| When you are thinking about running your own | | | | related you could find yourself being unable to work |
| bookkeeping service, one of the main questions you | | | | and therefore have no income. This insurance should |
| need to answer is how much you will charge. There | | | | also cover you if you do not have workers |
| are a number of aspects you need to consider when | | | | compensation cover. Contact your insurance agent for |
| working out an hourly rate. This is how I work it out. | | | | a quote and make sure you find out what you will and |
| Firstly, you need to find out the rate you would be paid | | | | won't be covered for. |
| if you were an employee working for someone else. | | | | Now that you have these four figures, you will need to |
| This is your base rate. You then need to think of all the | | | | add the yearly amounts together, divide that by |
| other benefits you would get as an employee that you | | | | fifty-two to get your weekly rate, and then divide that |
| won't get as a contractor. | | | | by 40 to get your hourly rate. This rate is what I would |
| If you live in Australia, you would be receiving | | | | class as "mates rates", the amount you would charge |
| superannuation from your employer on top of your | | | | your friends and family. I then add $5 per hour to this |
| base wage. Add this to your base rate. Make sure | | | | rate for people that I don't know personally. |
| though, that you do put this amount into your super | | | | You now have a rate that is a little more than what |
| when you are working for yourself. Any money that | | | | you would get as an employee. The next step is to |
| you personally put into your super fund is a tax | | | | phone other bookkeepers in your area and find out |
| deduction and the government is also rewarding | | | | what they are charging. If they are charging more than |
| people who pay into their own super by adding to it at | | | | your calculated rate, great! This mean you can |
| the end of each tax year. | | | | increase your rate and remain competitive. If they are |
| Workers compensation also needs to be included in | | | | charging less, you can reduce to your rate to stay |
| your calculation. Although you may be working at the | | | | competitive or keep your rate as it is and rely on |
| business premises, if you re not an employee you will | | | | businesses hiring your for your expertise rather than |
| not be covered by the businesses workers | | | | what you charge. If you reduce your rate below your |
| compensation. It is a simple matter of ringing Work | | | | calculated "mates rate, then you may as well work for |
| cover and they can give you an estimate of what | | | | someone else. |
| your yearly fee would be to be covered. Whether you | | | | You are a professional, so your hourly rate is the |
| decide to take out this cover or not is up to you. | | | | same whether you are doing data entry or taxation. |
| The last real cost you need to consider is income | | | | Think about what your accountant charges. Does he |
| protection insurance. As a contractor, you do not get | | | | have different rates for different levels of accounting? |
| sick pay so if you are in an accident that is not work | | | | I haven't found one yet that does. |