As in all areas of our daily lives, technology has had a tremendous impact on how we define jobs, work, and professional development in recent years. As early as ten years ago, the typical professional career ladder looked very traditional beginning with gaining an education and ending thirty-something years later with some earned level of manager role inside an organization.
As technology and app-based tools were put at the fingertips of the masses, it became obvious to many that it doesn’t take a Zuckerberg level idea to be able to leverage technology in order to earn money. This realization has completely morphed our ideas of both work and earning money. Those that have embraced starting a “side hustle”, or even completely taking the plunge into self-employment while utilizing modern technology tools are referred to as “Gig Economy Workers”.
The “Gig Economy” is the fastest growing sector of our economy in terms of people becoming freelancers, independent contractors, and online small business owners. Gig economy workers often enjoy independence from traditional employment, creative freedom, and thrive in high levels of niche specialization. Examples of gig economy workers we interact with in our day to day lives can include the Etsy shop owner, Uber Eats driver, Lyft driver, freelance web designer, and a physician contracted in telemedicine.
Our current economic struggles associated with the COVID-19 pandemic have increased the interest of individuals to become more self-reliant and will likely cause an even more powerful surge in the gig economy following our nation’s recovery from the pandemic. Our view of remote work arrangements, as well as personal and professional priority balancing has rapidly changed as an entire society during this time. These effects will be long-term and will forever change the ways that we work.
As more people find themselves laid off from traditional employment or decide to walk away from corporate work and enter the gig economy, we will likely enter a period of innovation and strong entrepreneurship. The challenges that many people face when finding start-up success as a self-employed business owner, freelancer, independent contractor, or gig worker are associated with the legal and financial management of their businesses.
Self-employed individuals often need professional advice on entity selection and creation, accounting requirements and record keeping, payroll services, cash flow management, tax planning, estimated tax payments, and even personal budgeting. These are just a few examples of the many important aspects of joining this new economy as a successful entrepreneur and are issues which should be handled through working with a trusted professional. It is important to team up with a CPA and/or business attorney who operates as a licensed professional and keeps your best interest in mind.
Thinking about starting a small business and looking for a forward-thinking accounting firm? Contact us at info@bynumcpa.com for more information, or check out our sister companies at www.bynumcpa.com and www.arcactg.com for more information.
-Wes