Small business owners have a lot on their plates, from marketing their products or services to ensuring an optimal customer experience to strategizing on how to grow their company in cost-effective ways. They may not have extra hours to spend poring over industry insights on a daily or even weekly basis.
And that’s why we’re here! At Accountinuity, we take pride in supporting our small-business clients as they grow and strengthen their companies. While that typically means providing outsourced accounting services and financial leadership, we also like to be a set of eyes and ears for small business owners, keeping them up to speed on the latest research, resources, and regulations.
Read on for six insights affecting small businesses this year, along with tips on how to use this information to protect the company you’ve worked hard to grow from the ground up.
1. More than half of small business owners (51%) say they have an accountant for their business, according to new survey data from QuickBooks.
Small businessowners site peace of mind, accurate tax preparation and filing, improved financial decision-making, better budgeting, and better cash flow management as the top benefits of working with an accountant. More than 1 in 4 small businesses who use an accountant said their business is experiencing high growth. Among small businesses that don’t use an accountant, only 1 in 10 report high growth.
If you’re a small business owner who’s contemplating hiring an accountant but you’re not sure you need one full-time, outsourcing some of your accounting tasks can be a great way to test the waters. By partnering with Accountinuity, for example, you can use only the services you need, scaling up or down at any time.
2. QuickBooks’ survey also found that more than half (53%) of small business owners say they’re using AI tools to run their business.
These tools save them time and money, increase productivity, reduce errors, and improve customer service experiences. Small businesses looking to get started with AI may explore tools, applications, and plug-ins that help:
* Automate routine, time-consuming tasks
* Create written and visual content
* Execute more targeted marketing campaigns
* Deliver 24/7 customer support via an automated chatbot
* Forecast monthly and quarterly sales figures
* Analyze data to produce actionable insights
* Detect fraudulent behavior
The best part: exploring AI doesn’t have to break the bank. Look for AI-powered features popping up in the platforms you use every day, such asQuickBooks, Google Ads, Microsoft Outlook, and Zoom.
3. A quarter of all U.S. employees work remotely at least part of the time, according to the U.S. Chamber of Commerce.
While this is nowhere near the number of people who worked remotely during the pandemic, it’s still higher than the pre-pandemic norm, a good indicator that remote work is here to stay for years to come.
That said, many types of businesses cannot function without in-person work, and many of them are small businesses like your local coffee shop, credit union, or car dealership. According to the Chamber, the highest propensity for in-person work exists in the hospitality and food services, transportation, and retail trade industries, where nearly80% of staff work fully on-site.
To navigate the labor shortages that come with a heightened focus on remote work, the Chamber encourages small businesses to grow their hiring pools by removing barriers to entering the workforce. For example, provide access to childcare, expand benefits packages, participate in second chance hiring, and extend upskilling and reskilling opportunities to all employees.
4. Small businesses are three times more likely to be targeted by cyber criminals compared to larger companies, according to the Cybersecurity & Infrastructure Security Agency.
It’s no surprise that 60% of small businesses say cybersecurity threats, including phishing, malware, and ransomware, are their top business concern, ahead of supply chain breakdowns and another pandemic, according to survey data from MetLife and the U.S. Chamber of Commerce.
Luckily, many resources are available to help small businesses protect their companies from a cyberattack. The National Institute of Standards and Technology (NIST) recently published a quick-start guide to help small businesses navigate the new NIST Cybersecurity Framework 2.0. The framework is voluntary guidance that helps organizations better understand, assess, prioritize, and communicate their cybersecurity efforts.
The FCC has also shared a set of cybersecurity tips for small businesses, which offers guidance on employee training, machine and data protection strategies, secure Wi-Fi networks, and company credit cards.
5. Removing access to offsite data hikes the cost of acquiring new customers by 35%, according to research from Northwestern University.
Advertisers rely on consumer data for ad targeting and attracting new customers. But new data-privacy regulations, like Apple's opt-out prompts for iPhone users, have disrupted their ability to track consumers across apps.
New research suggests this regulation disproportionately affects small businesses. In fact, the impact of removing access to offsite data has a five-times greater impact on small businesses than it does on larger companies.
On top of this, businesses that operate in multiple locations are navigating a maze of state data privacy regulations. Adhering to multiple states’ laws is both financially burdensome and time-intensive for small businesses. To offer relief, some lawmakers are proposing a uniform national privacy law that requires all businesses to protect consumer data no matter where they live. In the meantime, small businesses should be thoughtful and transparent about the data they collect and ensure they deliver value in exchange for customer data like email addresses and phone numbers.
6. Companies established before January 1, 2024, have until the end of the year to file their initial Beneficial Ownership Information Report with FinCEN.
Under the new Corporate Transparency Act, which aims to combat illicit financial activities like tax fraud and money laundering, LLCs and corporations are required to file a beneficial ownership information report (BOIR) with the Financial Crimes Enforcement Network (FinCEN) by January 1, 2025.
Not complying with the regulation could result in costly fines of up to $10,000. If your business needs to catch up on the new regulation, the U.S. Chamber of Commerce has a helpful guide on how to file a BOIR for your small business.
Bookkeeping and way beyond
Small businesses know they can trust Accountinuity to deliver clean and accurate monthly financials, fill gaps on accounting teams, and provide financial leadership wherever it’s needed. What they may not know is that we’re thinking about your small business well beyond the ledger. By keeping current on the news and regulations that impact our small-business clients, we help them navigate change and protect their financial futures.
Want to learn more about how we work? Book a complimentary consultation with Accountinuity today!
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