Contracts and Finance

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6 Things to Include in a Project SOW

By MBO Partners

Writing and delivering a Scope of Work (SOW) can at first seem like a daunting task. However, once you understand what goes into the various parts of the document, it becomes much more manageable and can be a useful tool to help you get organized before a project begins. A project Scope of Work is…

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taxes

What is Net Salary: Definition and How to Calculate

By MBO Partners

Knowing how to calculate your net salary is important when it comes to managing finances as an independent contractor. If you’re considering starting a small business, you are probably encountering many new financial terms as you begin to set your bill rate and put systems in place for tracking your time and collecting invoices. Understanding…

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Verbal Contracts: 4 Best Practices

By MBO Partners

Entering into a verbal contract with clients a common practice among independent professionals, but it’s not a best practice. Without the red tape and bureaucracy that can slow down larger businesses, independents enjoy the advantages of being flexible and agile in transactions and deals. However, while verbal contracts often simplify business, if things go sour,…

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How to Raise Your Consulting Rates

By MBO Partners

You maybe hesitant about raising your rates, but knowing how to increase your bill rate will put you at ease. If you are at a point in your career where you have years of experience, produce high-quality work that is backed by client recommendations, and provide services that are in-demand, it might be time to…

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Gross vs Net Income: Differences and How to Calculate

By MBO Partners

The terms gross income and net income can be easily confused. Per definition, gross income is the total amount you earn, and net income is actual business profit after expenses and allowable deductions are taken out. However, because gross income is used to calculate net income, it’s important to understand how each is calculated. When…

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Year-End Tax Planning Strategies for Independent Contractors

By MBO Partners

As the year draws to a close, it’s common to take some time to look back on the performance of your business. Reviewing your back office—records, taxes, expense tracking, billing, etc.—is another helpful practice to prepare for the new year. Organizing paperwork and making sure records are accessible will help ease the burden of searching…

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Pay Rate vs Bill Rate: What’s the Difference?

By MBO Partners

Bill rate and pay rate are easily confused, but they both factor into the decision of how much you should charge for your services as an independent contractor, consultant, freelancer, etc. When negotiating with a client at the start of a consulting project, make sure you are clear on your rates, and if you are…

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What to Include in a Consulting Agreement: 7 Sections Every Agreement Should Have

By MBO Partners

A consulting agreement between an independent contractor and a client should provide legal protection for both parties while also clearly establishing expectations of the project to be completed. The exact language and sections included in your contract may vary depending on your industry, client type, and location. Independent contractor agreements are particularly important for independent…

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8 Terms that Should Be Included an SOW (Scope of Work)

By MBO Partners

What is a Consulting SOW (Scope of Work)? A Scope of Work (SOW) is a document that defines how a project will be executed through specific tasks, activities, deliverables, and timelines. A SOW also provides important legal protections for both you and your client. While many people associate SOWs with large-company projects, they are equally…

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4 Reasons You Need a Consulting Agreement

By MBO Partners

Independent contractor agreements are a written record of the agreement between consultant and client. Not only do they provide legal protection, but they also create a sense of professionalism, encourage communication, and ensure an efficient and streamlined process to complete the project. Contracts can be as long or as short as you need. Taking the…

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