There are days when running a small business can certainly test your limits. There are always going to be challenges – whether you’re dealing with customers, employees, marketing or technology. One of the biggest hurdles faced? Small business accounting challenges. Productivity provider, Wasp Barcode Technologies recently asked small business owners exactly what their biggest challenge was and accounting functions rose to the top.
Greatest Small Business Challenges
In their Small Business Accounting Report survey, Wasp found that only 42 percent of small businesses have a CFO or controller. For companies with 11-25 employees it drops to 25 percent. And while accounting is central to running a small business, most entrepreneurs are not professional accountants and only 40 percent of small business owners feel they are extremely or very knowledgeable on accounting/finance.
Nearly 400 small business owners were surveyed in the industries of nonprofit, retail, agriculture, banking/financial, education, energy, healthcare, hospitality, service providers, IT and professional services, as well as manufacturing, military and warehouse. The survey found that business owners find the greatest challenges in these five areas:
- Accounts receivable/collections
- Cash flow
- Managing paperwork
- Closing the books each month
- Managing payroll
Other key findings included:
- Only 17 percent of small businesses use an asset management system that allows auditing
- Accountants ranked among the top professionals in order of importance to small businesses; and, 88 percent of small businesses are very or somewhat satisfied with their accountants
Why then do so many small businesses go without a senior level accounting professional on staff?
There are ways to save on costs by managing some of the back-end work before it gets to an accountant, which can be simplified by managing it through your accounting software.
Simplify Your Business Accounting
With today’s advancements in technology and wide options of accounting software that can help you with your accounting functions. Sage 50 offers a business solution that manages your accounting as well as all your other operational needs, including:
- Sales Activity
- Job Costing
- Payroll and Taxes
These are just a few of the things well-rounded business solutions can manage for you. If you’re accounting software doesn’t offer all these benefits, you may not be using the right solution. Quantum Buyers has several solutions and can help you find the right one for your specific business needs.