Working as a self-employed contractor, freelancer or owner of a business requires an independent way of life that involves shouldering more risk than a regular employee. Unfortunately, this means you can find yourself even more at the mercy of uncontrollable national or even global events such as a struggling economy, political turmoil or even a widespread pandemic, especially when compared to your full-time employed counterparts.
However, there are a number of ways in which self-employed workers and contractors can look to protect themselves and their businesses. Although there are no guarantees of ultimate success and prosperity, financial planning and forecasting can go a long way to prepare and safeguard the financial future of both yourself and your business.
As the COVID-19 outbreak continues to sweep the world, affecting all areas of business, the importance of sound financial planning for contractors has never been greater. Those contractors who practise sound financial planning and forecasting are more likely to be better prepared to weather difficult times. But why is this the case and how can financial planning and forecasting help you specifically as a self-employed contractor?
Planning for success
As a contractor, getting bogged down in the day-to-day mechanics of your work while neglecting the bigger picture can be all too easy to do. However, in order to give yourself the best possible chance of succeeding, creating and managing a well-thought out financial plan and making use of optimised financial forecasting is essential.
Many businesses and contractors tend to pick and choose which areas of financial planning they carry out. While some look specifically at managing cash flow and profit, others look to target potential areas of growth or analysing the actions of competitors. However, what many contractors fail to do is to create a formal and comprehensive financial plan that attempts to forecast and analyse the best and worst case scenarios you may face over a set period of time going forward, before setting out specific goals and targets. This lack of planning can make staying on track and achieving financial objectives more difficult, as well as making weathering unforeseen periods of financial difficulty much harder.
Putting a well-structured financial plan in place allows you as a self-employed contractor to fully concentrate on doing what you love – getting on with your work – with the added reassurance of knowing you have done all you can to plan for the future and protect your business and its finances.
The guidance and support you need…
At Brookson One, we understand the challenges that come with working as a self-employed contractor, and we get that finding the time to organise a financial plan is not always easy. That’s why we have created our Ultimate Guide to Financial Planning and Forecasting. Jargon-free and easy-to-understand, it shines a light on what good financial planning and forecasting looks like and highlights just why these skills are so important. Discover what financial planning can do for you and your business, find out which methods will work most effectively along with the best ways to implement them, and then just sit back and enjoy the benefits.
Although financial planning and forecasting can be self-implemented, an expert accountant – such as Brookson One – can provide the specialist advice and support you need to successfully put a comprehensive and tailored financial plan in place. This can help to secure your financial future in a simple and stress-free way, leaving you to concentrate on what matters most to you.