In the dynamic world of business today, nothing seems stable.

Even customers, who a while back

had fewer expectations and limited preferences, have become more demanding and their needs
and inclinations change rapidly – with which companies seem unable to keep pace. However,
companies have no choice but to increase their capabilities and must adapt to the changing
preferences of customers or risk being overtaken by competitors, who might understand the
customer’s preferences a lot better. We know that the balance of power has shifted in favour of
customers today – they are the ones who determine the success or failure of a company. Without
customers, there will be no business – period. Customer service is about keeping to the promises
and coming through for customers each time. However, a company can only do all of this when
they completely understand and anticipate the needs of customers and deliver beyond what they
expect. Amongst the top changing preferences of customers, getting value over the business
relationship ranks high

Any business in today's fast-moving environment that is looking for the pace of change to slow is
likely to be sorely disappointed. The world is changing everyday: the population is changing,
customer trends are changing, technology is changing and the economy is changing. Businesses
who fail to embrace change can easily wind up as dinosaurs – out of touch and unable to compete
under current trading conditions.

Millennials are everywhere.

As the largest generation of Americans ever, they seem to be changing every aspect of our society.
They’re influencing marketing trends, technological advancements, politics, travel, food — there’s
little that isn’t affected by this generation’s unique way of doing things.

They are affecting your tax firm too — even if you don’t realize it yet.

Millennial tax clients are few and far between for most of us. Generally, their taxes aren’t yet
complex enough to warrant our services. But as this age group acquires wealth, we’ll begin to see
more and more of them walking through our doors.

So it’s crucial we’re thinking about how to adapt our unique way of doing things to meet theirs.

Here’s how the millennial generation is already changing our image of the typical tax client and
how you can prepare your firm to advise them.

It all starts with technology.

Millennials are technologically-oriented. Born between 1981 and 1996, this generation saw the
introduction of personal computers into private homes. They witnessed the birth of widespread
internet and mobile phone use. They were some of the first to engage in e-commerce and social
media. Their entire way of life is framed and filtered by the technological advances of the last 40
years.

It shouldn’t be a surprise, then, that this appreciation of technology would influence their
interactions with their CPAs. But for some CPAs, this is a tough adjustment.

Some of us rely on tried and true tax preparation and communications methods to do our jobs. We
mail out paper engagement letters and organizers. We sit down to face-to-face meetings with
clients. We still use fax machines! But millennials are interested in high-tech, paperless and
sustainable options when engaging with their CPAs.

So how do we adapt? We use the technologies they’re using to deepen our relationships with them.
We introduce paperless options — like electronic organizers and PDF copies of returns — to our
practices. We use electronic signatures, client portals, secure mobile apps and virtual meeting
platforms. We start texting! We equip ourselves with new tools and get on board with a different
way of doing things.

Being a massive market segment, Millennials are top of mind for most brands. (More than 80
million Millennials live in the U.S., according to the census bureau.) However, few brands have
mastered how to convert this group into loyal customers

5 ways to adapt your accounting services for millennial clients

The millennial generation, born between 1977 and the early 2000s, are making their mark on the
world as successful business owners and keen entrepreneurs.

The group, representing more than 75m people in the UK, are creative, confident, and very
comfortable with technology. They work in new, digitally-focused ways, and require services to
match this.

Bill.com has surveyed over 1,000 business owners, highlighting what millennials look for in
accountants and how firms can adapt their services to meet their millennial clients’ preferences.

Why are millennials attractive clients?

Millennials currently make up 35% of the workforce, according to a report by KPMG. In the UK
alone, the number of people under 35 starting up a business has risen by as much as 70% in the
last five years.

Almost a third of millennial business owners surveyed have companies that generate between
$1.1m and $25m in annual revenue – highlighting the growth potential of millennial clients, and
accountancy firms.

Building strong relationships with millennial clients also brings long-term benefits. Gaining the
loyalty of one millennial-led business could lead to opportunities across multiple businesses in
future years, with millennial businesses tending to remain loyal to their accounting firm.
How can businesses attract more millennial clients?
1. Go paperless

Paper-based accounting systems should be left in the past, especially if firms are trying to build a
larger millennial client base. Millennials prefer digital systems, with 82% of those surveyed saying
they would be “pleased” or “very pleased” if their accounting firm went paperless. Ditching the
paper has never been easier, with products like Receipt Bank’s scanner app enabling clients to
snap receipts and invoices quickly.

2. Be strategic

The first members of the millennial generation can be anywhere between 32 and 40 – not an
uncommon time to be starting their own business after climbing the career ladder for a few years.
When it comes to choosing an accountant, they’re looking for someone who can be a partner for
them in this new venture.

More than half of the millennials surveyed said that they wanted firms that provided strategic
insight and guidance for their business.

However, if accountancy firms are time pressured to provide advice to clients right now,
automating document collection and data extraction can free up a large chunk of time for the
practice. Not only is it less work for the accountant; automation can provide an up-to-date stream
of information from clients that can be used to provide valuable insight.

