Whether you’re looking to expand your tax practice, or you’re just looking for a side gig, the millennials are an interesting group of customers. They have different interests and a different set of priorities than their parents. They are more savvy about technology and the internet, and have a distinct sense of responsibility that older generations may not share. They are a lot more socially aware than previous generations, and are eager to take part in charitable giving.
As you can see from the charts above, millennials are big consumers of technology. Millennials are big on the web, and many use it for every aspect of their lives. They also use technology to shop and communicate. Many use rideshare services and public transportation to get around. Some millennials have made the smart move to forego owning a car altogether. They also see the internet as a major competitor to traditional banks and credit cards.
A study from the millennial-centric company, Wealthsimple, found that there are 87 percent of their clients under the age of 45. Among these millennials, a whopping 61% are considering joining the “gig economy” – a fancy term for a freelance or contract job. And while it may be difficult to build a successful tax prep practice from scratch, there are many resources to help get you started. Some of these include local colleges and local sporting teams. A good accountant should be able to tell you which companies offer these programs, and point you in the right direction.
While millennials may be oblivious to the tax preparation industry, their parents are not. In fact, a recent survey from H&R Block found that 63 percent of millennials stopped asking their parents to file their taxes. The best part is that millennials are not swayed by the old-fashioned tax preparation experience. In fact, millennials are taking the IRS by storm, en masse.
For millennials looking for the perfect side gig, the tax preparation industry offers a lot of perks. The average millennial accountant/auditor makes $77,920 a year. That’s a lot of money, and the job is flexible. Tax preparation may not be the most glamorous job, but it certainly has its merits. Among other things, millennials like the flexibility of working from home. And as more employers embrace the gig economy, a tax preparation job may be the ticket to the top.
As for the actual tax filing process, the IRS will be tasked with handling millions of relief checks as part of the American Recovery and Reinvestment Act (ARRA). In the past, this type of tax filing has been a thankless job, but thanks to the ARRA, tax preparers are now working smarter. This includes new tax provisions in the stimulus package and a few other changes. So, the millennials are a prime target for the best accountants in town. Those with the skills to provide this type of service will be in high demand in the years to come.