3 Money Tips for Subcontractors & the Self-Employed

The future is here, and it’s unlike anything we’ve ever seen in the workplace.

Remote work.

Skilled contractors.

Independent consultants.


As the workplace tightens its budgets in 2016 in the face of North America’s dwindling oil production, companies are going to look for creative new ways to reduce overhead costs while maximizing their business interests.

What does that mean for you?

If you ever thought about starting your own business or joining the sub-contracting world, now might be a good time to think about it seriously. Technological advancements and online work have taken a quantum leap forward in the past three years, and if the trend continues, more people will soon be reaping the benefits of working for themselves.

So why doesn’t everybody do it then?

Well, working for yourself isn’t without risks. If you’re already working remotely or on a for-hire basis, then chances are you’ve made some mistakes. And nothing hurts more than a screw-up involving money, be it yours or a client’s. A sub-contractor who makes an error doesn’t have a corporate support structure to back them up and help fix the problem.

You’re on your own.

With that in mind, here are 3 tips to adopt this year to keep your finances healthy and, hopefully, finish the year with a bit more than you start with.


1. Save for a Rainy Day

If there’s one thing we’ve learned working in the mortgage and loan business for the past couple decades, it’s that things happen. Cars break down, homes break down, and yes, people break down too. We can help you get back on your feet, but we always recommend keeping a rainy day fund in case emergency strikes.

Besides, we’d rather help you with funds to start or grow your business anyways.

You’ll also want to start thinking about retirement and how your business will help you get there. RSP’s, investments and TFSA’s are a good idea to start saving for the future.


2. Pay Your Taxes Immediately

Watching the money roll in when you own your business is a beautiful thing. Unlike your employed friends, you aren’t taxed before the cheques are cashed.

However, you still need to pay taxes. Sorry, that’s life!

Paying taxes after the first year is a significant wakeup call for a lot of fresh business owners, particularly if they’ve grown accustomed to being paid by an employer. The worst thing you can do is put off your taxes, because as a business owner, your expenses won’t stop in April.

After the first year, you’ll more than likely start paying taxes early in instalments, so the payment plan is built in.


3. Find an Experienced Accountant

When you run your own business, it can be difficult to find peers to talk to who are in the same situation. You’re going to be so busy, after all, working on your business.

You know who will have good advice? An experienced accountant. They can help you determine what you can claim and what’s a write-off, and they can help you maximize your income in the future.

Even though you’ve decided to strike out into the self-employment world doesn’t mean you have to do it by yourself.

“Organizations really aren’t companies, they’re like networks of teams. Even big companies are being reorganized like this.”

That’s Rich Pearson in an interview with Fast Company. Where do you fit into the workplace? Are your skills best used by spreading out to multiple companies?

If so, congratulations! Operating your own business is a big challenge, but with an organized financial plan, you can make your business work for you, instead of the other way around.

Need help getting your company off the ground? We can help with a small business loan. Contact us ->