Medical Interview Transcription Business as an Independent Contractor: Advantages & Disadvantages

A home based medical interview transcription business has its own advantages and disadvantages compared to being an employee or statutory employee of a medical transcription company. If you have an entrepreneurial spirit and have always longed for a legit business that you can open from home, then opening your own medical transcription at home business may be right for you. Although if you enjoy the benefits that working for a company can provide, then you might find that running your own business is not for you.

Here is a list of different pros and cons about opening your own home based medical interview transcription business that you should consider before investing in your own setup.

Advantages

Set your own hours: One of the best things about working for yourself is that you are able to set your own hours. While some clients may need you to be available during certain hours of the day, it is still up to you to decide what hours you will make yourself available.

Fire clients: When you own a home based medical interview transcription business you are the boss, so if you have clients that you do not like working for, then you can essentially 'fire' them and look for better clients. Employees do not have that privilege and will just have to find a new job if they are unhappy with their employer.

Choose your rate: As an independent contractor, you are able to set your own medical transcription rates. In deciding your transcription rates, you should take into consideration all of the other expenses that you will be responsible for, including insurance, medical transcription equipment, taxes, etc...

Ability to expand: If you find your business booming and you are taking on more and more clients, then you can consider subcontracting out to other medical transcriptionists who are independent contractors. This will allow you to continue to offer your medical interview transcription service to new clients and still get paid for managing current clients and employees. There are certainly tax implications when subcontracting out, so make sure that you speak with your accountant about what guidelines you need to follow.

Business deductions: As an independent contractor you will be able to write off a lot of expenses associated with running your business, including transcription equipment, office space, office supplies, marketing supplies, internet connection, and other necessary business expenses that you will incur.

Disadvantages

Insurance: As an independent contractor, you will have to provide your own insurance. When determining your rate, you should consider all of your expenses, including insurance, so that your interview transcription rates will reflect these types of extra expenses.

Retirement Savings: As an independent contractor you will also be responsible for funding your own retirement. Speak to a financial adviser to look at what type of options you have as a small business owner. Some types of retirement accounts may help to reduce your taxes, so speak to an accountant to look at your tax liabilities.

Taxes: As an independent contractor, you will be responsible for paying taxes on all the earnings you make from your home based medical transcription business.

No paid vacation, holiday, or paid time off: As an independent contractor when you do not work, you do not get paid. While you are able to choose your own hours, you will also need to take into account any time off that you will want to take for family vacations, holidays, etc...

Transcription equipment: You will likely need to purchase your own transcription equipment for your home based medical interview transcription business. These expenses may be a lot when you are just starting out, but thankfully you will be able write off almost everything that you need to set up your business. Speak to a qualified accountant for more information.

Business expenses: Owning your own home based medical interview transcription business and being your own boss requires that you spend some money setting up and running your business, including business licenses, marketing material, office supplies, etc... Most of these expenses can be written off, so speak to your accountant.