ScaleFactor,
the business OS and accounting app that enables businesses to operate in
real time, today announced its inaugural ‘State of SMB Finance Report’
survey insights.
Data from the survey provides a comprehensive overview of current
finance and business growth trends, including the usage and preferences
of accounting software solutions.
The report is the result of polling 500 randomly-selected principal
decision makers from U.S.-based SMBs with less than or equal to 500
employees surrounding the financial decisions impacting growth prospects.
SMB Data Indicates Growing Revenue and Conservative Hiring
The majority of survey respondents showed stable or growing revenue
numbers for 2019 compared to that of 2018. Only 4% of businesses polled
saw revenue decrease over 2018. Despite growth numbers, over 50% of
businesses reported that they did not hire any new employees in the past
12 months.
Of business owners experiencing hiring impediments, the majority
reported that the burden of salary costs was the top deterrent to
hiring, followed by skills shortage and health care costs. Salary costs
were reported as four times more likely to be a hiring impediment than
the current competitive labor market.
State of SMB Finance Report Key Data Points
- 76% of businesses report no plans to hire a CFO in the future
-
58% of business owners currently use an accounting/back-office
software platform, reporting time savings and fewer mistakes as the
top benefits of use -
Technology implementation correlates directly with the size of the
company, with 97% of medium-sized businesses utilizing an accounting
technology platform -
The majority of small businesses are unaware of financial software’s
capabilities, while 72% of medium-sized businesses report adoption of
AI- or ML-based software -
Sources of growth funding widely varies by SMB size: 34% of very small
businesses (VSBs) with 1-19 employees reported reinvesting company
profits to finance growth funding, 43% of small businesses (SBs) with
20-99 employees reported using a credit card, and medium-sized
businesses (MBs) with 100-500 employees reported that loans from
financial institutions were used for financing growth - Larger businesses tend to spend more as a result of the federal tax cut
-
Top accounting software task is bookkeeping; invoicing and payroll
follow closely behind
“The data from our inaugural report highlights the fact that small
business owners have a lot on their plate, from running the business to
performing back-office tasks,” said Kurt
Rathmann, founder and CEO of ScaleFactor. “We are experiencing a new
phase that focuses on capturing the efficiencies of an intelligent
workforce through the use of insightful and prescriptive technology.
Complex back-office operations can now be consolidated into one
intuitive ‘business OS’ that provides a foundation for owners to focus
on growing their business. Our innovative platform evolves best
practices making it an exciting time to be an SMB owner.”
By providing useful business insights and managing all back-office tasks
through their online
bookkeeping software, ScaleFactor is committed to empowering small
business owners to be proactive and to focus on growing their business.
The company has seen a record 700% year-over-year sales growth based on
same quarter sales, fueled by small businesses’ vast needs for more
effective payroll and invoicing software.
For more information or to download the full report, please visit: ScaleFactor’s
State of SMB Finance.
About ScaleFactor
ScaleFactor is on a mission to help small businesses scale faster. By
automating complex accounting tasks and translating financial
information into usable business insights, ScaleFactor is enabling
business owners, managers, and entrepreneurs to focus on what they love
— running and growing their business. Find out more about how
ScaleFactor is solving the problems that businesses face every day at scalefactor.com.
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