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lynda
Community Champion

First-time consultant paid via 1099- need some advice

@Rustler

 

In my mind, this software is for a specific market.  The freelancer.  The hairstylist.  The yoga teacher.  :smileyhappy: Etc.  It is perfect for those business owners who don't differentiate between personal and business accounts.  It is easy to use.  Great for that new business owner who is starting out and wants to stay organized, has to track mileage, invoice online. 

 

Is it for every sole proprietor? No.  But there is other software that is.   In all of your examples that won't work, I would advise the client to not pick QBSE.  And like all of the new products Intuit rolls out, they get better with time.  They just keep adding to it.   I logged into my QBSE account this week and saw some new features that I like.  That is what I love about the cloud technology.  

 

 

 

By the way, I had to google search "hoogalators".   LOL

Flyer
Level 2

First-time consultant paid via 1099- need some advice

Oh cool, I guess you call Denver home too!  Well, I'm now in a bit of a pickle.  I interviewed with the Denver Partner who heads this office.  It was very informal...more of a chat and he hardly asked me any work questions.  At the end of the 45 mins, he said he wanted me on board and was going to ask HR to make me an offer.  It sort of scared me, as odd as that sounds.  I have a friend who works there and so I'm being cautious.  

 

The upside- good money and okay benefits (don't have a formal offer yet) and great on the resume, as any Big Four would be.

 

The downside- 100% travel (mostly west coast) and I'd also be giving up my weekday early and late bike rides (I am a cyclist) and be away from my wife and dog.  It would probably also mean long hours most days.  Fridays- I'm home and most go to the downtown office to network etc.   

 

The other small company already ordered me a new Mac and sent it to me.  If I reject them, I burn that bridge obviously.  If I reject this big firm, maybe my friend looks bad and that door is probably forever closed too.  As I said, I'm in a bit of a pickle.  Besides losing all my stock options, I'm out of severance too so I cannot wait too too long.  

 

Sorry- this post is a bit of a tangent.  I'm primarily just thinking aloud, though I know many of you have lots of great experience so I'm sharing all this here.  

EmilyCowan
Level 7

First-time consultant paid via 1099- need some advice

Hey @Flyer - thanks for the update! Regardless of your current "pickle" it must feel great to be in this position right now, with an offer from a top-ranked firm. Losing your job can be a massively confidence-sapping experience, especially when you derive a lot of personal pride from your job performance (LOL, ask me how I know).

 

Like @Jlwilkins and @DJayne, it wasn't your choice to pick up contract work. It's the thing that's paying the bills for the moment until the next job opportunity comes around. So do you take the "meh" job with the big company (financial security and an awesome resume builder but crap commute and too much travel away from family), or do you take the "me" job (flexible lifestyle and more time with bicycle, wife, and dog, but financial uncertainty and the constant hustle to find more clients). One one hand, you've got a friend who may have gone out on a limb for you, and on the other you've got a six-month contract and loaner computer from a client who hired you in good faith.

 

Are you with me? 'Cause I'm about to change the subject.

 

Why do some people choose to "pivot" and work for themselves, despite the pressure, the stress, and the late nights wondering if the decisions we're making are the right ones?

 

Some of us left a sweet corporate job because they wanted more control over their professional destiny. @TheDotConnector found  his ideal business partner at a startup branding firm. @CoherentCreativ is bringing his visual branding skills from the Pepsis of the world to the mom-and-pop shops. @lweins left his PR gig at Nike to open his own public relations firm.

 

Some of us run small businesses that provide valuable, necessary services in our local communities. @Thehvacguys just earned "Entrepreneur of the Year" from her local chamber of commerce (congrats, Ana!). @TimThePainter  thinks QuickBooks is awesome because it saves time on the accounting side so he can do that actual work of commercial and residential painting.

 

And some of us feel called to make and create. @jmisunas assembles gorgeous boxes of unique goods from all over the country. @Jennie designed a reusable garment bag made from recycled materials. @cruberti is bringing her own formulation of hair care products to market. Steve Lawrence is filling an artisanal-chocolate-shaped hole in the universe with his amazing confections, and I'm not just saying that because I ate the whole box.

 

A lot of us here in QB Community are - no surprise - bookkeepers and accountants, and many have chosen self-employment. @lynda loves the lifestyle of being her own boss, doing bookkeeping by day and teaching yoga classes at night. @Pen just launched an accounting business with a close friend. @Sangeethmathew left his employer this past January to set up his own shop. And @Peter_G_Stone is seriously considering it, I think!!

 

Long story short, none of us is doing what we do for the same reasons, but we're all doing what we do for very strong reasons. What do you feel strongly about right now? What's driving you?

 

QB Community members, what's driving you these days? Is it the same thing that inspired you to "pivot" in the first place?

