Running a small business can be a challenge, particularly during unstable times. There are numerous tasks to complete, but not enough time to handle them all. Additionally, entrepreneurs must balance managing the basics of running a business, such as accounting, invoicing clients, and paying bills, with activities that generate revenue, such as marketing and sales. This is where technology comes in, providing entrepreneurs with solutions that can manage multiple tasks, freeing up time and resources to focus on income-generating activities.
Despite the abundance of innovative technology, small and mid-sized businesses are not using these tools as much as they could be. A recent survey conducted by Bill.com found that 80% of SMBs believe the solutions available for managing their financial operations are not meeting their needs. In the 1990s, technology providers designed solutions for enterprise-level corporations, which they quickly adapted to also serve small businesses. However, these offerings lacked the features that small businesses needed, leading to frustration among entrepreneurs.
Fast forward to today, and this situation is still prevalent. The survey showed that many small businesses feel like they are being ignored by technology providers who focus on enterprise-level solutions. A majority—63%—believe that these providers do not offer solutions tailored to their needs, with nearly half (48%) stating that they cannot afford the offered solutions.
This gap in technology solutions results in many SMBs using outdated manual bookkeeping practices. Eighty-five percent of these businesses track at least some of their financial operations manually, and 57% of small business owners and 61% of decision-makers for midsized businesses track half or more of their financial functions manually. This is an ineffective use of time and resources that inhibits business growth.
However, there is hope for SMBs. The Small Business Administration notes that the more than 32 million small businesses in America account for 44% of total US economic activity but many of them feel they lack a suitable all-in-one technology solution to navigate running their businesses. The Bill.com survey found that 87% of businesses want an all-in-one technology solution that meets their individual needs and provides company support in bookkeeping, accounts receivable, payroll, and accounts payable areas. Additionally, 69% of SMBs believe that financial operations technology applications that seamlessly interact with each other are essential.
The consequences of not updating their financial tech operations are concerning to SMBs. A majority predicts struggling to grow (34%) or falling behind their competitors (21%) if they do not get the right technology support. The same percentage is also worried that they would experience delays in fulfilling orders and experience a reduction in revenue. Finally, 17% are concerned about having to hire more staff to keep up with their current systems.
However, there is still optimism with 54% of SMBs reporting they are on a good path and making significant improvements. Bill.com, which offers cloud-based software that digitizes, simplifies, and automates financial processes, is committed to becoming the go-to, mission-critical solution provider for SMBs. Their ultimate goal is to create a solution that meets the financial operations needs of SMBs, helping them digitally transform their business and succeed.
Entrepreneurs can learn more about how Bill.com can empower their SMB through their solutions by visiting their website. Overall, SMBs should embrace modern technology to streamline operations, save valuable time, and free up resources to focus on income-generating activities.
