confoo presentation 2014 on freelancing 101

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?