Peter_G_Stone
Level 3

First-time consultant paid via 1099- need some advice

@EmilyCowan, I've been in a rut lately, but yesterday a wonderful thing happened in this community; I owned the fact that I'm in a rut and other people helped get me out of it with their advice and words of encouragement! I felt like a brand new person coming into the office today :smileyvery-happy:

I used to work in management. Absolutely HATED my job, and could not stand going to work everyday. The solid pay and benefit package means nothing when you can't stand what you do day in and day out. So what motivates me? Simple. Happiness, success, and flexibility.

I want to be happy in what I do to make a living. It should not be a "job" to get out of bed in the morning. We all should be excited for the day and be ready to enthusiastically seize any and all opportunities the day provides. 

Likewise, I want to succeed in building a family business. I work for my father and it is exciting to be able to learn from him and discuss ways to grow this firm. I cherish the time we have collaborating together because he really does not need to be doing this, but he is passionate about the work we do and building something together. That is infectious! I also truly like working with small businesses and entrepreneurs and doing everything in my power to help them succeed! It is very rewarding on a personal and relational level.  Flexibility is also a huge motivator. I love for the most part being my own boss and making my own schedule. I love nature and live somewhere I can enjoy nature daily, so it is amazing to be able to work unconventional hours or take extended breaks if I am able to. I never want to lose that flexibility!

Those are 3 of my main motivators. I would love to continue on with others, but for now it is time to focus, commit, succeed (great mantra). What motivates you @EmilyCowan?

 

Flyer
Level 2

First-time consultant paid via 1099- need some advice

@Peter_G_Stone- thanks for sharing your experience!  Great one, and I can relate to your desire to be near nature since I am the same way.  I take deep backcountry forays a lot, seeking nature and some solitude.  It is incredible.  

 

@EmilyCowan Your insight is interesting and awakening.  I think my head is still not straight because of recent events where I lost most of my retirement options.  For me, the best way to stabilize is to learn from people, listen to others, take knowledge from their experiences, and that helps not get into a daily rut.  I also support my aging parents so I feel like I need to quickly get back to making money.   They don't know about my situation...that will stress them too much.  I truly wish I could start a fix-and-flip business with a couple of trusted friends but one just went through a divorce that wrecked him and the other...well, he has become a bit crazy post his divorce and spends all his time working or chasing his 8th girlfriend, who is the 8th "the one".  So I better stay away.  :)

 

I'm sure my head is not exactly in the right place since confusion abounds but I am slowly getting more focused.  My few friends are of no help since half say to go one way and the other half, tell me to go the other way.  I do know that running your own business is the way to flexibility and satisfaction but in my new financial condition, I do not have the few hundred thousand it takes to comfortably do a proper house flip or go in with someone on a small setup like a ski/bike shop or "antique" shop (I'm talking about cool stuff from Myanmar, Tibet, Nepal, Vietnam, etc.).  That was my line of thinking for 2020...till we got shut down.  

 

 Before I forget and before I keep rambling on, I wish to thank you all for posting here, and making me feel like there are intelligent and compassionate people who are so willing to help.   -Neil

 

 

EmilyCowan
Level 7

First-time consultant paid via 1099- need some advice


@Peter_G_Stone wrote:

@EmilyCowan, I've been in a rut lately, but yesterday a wonderful thing happened in this community; I owned the fact that I'm in a rut and other people helped get me out of it with their advice and words of encouragement! I felt like a brand new person coming into the office today :smileyvery-happy:

 


 

That's awesome to hear, @Peter_G_Stone! Yesterday's Momentum to $1 Million office hours was one of my all-time faves. (@Anonymous, are you hearing this??)

 

It sounds like you and I are totally on the same wavelength in terms of motivations. I'm lucky enough to have a contract job that pays the bill ("success" in my book) and enables me to work from home so I can pick up my kids from school/camp in the afternoons. I can go for runs in the morning or afternoon depending on the weather, or grocery shop when it's totally dead at the supermarket. It's all about structuring your time, not "butt in seat." Flexibility - so huge!

 

What a great relationship you have with your dad - lots of mutual personal and professional respect. That, to me, sounds like a whole lotta happiness! Enjoying the people you work with is key to enjoying your job. (My team members here at QB Community totally rock, and it's a blast working with them, so I'm gonna give them all a shoutout right now - @DerekRothGordon @Anonymous @Anonymous, @LeslieBarber @LisaNullar @SarahGonzales @ShanaNiederman @WillowOlder!!!)

 

I might also add that this community-hosting gig is a BLAST. I come from a writing background, but I'm finding that I much more enjoy writing back and forth in conversation with people than writing for publication. Who knew?

