Independent traders have enough on their plate without juggling the complexities of taxation. Additionally, hiring an accountant can be costly for workers who already have very thin margins.
For James Fuller, CEO and co-founder of Hnry, this bugbear was so frustrating that he developed a dedicated accounting solution so sole traders never had to think about tax again.
SmartCompany sat down with Fuller to examine how their spark of genius changed the accounting game.
Who is Henry?
On the surface, Hnry looks like other tax and accounting tech offerings, but it’s also so much more than an app that lives on your phone. Behind the smart interface, Hnry is a team of accountants who provide real-time, high-quality support for independent traders.
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Hnry was designed to streamline tax and accounting so sole traders can focus on what they do best: taking care of their business. And the testimonials speak for themselves – as Fuller describes, he has clients who tell him unequivocally that Hnry has changed their lives.
“They tell me they used to get up at night worrying about tax bills,” he says. “So that they can now focus on growing their business. They have access to a team of experts who don’t accuse them of not understanding the intricacies of taxation. »
“Hnry gives them the confidence to go out and be a single trader without worrying about taxes and finances.”
Hnry doesn’t just make tax and accounting easier for sole traders, it changes their lives for the better. And for time-pressed sole traders who see nothing worse than calculating their tax obligations throughout the year, a little app is a quick way to eliminate the anxiety.
It all started with a spreadsheet
There was no “light bulb moment” for Hnry’s creation. Co-founders James and Claire struggled with the same tax difficulties that so many sole traders are currently facing.
They searched government websites. They hired an accountant. They created commercial bank accounts that charged high fees. They paid for complex accounting software. But in the end, they faced the same frustrations and spent long hours fiddling with numbers. So they decided to fix things themselves.
“Claire and I both used a series of spreadsheets to make our lives easier,” he says. “We had no intention of building a business from there. We were simply resolving our personal pains.
However, word of these magical spreadsheets spread and before long friends, acquaintances and eventually strangers were looking for the Fullers’ spreadsheets.
Fuller thinks sole traders shouldn’t have to pay through the nose for tax fixes.
“Old-school accountants are notoriously difficult to contact. Then when you finally manage to reach them on the phone, they start the clock right away,” he says. “The fee structure tends to be opaque and you never really know how much it’s going to cost you until the end of the year.”
Conversely, Hnry’s fee structure is transparent: you pay $1 + GST for every $100 of self-employment income earned. For high earners, fees are capped at $1,500 per year if you earn more than $150,000 in self-employment income.
And no matter what you earn, you get unlimited use of Hnry’s services and accounting team.
Intelligent technology managed by accountants
As many sole traders can attest, making a big change in a business can be daunting, especially when it comes to finances. But Fuller says Hnry users can expect three big positives:
- Automatic deductions: “Everyone who joins gets their own unique Hnry bank account for their unique trader income to flow through. Each time you are paid by a client, we automatically calculate, deduct and pay the exact correct amount of your taxes – income tax, GST, health insurance, student loans and all that apply – before immediately transferring the rest in your personal bank account”
- Web and mobile support: “We offer a range of tools and features that are extremely useful for independent traders. Some people need to invoice, others need to send quotes, while others need to increase trade deductions. They can do all of these things in a matter of seconds. seconds through the Hnry app.After we lift a deduction, our accountants will review it to get them the right tax relief immediately.
- Pay per use: “Resources, tools, guidance, support and access to our accounting team are all provided under the same pricing structure. The whole service is also paid, so you only pay when you win. Our fee is 1% of the money paid into your Hnry bank account, then we instantly claim it for you as a business deduction. »