Independent Economy Council Releases First Annual State of Bookkeeping in the Independent Economy Report

The Independent Economy Council has released findings from its first annual State of Bookkeeping in the Independent Economy report. 

The findings are based on a survey of 623 independent workers who earn the majority of their income from 1099-related work, including freelance work, gig work, on-call work or anything else considered to be 1099 income. 

Commenting on the findings, Trent Bigelow, Independent Economy Council co-chair and CEO of Abound, said, "The findings confirm our belief that independent workers are an underserved market and there's a massive business opportunity for founders and organizations who are willing to dedicate resources towards building solutions that meet their unique needs."

Key Findings: 

Only half of independent workers are satisfied with how they keep their books. 50.1% are very satisfied with their approach — whether it be using a spreadsheet, software or outsourcing to a professional — while 49.9% are either somewhat unsatisfied (33.5%) or very unsatisfied (16.4%).

They primarily use spreadsheets and accounting software for their bookkeeping. 27% of respondents do bookkeeping manually with spreadsheets, and 25.4% use accounting software or an app. 11.1% use another way to manage their finances.

13.6% outsource their financial management to an accountant or a bookkeeper. However, 56.5% are either somewhat or very unsatisfied with that approach, saying that their accountant or bookkeeper doesn't understand their financial needs and goals, or demands too much of their time.

23% don't actively manage their finances. Reasons they don't include not knowing what else to manage other than making sure their income and bills clear, waiting until the end of the year or tax time to reconcile, and believing they don't generate enough income to need to manage their finances.

Their biggest challenge in bookkeeping? Separating business and personal finances. They're also challenged by managing cashflow, organizing documents and records, remembering to track everything, and not knowing how to "get ahead" in their finances.

The bookkeeping feature they want to see most is one that allows them to receive payment. Other desired features include bookkeeping in a mobile app, a tool that automatically finds business expenses, a tool that prepares tax filing documents, and a tool that helps them budget and plan.

About Independent Economy Council

The Independent Economy Council was founded in 2021 by a community of workers, advocates, entrepreneurs, and researchers in order to increase economic security for American workers by making independent work more viable for everyone.

In light of the rapid growth of the Independent Economy, the Council advocates for public policy and industry guidance that align economic success and security for America's 68 million independent workers, as well as those who serve and pay them. 

To find out more about The Independent Economy Council, visit www.independenteconomy.org. 

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