Three financial services professionals gave engaging presentations at a well-attended Contractors Group meeting in November. The theme for the evening was “Money Matters” and the presentations covered some of the basic financial aspects of operating your own business.
Accountant Diane Skidmore (Skidmore & Co CGA) focused primarily on taxation. Her detailed presentation covered a number of the business expenses that are tax-deductible, including office equipment and supplies, workspace in the home, vehicle expenses, training, and conventions. She also outlined some of the differences between an incorporated business and a sole proprietorship, and stressed the importance of maintaining good relations with the Canada Revenue Agency. Paying on time is the best way to avoid being audited! Diane’s full presentation is available on the chapter Web site: http://stcwestcoast.ca/03_resources/cic_pres_diane.swf
Financial planner Rafe Angell (Dundee Private Investors Inc.) explained that a financial plan is like a personal business plan. Self-employed professionals often spend considerable time and effort planning and managing their business activities and finances, but take an ad hoc approach to personal finances — often to their financial detriment. Rafe went on to provide two examples of strategies that can save the self-employed professional money: making non-tax-deductible interest payments tax deductible and setting up a trust for the payment of medical expenses.
Insurance broker Jeff Fawcett (Fawcett Insurance) addressed the issue of professional liability insurance, also known as E&O insurance (errors and omissions). E&O insurance protects self-employed professionals if they are sued. With Canadian society becoming more litigious, more professionals opting for self-employment, and more Canadian-based professionals working for American clients, the risk of being sued has increased. Jeff also warned that anything related to a home-based business is often excluded from the typical home insurance policy. (You may want to read the fine print.) Some home insurers may even refuse coverage if the home-based professional doesn’t also carry commercial insurance.
Setting up your own technical communications business requires more than just technical communication ability. You need to learn the basics of operating your own business. Those basics include knowing when to draw upon the expertise of qualified professionals. We all understand that technical communication is best handled by a professional technical communicator. The financial aspects of your technical communications business and your personal life are also best served by involving specialists.
