If Your Business Has a Problem, There Is Some Tech to Fix It
Your business’ finances are something that weighs heavily on your mind at all times, whether it’s paying your employees or ensuring healthy acquisition of new hardware or software. Cash flow for businesses doesn’t have to be hard, though you wouldn’t know it, according to a recent report from Intuit.
Intuit QuickBooks released a study examining where small businesses stand regarding their cash flow. This study, titled The State of Small Business Cash Flow, shows that cash flow issues present a considerable problem for businesses. This survey was conducted on 3,000 small businesses with fewer than 100 employees in the United States, United Kingdom, Canada, India, and Australia.
The survey states that 61 percent of small businesses have regular issues with their cash flow, with 42 percent of this group claiming that there had been a cash flow issue within the past year. Out of all businesses surveyed, 32 percent indicated they have been short on capital, leaving them unable to pay for certain obligations, be it payroll, loans, vendors, etc. Over two-in-five small business owners have also faced the issue of paying employees late, while 32 percent have actually had to do so.
In the United States, insufficient cash flow has led to missed opportunities for many organizations. Businesses have lost an average of $43,394 by passing on projects due to lacking sufficient funds. More than half also lost at least $10,000 due to the loss of such opportunities.
The Underlying Cause
This survey indicates that small businesses in the United States average a total of $53,399 in outstanding receivables. This is money that is owed to businesses. Businesses on average wait 29 days before their payments are received, a situation that causes a lot of trouble for organizations that rely so much on their funds.
If you don’t want to waste time and resources waiting for payment for the services you provide, CASS Tech can help you put together a system that tracks payments, delivers invoices, and creates flexible payment options. To learn more, reach out to us at (248) 538-7374.