The services offered by umbrella companies are extremely popular. It is of no surprise either. After all, an umbrella company will handle all of your invoices, taxes, and paperwork so that you don’t have to. This is extremely beneficial for contractors and freelancers. It allows them to save time, be more efficient, and budget more effectively. Who wouldn’t want this?
Nevertheless, the only trouble is that there are so many umbrella companies to choose from nowadays. Thus, selecting a company can be difficult. And, you should not underestimate just how important this decision is! Yes, getting someone to take care of all of the paperwork side of your business is a great help. However, this is only going to be the case if they do so correctly. If they don’t, you could find yourself in huge trouble, especially if the government starts breathing down your neck. And, just because you have outsourced does not mean that you are able to take all of the responsibility off your shoulders.
If an internal auditor was to demand to see your books so that they can make sure you are handling your finances correctly and paying the right taxes, you would need to have confidence in the umbrella company you have chosen. The typical internal auditor salary gives you a bit of an indication of the level of skill, precision, and ability these professionals have; they don’t miss anything. So, it’s simply imperative to choose an umbrella company carefully.
This is also vital purely because you want to make sure that your invoices are sent off in a timely manner so that you are paid quickly. After all, cash flow is one of the biggest hurdles for freelancers all over the world today, and you don’t want your umbrella company to make this worse.
This post helps to make it easier by revealing some key questions you should ask. Keep on reading to find out more…
- How much do you charge for your service? There is only one place to begin, and this is indeed with the price of the service. After all, there is no point going for a company if they are going to charge you too much money. You should have the ability to pay either via a weekly or monthly basis, depending on how you require the company’s services. Don’t go for the cheapest company you find. This is usually a recipe for disaster, as you are likely to suffer from a lack of quality. Nonetheless, you don’t want to pay too much either.
- Are your rates fixed? This is a pivotal question, yet it is one that most people overlook. A lot of umbrella companies, unfortunately, charge in relation to how much the person has earned. Therefore, if you have had a really good month you can expect to pay more for the services of the company. But, why should you have to? The best thing to do is to find a business that charges a fixed rate per week or month instead. By doing this, you know exactly what you are paying each month irrespective of what you earn.
- How does the service work? The only thing you will be responsible for when using an umbrella company is uploading your timesheet and expenses sheet. But, how do you do this? The best companies will have an online service for you to take advantage of. All you will have to do is upload your timesheet and your expenses sheet and then they will handle everything for you. You simply wait until your net profit has been deposited into your bank account.
- How long do you have to wait for your payment? This leads perfectly onto the next point – how long does it take for your net profit to be deposited? This is a pivotal question. After all, one of the main motives for using an umbrella company is for ease and convenience and to save time. What is the point in using such a company if you have to wait several weeks to receive your money?
- What are your email address and telephone number? Last but not least, it is important to make sure you have contact details for the company. You should also check to be certain the email and telephone number they provide works. This will give you the peace of mind that you can get in touch with the company whenever you have a concern or a query.