Intuit recently released 'The State of Small Business Cash Flow,' a global study focused the cash flow challenges experienced by small business owners and the self-employed. Intuit is continuing to dive into the nuances making up cash flow issues for SMBs, by exploring the State of Payroll among these small businesses.
Payroll is often one of the largest expenses that small businesses experience and ensuring payroll is accurate, on time and compliant is essential to a small business’ success. This is also one of the key areas where accountants and bookkeepers can provide value to the SMB clients they serve.
Yet, QuickBooks found that many small businesses continue to struggle with payroll, thus negatively impacting their cash flow, employee satisfaction/retention and overall success. Key findings from the new report include:
Late_payroll
- More than 2 in 5 of small business owners frequently have been at risk of not being able to pay their employees by payday;
- Nearly half of small business owners estimate 30 percent or more of their company’s business expenses covers payroll;
- Nearly a third of small business owners have paid their employees late when at risk of not being able to pay their employees by payday, compared to 68 percent of owners who have moved money around;
- Fifty-five percent of small business owners report it takes one week or more to prepare for payroll;
Intuit: "7 Things You Need to Know About the All-American Payday" by Kim Harris - QuickBooks Resource Center
7_things_you_need-to-know-Paydays
- More than 2 in 5 small business owners run payroll themselves through software such as QuickBooks, 40 percent use an in-house accountant and 33 percent use an outsourced company or vendor, such as ADP;
- And, according to additional data from QuickBooks Payroll and TSheets found in 7 Things you Need to Know About the All-American Payday, 17 percent of employees who work for small businesses say that a single inaccurate paycheck would be enough to make them quit their job and 18 percent would quit after a single late paycheck.
If you would like more information about the issues associated with 'payroll' and its impact upon small business cash flow, you can read more of the study's findings and learn about the ways QuickBooks Payroll is innovating to solve for these pain points at: Small Business Cash Flow: The State of Payroll.