3. Embrace social

Clients who are 30 are five times more likely than those over 30 to look for an accountant on
social media. As younger potential clients are therefore more likely to be looking for an
accountant in less traditional places, firms need to ensure that they are visible.

Accounting firms, as well as nurturing their referral networks, should therefore grow their online
presence through SEO, social media, and digital advertising.

4. Offer subscription pricing

Millennials have grown up with subscription services like Netflix and Amazon Prime, with more
than half of under 30s preferring monthly flat rates. Moreover, as processes become more
automated, the amount of time spent on tasks is declining, meaning that timesheets are not
sustainable.

Fixed-fee, monthly pricing is therefore ideal for both millennial business owners and firms.

5. Prioritise communication
Two of the most commonly discussed millennial traits are their love of communication and their
short attention spans. Accountancy firms need to take these into account when pitching and selling
to millennial business owners. Keep jargon to a minimum and translate complex financial
concepts into more simple terminology when speaking with clients.

What next for accounting firms?

Prioritising these five steps will help accounting firms to attract and retain millennial customers.

To win their business, accounting firms must tailor their pitches and services to meet these specific
needs and preferences of millennial business owners.

Ignoring millennials might put a dent in your firm’s growth, especially when research from
Deloitte suggests they will make up 75% of the global workforce by 2020

Regardless of the service a company provides or the product it sells, one of the most important
market segments for everyone are millennials. This is especially true for companies that are aimed
at B2B services, such as accounting firms. For them, a segment that is as business-focused as
millennials is a potential holy grail. When we say that millennials are business-focused, we are not
kidding – they start their businesses much earlier than boomers and at twice the rate.

But, is there something special accounting firms can do to attract and retain millennial business
owners as their clientele? What exactly is that?

Expand Your Marketing

In order to best cater to your millennial clients, you first need to make sure they can find you and
the good news is that they can be reached in a more diverse manner than business owners over the
age of 40.

According to the 2017 Millennial Business Owner-Accounting Firm Survey by Bill.com, it is

clear that millennial business owners can be reached in more ways than older business owners,
opening up certain marketing channels that have been all but pointless in the past.

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For example, while only a mere 2% of business owners over the age of 40 use social media to find
accounting services, this rises to 13% with millennials. Advertising and internet searches are also
more effective when targeting millennial business owners. In other words, doing a mix of paid
digital, social media and content marketing can be a great way to attract millennial clients,
especially if you have the knack for providing them with the information they might need.
Diversify Services Provided
Even though we are well into the 21st century, there is still a relatively large number of accounting
firms that handle taxes and little, if anything, else. For some, this choice made sense because the
vast majority of their clients in the past wanted only this type of service. For others, this is less of
a choice and more of a lack of expertise.

If you and your accounting firm are after millennials, this will simply not suffice. According to the
aforementioned survey, millennial business owners are more interested in different types of
accounting services than any previous generation. When compared to the age groups of 40-55 and
56+, more millennial business owners are interested in all of the following accounting services:

Bookkeeping
Sales tax
Payroll
CFO services and consulting
Accounting technology recommendations/training
Bill payment
Budgeting and forecasting
Invoicing
Collections
Sometimes the percentage of interested business owners is only negligibly larger and sometimes
dramatically. The important thing to remember here is that millennials are looking for a wide array
of accounting services for their businesses and you would do better to branch out if you haven't
already.

Before you commit your accounting firm to diversification (which can cost money), you should
ensure that the millennial business owners in your country or area are interested in a specific kind
of services. For example, in Ireland which is famed for being startup-friendly, a good idea would
be to focus on company formation services, providing advice and assistance to fresh new
companies.

Guide
What millennial clients expect from your firm
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Go Digital
Every generation is more tech-savvy than the last. There will come a day when millennials will be
seen as the generation that new tech has passed by, but at the moment, they are the ones who are in
the loop when it comes to being digital.

When Bill.com asked millennial business owners what they would like to see their accounting
firms include as part of their services, more than 55% mentioned cloud-based technologies, more
than 45% mentioned online invoicing and about a third mentioned digital payments. They were
also quite clear about the importance of their accounting company being paperless, meaning that
not everything is printed out. Moreover, only a very small fraction of millennials said that
adopting new technologies is a challenge to them.

It becomes clear, therefore, that going tech-heavy is the way to attract millennial clients and the
best thing about this is that it can really be a wake-up call for accounting firms that have grown
accustomed to doing stuff the old way and refuse to update their practices.

Of course, it has to be pointed out that this emphasis on digital can also have its downsides, as
millennial clients might expect round-the-clock availability across a variety of channels such as
email, chat, various messaging software, etc. It can be a challenge to find a balance between being
there for these younger clients and drawing a line somewhere.

Give Them the Big Picture

Perhaps the most interesting find in the survey that we have mentioned a couple of times already
is the fact that a large percentage of millennial business owners are looking for accounting firms
that can help them with the Big Picture stuff, the strategic level of accounting and finances in
general.

