Today's Technology for Tomorrow's Firm.
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16 May 2016 • www.CPAPracticeAdvisor.com THE PROADVISOR SPOTLIGHT SPONSORED CONTENT Intuit recently conducted a study in partnership with Emergent Research that found the number of on-demand workers will grow from 3.2 million Americans to 7.6 million by 2020. Seventy-nine percent of these work- ers will do so part-time and spend an average of 12 hours per week working via their primary platform. Approximately 43 percent of people in the on-demand economy also have a traditional full- or part-time job. "Te on-demand economy is the latest acceleration of a long-term transformation of the labor market. Te number of people engaging in full- or part-time self-employment has grown from 6 percent of the workforce in 1989 to 34 percent today – and we expect it to reach well over 40 percent by 2020," said Alex Chriss, Vice President and General Manager of Self-Employed Solutions, Intuit Small Business. Te on-demand economy is reshap- ing the way people earn a living by allowing them to take control of their careers and support their families. Tere are now more opportunities than ever for people to supplement existing income streams or to take the leap into being their own boss. Workers in the on-demand economy work in a broad range of industries – from transportation and delivery to legal and consulting services – and are typically identifed as belonging to one of fve key groups: • Business Builders: workers primar- ily driven by the desire to be their own boss • Career Freelancers – workers focused on building a career through independent work • Side Giggers – workers seeking fnancial stability by supplementing their existing income • Passionistas – workers who want fexibility to do something they love • Substituters – workers who replac- ing a traditional job that is no longer available Regardless of which group an individual may fall into, it's clear that on-demand workers value the independence and fexibility that comes with being self-employed. According to Intuit's study, more than 90 percent of self-employed workers reported that they like the fact that the on-demand economy gives them control over where, when and how they work. However, with this independence also come challenges, such as the need for individuals to self- manage their tax situation, healthcare and other items typically handled by employers. Many solopreneurs still need to be educated on quarterly and year-end tax headaches, keeping clean records and gaining visibility into their real income. In eforts to help the self-employed and on-demand workers, Intuit launched QuickBooks Self-Employed in January 2015. Designed to meet the unique accounting needs of this emerging workforce, QuickBooks Self-Employed helps self-employed workers organize their personal and business expenses. Having a solution that is designed for individuals with multiple income sources helps save accounting professionals countless hours of manually going through data and receipts. For example, QuickBooks Self-Employed's new automatic mileage tracking feature allows on-demand drivers to instantly record the number of miles driven for business and personal trips. Users can swipe to see their tax deductions in real-time, easing the burden of compliance and tax regulations on accounting professionals. "We must recognize the shadows that have emerged from the on- demand workforce. The benefits infrastructure of a generation ago was not built to accommodate the reality of work today. Tat's why my team is commited to building new solutions that deliver certainty and stability for self-employed people who are stitching together diferent income streams," said Chriss, who currently builds global solutions for independent contractors, freelancers and the self-employed. Te challenges presented by the increase in self-employment create a huge opportunity for accountants. Accountants are uniquely positioned to become strategic advisors on mat- ters such as co-mingled personal and business bank accounts, uncertainty over tax obligations and a general lack of clarity about their real income. Accountants have an opportunity to provide value-added advice to their clients on how best to plan for the future. As the workforce continues to evolve, it will be even more important for accountants to embrace the three pillars of the Firm of the Future – geting online, becoming a trusted advisor and staying connected. "Geting online not only allows accountants to work anytime, any- where, but it is ofen the best way to get in touch with workers who don't have a traditional desk job. With schedules in f lux, self-employed workers ofen depend on their mobile devices to help them stay organized on-the-go and stay connected on social media with important busi- ness and personal contacts. Because freelance workers ofen have multiple jobs, they understand the value of project-based billing because they too have to juggle several projects at once and don't always work by the hour," said Chriss. Future-ready accounting frms can help on-demand workers alleviate the stress of managing their business and personal fnances so they can focus on pursuing their passions. Tey understand the drive behind the inde- pendent, self-motivated and social workers who are their clients, but they also understand the challenges that face them. Nearly 43 percent of people working in the on-demand economy also have a traditional full- or part-time job and more than half of on-demand workers worry about fnding enough work or having and unpredictable income, when they're used to stable income. An accountant can help advise workers on which jobs they should or shouldn't be spending time on, and how best to maximize the benefts of a fexible schedule. T he emergence of popular on-demand companies like Uber and Lyf has sparked a burgeoning rise of a new type of entrepreneur, creating a new type of economy: a Workforce of the Future. Tis new workforce is disrupting and reshaping the traditional workweek as we know it. Disrupting the economy at such a high level creates both unique opportunities and challenges, and Intuit wants to be there to help solopreneurs and their accounting professionals navigate through these to success. The Workforce of the Future: How Intuit is Helping Accountants and On-Demand Workers CONTINUED ONLINE AT: www.CPAPracticeAdvisor. com/12203711