The Economy is Changing. Are You Seeing It? | AccountingWEB

The Economy is Changing. Are You Seeing It?

I’m curious: if you look at the last 100 hires among your clients, how many of those are independent contractors?

If your clients look like the rest of the small business community right now, more than 20 percent are looking to use a contractor as their next hire, according to our SurePayroll Small Business Scorecard®. It’s a significant change from what we might have seen 10 years ago.

Our survey tells us that for almost a quarter of the small business market, it’s easier to hire a contractor to take on specific tasks like marketing, IT and administrative work, and it also reduces the costs of taxes and benefits. 

How does your group of clients compare? And are you encouraging small business owners to use independent contractors where appropriate? The facts of this changing economy are that these contractors may be able to provide very specialized skills and still save businesses money. (Note: Employers need to be careful that they are correctly classifying independent contractors).

Whether or not this is good for the economy is another matter, but it’s the way things are going. When you think about it, you too are an independent contractor of sorts. Small businesses outsource accounting to you. It would be unreasonable to have a full-time accountant on staff in a company of less than 10 people.

The same appears to be the case in a variety of specialties.

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Michael Alter, payroll expert with an MBA from Harvard Business School, is a nationally recognized spokesperson providing thought-leadership and sensible advice to help accounting and payroll professionals build deeper more profitable relationships with clients. Alter, President of SurePayroll, writes the Trade Secrets column on INC.com and is frequently published in Bloomberg TV, the Wall Street Journal, and Entrepreneur Magazine.

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