This is perfectly understandable considering the relatively young age and the variety of
educational backgrounds of these business owners. They are looking for someone who will be able
to tell them (and in clear language) what problems they can expect down the line and how they
can expect their company to behave financially-speaking in the future. This goes beyond mere
consulting.

If your accounting firm doesn't have the people or the capacity to provide this type of service, it is
not the end of the world, but it is definitely something that millennial clients may be looking for.

Instead of a Closing Word

While millennials definitely make up an interesting segment (the result of a particularly massive
jump in technology and worldview), you should avoid lumping them in a single homogenous
segment that will behave the exact same way every single time.

Millennials come in all shapes and sizes, so to say. You will find introverts and extroverts among
them. You will find demanding clients and those who are happy just to get some assistance. You
will find people who get everything the first time you explain it to them and those who might need
a bit more.

In the end, don't be surprised to find out that millennials want what everyone else wants – a good
service at a reasonable price.

Businesses across the United States are working hard to attract and retain members of the
millennial generation. Accounting and tax firms especially need to offer services and products that
are tailored to this generation’s specific needs. While they are often painted with a broad brush,
millennials are a diverse, technologically savvy, and determined group that recognize their need
for professional accounting and tax planning services.

If you can prove that you have interesting and important services to offer millennial clients, you’ll
not only build a solid relationship today, but lay the foundation with this group for the future.
Good customer service is the foundation for attracting millennial clients and will be what keeps
them loyal to your business.

The millennial mindset

Also known as Generation Y, this group of Americans is generally considered to be born between
1981 and 1996. They currently comprise the largest group of employed individuals in the country,
surpassing both Generation X and baby boomers. Today’s millennials are in their 20s and 30s,
which means they are in an ideal place to benefit from the services your firm has to offer. Position
your accounting or tax firm in ways that resonate with them via thoughtful social media marketing
campaigns that promise them value, and then provide that value throughout their changing lives.

Like other generations, significant historical events shaped the way millennials think. They came
of age during the Great Recession and witnessed many troubling financial issues locally and
nationwide. This demographic is struggling with student debt unlike any other and yet they are
more likely to be entrepreneurs and small business owners who seek work-life balance.
Millennials are also most likely to have alternate revenue streams from freelancing or other
contract work.

How to reach millennial clients

So how can accounting and tax firms reach out to this important demographic and convince them
to give their services a try? Here are a few areas that are important to millennials that you might
want to investigate:

Incorporate technology

Millennials are more comfortable with technology than any other age demographic before them,
and they are seeking businesses that can engage with them on their level. This generation is
comfortable doing business via a thoroughly digital experience, and many prefer to do as much
paper-free business as possible. From digital payments, cloud-based accounting software, and
mobile apps for their accounting needs, millennials are not afraid of technology and expect it from
your firm.

Once you’ve reached potential clients, it’s important to show millennials that your firm has
embraced technology that is designed to make their experience shine. When you offer free Wi-Fi
in your lobby, incorporate automation in your day-to-day work, and embrace the cloud—when
you use technology to your advantage—you’ll attract more millennial clients.

Master social media

Accounting and tax firms can reach millennials where they work and play: social media. You need
to focus on maximizing your firm’s presence on social media and staying a step ahead on
emerging marketing trends. If you are unsure of how to market your firm on social media
platforms, you’ll want to connect with a small-business social media marketing company to tailor
your messages to potential clients.

If you want to be successful with millennials, it’s not enough to just maintain a social media
account. This demographic uses social media to organize, motivate, and socialize. Advertise some
millennial-friendly services and activities through social media, such as offering free seminars,
hosting young entrepreneur meet-and-greets, and more.

Provide diverse services

Millennials put a lot of value on businesses that provide them with a range of services, saving
them time and money. Look at ways your firm can meet their accounting needs, whether for their
personal financial health or for their business. Firms that can give them more than a basic service
like tax preparation are more likely to attract their attention.

For example, in addition to basic tax preparation, your company could also provide a
complimentary financial planning session or a seminar on maximizing retirement benefits. When
millennials feel as if they are getting real value for their money, they are more likely to stick with
your accounting firm when they need more in-depth services.

Nurture relationships

No matter what their age, your firm should focus on building lasting relationships with current and
potential clients. With millennials, it is especially important because they have a lifetime of
financial needs ahead of them. There are many ways that you can create a successful and positive
client relationship, including clear and frequent communication, enhancing rapport, being
prepared, keeping your promises, and truly listening to their thoughts, both big and small.

What can set your firm apart from the competition is how you make your millennial clients feel
about you. Be proactive in nurturing your relationship with each client and anticipating their
needs. By successfully nurturing your relationship, your firm will be the first thing they think
about when they enter more complicated tax circumstances or launch their own business.

It’s well worth your time and money to truly understand what today’s millennials want and then
make sure your firm provides it. When your millennial clients feel as if you get them and
understand their goals and desires, you’ll succeed in building and safeguarding their trust both
now and in the future.