happy.
2. If math is not your strongest skill, you should definitely spend some extra money and hire a proper accountant. Having a
skilled accountant will be a godsend if you do not have experience with business finance. When you hire an accountant you can
trust, you simply hand everything over to them and they take care of making sure that your profits get to where they need to
go-distributors, employees, the government, your bank account, etc.
3. Write down everything! Keep everything! There is no such thing as a pack rat when it comes to money and business. Keep
every receipt; keep a copy of every invoice. This is not paranoia. You want to have a physical record of all money coming
into your business and all money leaving your business. Every last pound must be accounted for. Keep all of your receipts and
invoices in a central location. File them by date so that they can be quickly located. This will save you quite a bit of time
searching later on when somebody wants to know where you and a client had lunch on a certain day.
To be honest, keeping track of your money when you own your own business or are self employed is not hard, it is simply time
consuming. If you take the time to set up your records properly when you open shop, you will save yourself hours of headaches
later on!
About the Author
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One Self – Paranoid (Instrumental)
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