When you’re just starting out, it’s only you in the business. As Dave Ramsey once said, “You’re the CEO- the Chief Everything Officer!”
Then, your business starts to grow, and you realize that you can’t do everything by yourself, but you don’t make enough to justify an “employee”. What should you do?
Hire a Contractor!
You can outsource practically any aspect of your business- marketing, bookkeeping, fulfilling orders, sales, taxes, social media, etc.
The great thing about hiring contractors is that there are less rules and obligations from the government. They will need to fill out a W9 form for you, and at year end, you will need to file a 1099 for them if they provided services exceeding $600 for the year. (There are several nuances to this, so always check!) They are responsible for paying taxes in to the government, so you don’t have to worry about withholding anything and paying in for them yourself.
Also, this is terrific for people who don’t have 40 hours of work to offer someone in a week. Contractors usually serve multiple clients at once, so they would be willing to take on only a couple hours a week in order to help you out!
Personal Testimony
At this moment in my business, I pay three subcontractors to help me with my clients’ books. I also plan on outsourcing my marketing, sales, and some admin work to contractors this year. This way, my business can continue to grow beyond anything I could have done on my own.
Let’s say you pay a bookkeeper $425/month to do your bookkeeping. That’s only $5,100/year! That’s way cheaper than you could ever hire an employee for!
Ready to outsource your bookkeeping to a contractor?
Get a FREE Review of Your Books!