When working as an independent contractor, you are providing your services as an accountant to various companies and when they pay you, they do not withhold taxes because this becomes your responsibility. You are sent a 1099 at the end of the tax year and then you can choose to pay your IRS taxes on a quarterly basis, which makes it easier.
You may be happy to know that there is more contract accounting jobs today than ever before. To many people this is a huge advantage because perhaps they really do not want to work for any company. As a contractor, the client or company is not allowed to tell you when you should work, what your working hours are, or require you to meet a quota. If they do any of these they are crossing the line of making you an employee, but not giving you the benefits, that employee might have.
When you are looking for contract accounting work, many of them may in fact have you doing various types of work according to your schedule. When you work as a freelance accountant, it is always a wise idea to diversify, because your contract could end at anytime and if you are solely dependent financially on one client, you could be in for a rude awakening if it should end. While contracted accounting jobs are becoming more popular, they are still not the norm in the field, but it does seem to be taking on a renewed interest.
Not everyone that enjoys accounting wants to put on a suit and work in an office all day long, which is what traditional accountants, did. The field is changing quite a bit and many companies are finding it cheaper to bring on accounting contractors than to hire them as employees. This saves the company thousands of dollars because they are not required to offer medical benefits or even supply an offer for their contracted accountants. Therefore, contract accounting jobs have been on the increase in recent years as companies find ways to cut corners. Obviously, accountants are in high-demand, but how they work and where they work today is very different than it was just 10 years ago.
While many people see contract accounting jobs as a step back in the profession, others see it as a way to be fully independent of the company and it allows individuals who are working as contract to take on more than one company, which is always a wise thing to do when you are working on a contract basis. In addition, it allows the freelance contractor to work the hours they want, if they can only work 10 hours one week, it does not cause uproar in the system.
Other times, companies will hire on contractors and have them only work a few hours each week, that way if one person decides not to work for whatever reason, they have their work covered by the other contractors. Therefore, while contract accounting jobs become more popular than ever, you still need to have some accountancy work under you because this is what makes you more attractive to the employer.
While many people would never consider contract accounting work, others enjoy the freedom and they truly are working for themselves, which means they are self-employed. For many, possibly you, this advantage simply is too appealing to pass up. Many people make contracting accountancy careers from working at various companies, which actually broadens your employability because you are exposed to much more than the average accountant that is employed for one specific company.
Final Thoughts
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