Financials are the backbone of every business. Modern financial solutions and services are always essential to power business growth and viability—and are especially important in volatile and uncertain times.
SMB Group’s What’s Ahead for SMBs in Financial Management survey examines trends in SMB financial management in detail. In May 2022, we surveyed 751 SMB financial decision-makers and influencers in SMB (1-999 employees) and midmarket (1,000-2,500 employees) organizations.
In our new, free eBook, sponsored by Workday and Xero, we share key highlights from this study. For context, we look first at SMBs’ take on trends that could affect their businesses, their ability to successfully adapt to unexpected changes, and their revenue expectations. Then, we look in detail at the tools, services, and people SMBs are using for financial management.
Some key findings include:
- Concerns about inflation, supply chain disruptions, recessionary fears, the war in Ukraine, and other macro trends are widespread among SMBs of all sizes. Inflation tops the list of concerns: 83% of SMBs are concerned it could adversely impact their businesses. About three-quarters are worried that recession and supply chain interruptions could harm their businesses.
- Overall, SMBs rank difficulty in hiring and retaining staff, securing sensitive data, and reskilling staff for new requirements as their top financial management challenges. However, SMBs with fewer than 20 employees say top concerns center on managing cash flow and reconciling financial information.
- There are clear breakpoints for solutions to manage financials: 43% of solopreneurs manage this function without any software, but once SMBs have 2-4 employees, the use of accounting software jumps to 48%. Financial management software becomes the norm for managing accounting and financials for SMBs with 250 or more employees.
- Most SMBs forecast that spending on financial management software and outsourced financial management services will remain flat in the fiscal year. However, SMBs are more likely to forecast spending increases for software than for services. SMBs with more than 250 employees are much more likely to plan to increase spending on financial management software than their smaller peers.
These are just a few of the findings and insights from this study. Click here to read the full eBook.
SMB Group provides technology vendors with complete research results, advisory, and content services to help drive successful strategies to engage with SMBs. If you’d like to learn more about these services, and how we can help support your path forward, please contact Lisa Lincoln, Director of Client Services at lisa.lincoln70@smb-gr.com.
© SMB Group 2022
Source: Laurie McCabe’s Blog