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Hello All, Due to impending salary and dividend submission deadlines, I’ve been getting a lot of questions about how to optimize the allocation between salary and dividends to pay the least amount of tax. Unfortunately, there is no one size fits all answer - basically it depends on a variety of factors. One of the factors when determining compensations is trying to figure out what our time is worth This is a complex topic with many different facets and arguments. How much we charge for our services, as small business owners, is ultimately a determination of fair market value between the client and us. There are a number of factors that go into determining this amount but ultimately, the responsibility is on us to communicate our value to potential customers. While there are a handful of customers who always want to haggle on price, it is important to remember that the majority simple want a problem solved and are willing to pay for an effective solution. Of course this is easy to talk about in the abstract, but it doesn’t solve the problem of exactly what we should be charging. One of the variables on which we base our prices is what others in our industry are charging. This can be difficult information to find, however, I came across a great resource from the women who freelance newsletter. They compiled a google doc where a number of freelancers indicated the rates they charge based on the most common metrics used in their industry. Eg. website developers might charge by the hour while writers might charge by the word. The document is available to view here and is categorized by job titles. I encourage anyone who is struggling to determine their price or if they just want a point of reference, to check it out.
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