Accounting firms that want to attract Millennial-led businesses as clients should diversify services, provide a digital experience and work in the cloud, according to a survey from Bill.com.
The "2017 Millennial Business Owner-Accounting Firm Survey" polled more than 1,000 business leaders who own the accounting firm relationship to discover what they require from their accounting firms.
“The Millennial generation currently includes more than 75 million members, with its oldest members holding decision-making positions within organizations," says Charles Crabtree, director of strategic accounts for Bill.com. "With the considerable impact of millennials on the business world, accounting firms that can meet and exceed their expectations will have a considerable competitive edge.”
Bill.com
A Millennial Mix of Services
While taxes rank as the top service needed by millennial business owners, they prefer a different set of services than previous generations:
- 54 percent opt for bookkeeping services, compared to 34 percent for those ages 40-55 and 30 percent for 56-plus
- 24 percent include accounting technology recommendations and training in their services, three times as much as those 56 or older (8 percent) and higher than those 40-55 (16 percent)
- 22 percent request that their firms handle bill payment for their companies, while 14 percent of business owners 40-55 and 8 percent of those 56 and older ask for this service
- 20 percent of millennials indicate that they need invoicing from accounting firms, while only 8 percent of those 40-55 and 4 percent of those 56 or older do
- 31 percent say they currently have CFO-level consulting services and 52 percent say that strategic insight and guidance are necessary from accounting firms
In addition, nearly 40 percent of the millennial business owners and decision makers indicate that they want an accounting firm that has in-depth knowledge of their specific industry.
“If your accounting firm focuses primarily on tax services, it may be missing evergreen opportunities to attract millennial business owners," says Jason Blumer, founder of Thriveal CPA Network. "Services such as bookkeeping, invoicing and consultation are valuable throughout the entire year and represent opportunities to build profit and stabilize cash flow,”
Thriveal inspires countercultural firm owners to embrace their entrepreneurial creativity within the profession.
Wanted: A Digital and Cloud-based Accounting Experience
The tech-savvy millennial generation displays a preference for digital accounting, with 82 percent opting for a paper-free experience.
This digital sophistication impacts other areas of accounting, including:
- 56 percent want their accounting firm to work with cloud-based accounting technologies
- 33 percent prefer digital payments
- 25 percent use their mobile devices for accounting
- 64 percent prioritize email as their main form of communication with accountants
As one millennial business leader shared: “Our past bookkeeper wanted every invoice and P.O. printed, filed away and saved. He did not want to integrate the different systems we used and was very archaic in his style of work.”
“Technology is woven into a millennial business owner’s life, both personally and professionally. Firms should explore and adopt new technologies that provide a greater level of convenience for millennial business owners. Likewise, invest in training and certifications for firm employees in order to stay current with the latest advancements,” said Crabtree.
Billing & More
The survey revealed other prevalent trends for millennial business owners such as:
- 44 percent prefer monthly flat rates, and 35 percent want fixed fees per project.
- 42 percent want an accountant that can translate complex financial concepts into information they can understand.
- 24 percent say their greatest accounting frustration is reporting, 20 percent say it is forecasting and 17 percent say it is managing cash flow.
- 23 percent of Millennial business owners 30 and younger use internet searches to find accounting firms, 18 percent rely on advertising and 14 percent get referrals from technology partners. Referrals from peers, friends, or family leads at 64 percent for this group, but is lower than the percentages for previous generations (79 percent for 56 and older and 83 percent for those 40-55).
To learn more about what millennial business owners want from their accounting firms, download the "2017 Millennial Business Owner-Accounting Firm Survey" special report or infographic.