 

Thanks so much for your thoughtful posts, Peter. It's been a real pleasure getting to know you better :smileyhappy:

EmilyCowan
Level 7

First-time consultant paid via 1099- need some advice

Holy smokes, Neil (@Flyer) - you do have a lot on your plate. It sounds like finances and planning for retirement are quite understandably a driving force right now, and it may well be that taking the Big 4 job is the right choice for you right now. If you do take them up on their offer, will there be a long-term contract involved? Do you get the sense that the company needs an answer from you right away, given that you had such a casual meet and greet with little discussion of actual job function? How much leeway do you have to marshal your forces before you need to decide one way or the other?

lynda
Community Champion

First-time consultant paid via 1099- need some advice

@EmilyCowan What is driving me these days is this fantastic economy and business growth! I love helping small businesses. The past few weeks I have had quite a few leads from the Find-a-ProAdvisor site and they are new startups.  It is so much fun to help them start up and watch them grow.  I offer a service of setup, training and ongoing bookkeeping support.  My hope is they get so successful, they need me more!

SarahGonzales
Level 5

First-time consultant paid via 1099- need some advice

Aw, right back atcha @EmilyCowan!

lynda
Community Champion

First-time consultant paid via 1099- need some advice

@EmilyCowan What is driving me these days is this fantastic economy and business growth! I love helping small businesses. The past few weeks I have had quite a few leads from the Find-a-ProAdvisor site and they are new startups.  It is so much fun to help them start up and watch them grow.  I offer a service of setup, training and ongoing bookkeeping support.  My hope is they get so successful, they need me more!    Happy Summer.

EmilyCowan
Level 7

First-time consultant paid via 1099- need some advice

That's so awesome to hear, @lynda! Congrats!!

Anonymous
Not applicable

First-time consultant paid via 1099- need some advice

@Flyer, if you don't mind, I would like to challenge you a bit on your belief that you can't replace the $500K in retirement income that slipped away.  Stay with me here... :)

 

Here are a few questions to ask yourself that will open up your thinking, and get you back on the track to abundance:

 

1) Based on my experience, what services can I offer that potential clients get great results from AND that I really enjoy delivering? It's important that both elements apply because when you grow another successful company (and you will!), you want to make sure that you love it! It's not fun to build something awesome and then suddenly find yourself with a 60-minute commute to Denver for example, so BE INTENTIONAL at every step and you'll love your new company that much more. 

 

2) How can I package my services so I am not trading hours for dollars? There is no leverage whatsoever in selling time, so what packages can you put together that clients will really want and will pay a premium price for? NOTE: Create 1 to 3 packages ONLY. If you have more than that, you've moved into customization which is only OK if you charge A LOT for it. Which leads me to my next questions...

 

3) What is the MAXIMUM you can charge? Yes, that'st right - the MAX! You are highly skilled, evidenced by a successful exit, so have earned the right to charge a premium fee for your services. And the amazing thing that happens when you charge at a premium level is that clients respect you more, you show up fully for the work at hand, and the results are exponential. THIS IS CRITICAL. If you undercharge, you will be unhappy, resentful, and not produce at your highest level, so DON'T DO IT. Besides, you have to replace $500K, so you would you rather do it $150 at a time or $15,000 (or more!) at a time?!?  :)

 

4) Who will you have to BE in order to take ownership of points 1 - 3? How will you need to be different as the CEO of your new firm versus an independent contractor? What will you need to believe is possible? This is so big and so good!!! This question alone if pondered and taken seriously will get you back to financial stability before you know it, so DON'T SKIP THIS STEP!!

 

5) Lastly, come to OFFICE HOURS on Wednesday's at 11a PT and ask me anything! Growing a business can be lonely and in the beginning, downright scary, so come for support and reinforcement as often as possible! Don't you agree @EmilyCowan?

 

I am here for you Neil (and everyone else reading this because I'm talking to you too!!  :smileywink:), so tap into the goodness and LET'S DO THIS!!  

 

Happy Friday! J. 

E1
Level 2

First-time consultant paid via 1099- need some advice

I suggest you develop  a relationship with a tax accountant.

 

My suggestion is the QB online for which the cost is minimal and can be discontinued when no longer needed if you regain full time employment (w-2).

 

You've made the right decision to incorporate, but should also consider whether requesting S Corp election is advantageous as it would help to manage/reduce payroll taxes on 1099 receipts.  The S Corp will require you to file an additional return on Form 1120S which is due March 15, each year.

 

Please remember it's never too early to begin tax planning.  Self employment income/1099 incurs the additional employer portion of payroll taxes which most are prepared for.  Consider paying estimated taxes if worried about overspending from the 1099 receipts.    

 

The decision to file jointly should consider a number of factors including credits which you might forego if you elect to file separately.

