The recent 2016 Xero to Sixty Tax Time Study revealed that Millennials, Gen Xers and Baby
Boomers are all confident about the financial health of their businesses. All signs point to a promising year in the U.S., following an increase in the federal interest rate and a forecast of rising earnings and consumer spending. In addition to revealing an increase in confidence among small business owners the study also revealed that accountants are more confident about the financial health of their businesses, compared to last financial year.
How Does It Look? ("Generationally" Speaking)
62% of Millennials reported they are more confident in the financial health of their business than last year, while 59% of Gen Xers and Baby Boomers reported that they are more confident about the financial health of their businesses, compared to 2015.
Other Noteworthy Finds
- Nearly 60% of small business owners are already having a stronger year
- 78% expect to be more profitable in 2016 vs. 2015
- 70% of accountants reported they are more confident about the financial health of their firms compared to last year
Top Financial Goals For Business Owners
- Keeping books up-to-date
- Setting annual growth goals
- Organizing receipts and tracking expenses better
Russ Fujioka, Xero U.S. President said, “Many small business owners use the same accounts for their business and personal transactions so it’s a very easy thing to muddle up. Just 14% of those surveyed said their financial focus for 2016 includes separating their professional and personal expenses." They may want to note that the survey also revealed that 39% of accountants cautioned that mixing personal and business expenses is what most commonly triggers an IRS Audit.
Of the hundreds of accountants Xero interviewed for the survey, 60% said clients often claim deductions that actually may not be allowed, while 41% said many small business owners are missing out on deductions because they didn’t realize they were entitled to the write-off. By not working with a trained tax pro, small business owners risk either missing out on lowering their taxable income or end up making a mistake on their return, which winds up getting them audited.
What Do You Think?
Now that you've read some of the results of the survey, what do you think? How do your clients stack up? Are you hearing similar sentiments?
About the 2016 Xero to Sixty Tax Time Study
The 2016 Xero to Sixty Tax Time Study was an online survey fielded to small business owners and accountants who work with small businesses. The questionnaire was completed in March by a sample of 773 respondents, including 307 accountants working with small businesses and 466 small business owners.