Contracting 101

1
Contracting 101

• Mark Daunt
• http//datacogs.com

2
Agenda

• My Experience
• Downside
• Upside
• Business Entities
• ABN
• Business Name
• Finding/Keeping Clients
• Bookeeping
• Tax Invoice
• Software
• BAS

3
My Experience

• Fulltime software developer/trainer 94-99
• Moonlighting 1998
• Contractor 1999 Present
• Never used an agency
• Approached clients to determine interest
• More training than dev work
• Had about 4 weeks work from start
• 7 Years later I employ 2 subcontractors
• Now more dev work than training

4
Downside

• No work
• Clients poor at paying
• Clients go broke
• Skills not kept up or become obsolete
• May not have colleagues to bounce ideas off
• Build your own network
• No more paid holidays/super etc
• Usually cant get away with substandard product
• Clients expect a lot may need to deliver to
  unrealistic timelines
• Traveling/work from home

5
Upside

• More money
• Manage your own time
• Choose your projects
• Meet many different client
• Many different situations
• Opportunity to solve real world problems
• Travel
• Work from home

6
Business Entities

• Sole Trader
• Just start trading
• Partnership
• Need joint bank account
• Family Trust
• distribute income at end of financial year
• Company
• More flexibility fixed tax rate on profits
• Can own assets
• Get a good accountant!
• ATO web site www.ato.gov.au

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ABN

• Need to get your GST back
• Register at ATO web site
• Choose quarterly or monthly BAS can change
  after one year so choose wisely
• Some products and services give special rate for
  ABN holders

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Business Name

• Not necessary for Sole traders and Partnership
• Register at fairtrading.qld.gov.au state based
• Costs about 110.00 per year
• Some laws exist about Domain Name registration
• Trade Marks are a separate thing seek legal
  advice

9
Finding Clients

• Be good at what you do and they will come to you.
• Never close communication channels
• Try not to disappoint (good) clients when you are
  busy very difficult in practice

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Bookeeping

• Need something to help you
• Track GST
• Produce invoices
• Timesheets
• Complete BAS
• Common Solutions
• MYOB - www.myob.com
• QuickBooks - http//www.quicken.com.au/
• Excel

11
Questions

• ?