Simply Business

How Does the Growing Gig Economy Affect Bookkeeping Services?

How the gig economy is affecting bookkeeping servicesIf you have been thinking of buying a financial services franchise, you only need to look at the growing gig economy in the U.S. as a good reason to do so. A recent JP Morgan study showed that the number of households that participate in online money-making platforms has increased between 2013 and 2018.

Growing Workforce Segment

The study categorized the online platform users into four groups: transportation, non-transportation, sales, and leasing work. Transportation users include ride-sharing services such as Uber and Lyft, while non-transportation include writing jobs. The remaining two categories refer to e-commerce sites like eBay and Airbnb.

By the end of the first quarter this year, 4.5% of surveyed households use an online platform to work in any four of these categories. In 2013, there were only 0.3% of the respondents who were involved in the gig economy. The study based its findings from 2.3 million Americans who earned a combined $38 million in five years.

Reasons for Growth

Independent gig workers may have increased in number because of the flexibility in work schedules and being their own boss, compared to contingent gig workers. The latter group falls under the definition of people working for another company without the benefits and job security of regular employees.

Whether or not they are freelancers, more people will require financial services for their own tax compliance. Even regular workers may need a professional for checking their books if they decide to moonlight as an Uber driver or an online writer.

Gig economy workers may not dramatically increase in the future, but their steady growth in numbers means that Americans are finding other ways to earn extra cash. This means that there will be a need for financial professionals who are able to help them with keeping track of their books.