 

My advice is to track your business expenses carefully.  Look for opportunities to deduct expenses which were not considered previously such as magazine subscriptions, etc.  Also, I don't know how much your car is used for business or the age etc. but automobile depreciation is typically a significant deduction if you qualify. Good luck and feel free to shoot follow up questions.  

Anonymous
Not applicable

First-time consultant paid via 1099- need some advice

#Momemtumto1Million @lynda!!!

 


@lynda wrote:

@EmilyCowan What is driving me these days is this fantastic economy and business growth! I love helping small businesses. The past few weeks I have had quite a few leads from the Find-a-ProAdvisor site and they are new startups.  It is so much fun to help them start up and watch them grow.  I offer a service of setup, training and ongoing bookkeeping support.  My hope is they get so successful, they need me more!    Happy Summer.


 

lynda
Community Champion

First-time consultant paid via 1099- need some advice

I am trying Julie!!!   Hired my first Virtual Assistant too.  She starts on Wednesday.  Spending this weekend making lists and videos and organizing.  It will help with the growth.  

 

I already found a few minor things that need to be taken care of that would be missed if it weren't for organizing.  

 

Glad I'll get to meet you @ #qbconnect this year! Maybe we can do the yoga class they have there. 

 

 

EmilyCowan
Level 7

First-time consultant paid via 1099- need some advice

Thanks for chiming in, @E1!

Anonymous
Not applicable

First-time consultant paid via 1099- need some advice

@E1,

 

Incredibly sound and thoughtful advice. Documentation is so important for all things financial, but it can be especially for 1099 folks who are "going it alone" so to speak. 

 

Any recommendations for how best to keep track of potential deductions?

 

When I was doing consulting, I kept two boxes in my office: one for receipts and documents I knew for sure were deductible, and a second for what I thought might be deductible. At the end of the year, I already knew what I could write off from box A. I went through box B, did some research, removed a portion and took the rest to my tax specialist for final evaluation. Not the most elegant method, but it helped me keep track of everything without feeling overwhelmed as I accumulated paperwork throughout the year. 

Anonymous
Not applicable

First-time consultant paid via 1099- need some advice


@lynda wrote:

I am trying Julie!!!   Hired my first Virtual Assistant too.  She starts on Wednesday.  Spending this weekend making lists and videos and organizing.  It will help with the growth.  

 

I already found a few minor things that need to be taken care of that would be missed if it weren't for organizing.  

 

@Glad I'll get to meet you @ #qbconnect this year! Maybe we can do the yoga class they have there. 

 

 


Congrats on your VA hire and absolutely YES to yoga! :smileyhappy:

Pro Tips for VA Training: Use Zoom or Skype so you can 1) share screens for show and tell, 2) record the video call for her future reference, and 3) have her create an "Operations Manual" so in the event that it doesn't work out, you won't have to start from scratch with someone else.  Boom!  Keep me posted @lynda!!

lynda
Community Champion

First-time consultant paid via 1099- need some advice

Two great minds think alike!  I spent the weekend organizing and setting up for our zoom meeting on Wednesday.  I am going to start small and build off of that.  I record sessions for my customers so great tip to do this with her. Fingers crossed it all goes well.  

E1
Level 2

First-time consultant paid via 1099- need some advice

My recommendation,  is to open a business bank account (I think this has already been done) and pass all business transactions through this account.  Also link the account to Quick Books and code transactions frequently (weekly) to remain organized.  The longer you wait to do this the more difficult it is to remember the details surrounding each transaction.   Best of luck! 

Peter_G_Stone
Level 3

First-time consultant paid via 1099- need some advice

Hi @lynda, a virtual assistant sounds like a great addition! Out of curiosity, what functions of your business are you requesting the VA handle for you? Also, is your firm virtual, traditional, or a hybrid practice?

lynda
Community Champion

First-time consultant paid via 1099- need some advice

Hi @Peter_G_Stone:  My business is 100% virtual and I love it that way!  My new VA is helping me set up new systems.  I am currently the one that does all of that work and the marketing.  Natalie is a wiz at marketing so I am hoping this is a win-win.  I just started setting up individual Slack channels to communicate with clients and keep everything orderly.  I also need her to help me with my website as the blog posts are building and need some organizing too.  I am excited to have her help me get some better systems in place because my business is growing.

Peter_G_Stone
Level 3

First-time consultant paid via 1099- need some advice

@lynda congrats on your growing biz, that is AWESOME!! I hope the VA works out for you. I may have to reach out in the future and pick your brain about a virtual operation. 

lynda
Community Champion

First-time consultant paid via 1099- need some advice

Any time Peter.  :)

Anonymous
Not applicable

First-time consultant paid via 1099- need some advice

A virtual operation is #freedom. Feels like an OFFICE HOURS topic @Peter_G_Stone and @lynda! You in?

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