ACCOUNTING SERVICES FOR MILLENNIAL CLIENTS

INTRODUCTION
The world is changing everyday: the population is changing, technology is changing, economy is
changing and customer trends are changing. Change is indeed inevitable - not only in life but in business
too.

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.

Being a massive market segment, Millennials are top of mind for most businesses - firms that cater
accounting services are no exception. Accounting firms need to offer services and products that are
tailored to this generation's specific needs. Building strong relationship with millennial clients brings long
term benefits. Thus, it is important to invest time in understanding this latest generation of business
owners and adapting your firm's priorities to meet their needs and position yourself well for the future.

MILLENIALS AS ATTRACTIVE CLIENTS

Millennials, also known as Generation Y (or simply Gen Y), are the demographic cohort following
Generation X and preceding Generation Z. Researchers and popular media use the early 1980s as the
starting birth years and the mid 1990s to early 2000s as ending birth years, with 1981 to 1996 a widely
accepted definition.

The characteristics of millennials vary by region and by individual but they are typically perceived as
increasingly familiar with digital and electronic technology. This is true as their generation saw the
introduction of personal computers into private homes. They witnessed the birth of widespread internet
and mobile phone use. Also, they are some of the first to engage in e-commerce and social media.

Millennials are known to be tech-savvy, confident, creative, and well-adjusted individuals with
entrepreneurial mindsets. With their combination of dedication, optimism, and technology orientation,
Millennials are said to be perfectly positioned to develop small businesses. In the Philippines alone, they
occupy a significant portion in the country's population with the number of people under 35 starting up a
business.

Most surveys on millennial perceptions of entrepreneurship reach a similar conclusion - this generation
has set their sights on an entrepreneurial lifestyle. One such recent survey found that 66% of millennials
had goals to start their own business. This may be because millennials view starting their own business
as a path to financial independence and a flexible work-life balance.
61% of millennials expressed a belief that they could find more job security by owning their own business,
as opposed to working for someone else.

HOW TO REACH MILLENNIAL CLIENTS

Millennial's great appreciation for technology would definitely influence their interactions with their CPAs.
But for some accounting firms, this is a tough adjustment. For these firms to win the hearts of millennial
business owners, they must completely understand and anticipate the needs of their clients and deliver
beyond what they expect.

So how can accounting firms reach out to this important demographic and convince them to give their
services a try? Is there something special accounting firms can do to attract and retain millennial business
owners as their client?
Here are a few areas that are important to millennials that an accounting firm might want to consider:

1. Go digital
As mentioned earlier, millennials are technology oriented. They are highly interested in high-tech,
paperless and sustainable options when engaging with their CPAs. And in order to deepen the
relationships with this generation, accounting firms should also incorporate technologies to its daily
practices.

Firms may incorporate the following technology-based practices to attract millennial business owners:
> Cloud-based accounting softwares
> Paper-based accounting systems
> Digital payments
> Online invoicing
> Mobile apps
> Client portals

With their strong personalities, the millennial generation have changed business practices.
This rapid change is a wake-up call for every accounting firms that have grown accustomed to doing stuff
the old way and refuse to update their practices.

2. Provide diverse services

According to a survey, millennial business owners are more interested in different types of accounting
services than any previous generation. They put a greater value on businesses that provide them with a
range of services, saving them time and money.

However, before integrating diversification, accounting firms should consider what specific kind of
services do the millennial clients in their area are interested in. This is to ensure that every peso they
spent will not go into waste but would give the firm the benefits they deserved.

3. Prioritize communication
Love of communication and short attention spans - these are the two most commonly discussed millennial
traits. Being aware of such traits, accounting firms need to take these into account when dealing with
millennial business owners. As much as possible, simple terminologies on financial concepts are used
rather than the complex ones.

4. Master social media

To win the hearts of its millennial clients, accounting firms need to ensure their presence on social media.
As younger clients aged 34 and below, millennials are more likely to be looking for an accountant in less
traditional places. Hence, it is good that a firm maintains a social media account.

5. Nurture relationship
No matter how old they are, the firm should focus on building lasting relationships with current and
potential clients. Prioritizing communication, keeping promises, and even just listening to their thoughts,
may it be big or small can actually help the firm build a solid relationship today and lay the foundation
with this group for the future.

Always take into account that good customer service is the foundation for attracting millennial clients
and will be what keeps them loyal to your business.
CONCLUSION
The millennial generation definitely make up a massive market segment, locally and globally. However,
accounting firms who wish to attract and retain them as their clients should not jump into the conclusion
that all millennials are behaving the same way as what society labeled them to be. Firms must avoid
generalizing these individuals and lumping them in a single homogenous segment.

As stated earlier, the characteristics of millennials vary by region and by individual. They come in all
shapes and sizes. And just like any other generations out there, 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. These group of individuals are basically unique from each other but their common denominator is
their known traits of being tech-savvy, confident, creative, and well-adjusted individuals with
entrepreneurial mindsets.

The bottom line is - millennials are here to change the old business practices most accounting firms used
to have. Let's accept it. Others may see them negatively, but we must credit to them the wake-up call
they've addressed to every accounting firms that have grown accustomed to doing stuff the old way and
refuse to update their practices. We should atleast thank them for helping other generations in the
workforce to realize that flexibility is the key to survival in any sphere of life and that accounting firms are
no exception to this basic principle of growth.

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

REFERENCES
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https://www.accountancyage.com/2017/12/22/5-ways-adapt-accounting-services-millennial-clients/

https://www.accountingweb.com/community/blogs/michaeldeane/how-accountants-can-cater-to-
millennial-businesses

https://www.canopytax.com/blog/how-to-attract-millennial-clients

https://manilarecruitment.com/manila-recruitment-articles-advice/filipino-millennials-changing-
workplace/

https://blog.receipt-bank.com/5-ways-to-adapt-your-accounting-services-for-millennial-clients?
hs_amp=true

https://blog.aicpa.org/2019/06/millennials-are-changing-our-tax-practices-heres-
how.html#sthash.1fKRgkBb.SwlBzFcC.dpbs