Between you and me, how is your business doing financially? If you answered with something along the lines of “not great,” you are certainly not alone. Cash flow is an issue for businesses all around the world, as a recent report from Intuit makes all too clear. We know that investing in a managed service provider may not be at the top of your list right now, but moving your IT to an MSP can actually save you money in the long run.
Intuit QuickBooks released the results of a study performed to establish where small businesses stand as far as their cash flow is concerned. This study, entitled The State of Small Business Cash Flow, revealed that cash flow issues have had a significant impact on businesses. Having surveyed 3000 small businesses with fewer than 100 employees in the United States, United Kingdom, Canada, India, and Australia, Intuit was able to identify a few major business concerns. If you’re struggling due to cash flow, see if these issues below apply to your business.
Common Issues for Businesses Struggling Due to Cash Flow
According to this survey, 61 percent of small businesses have regular issues with their cash flow, with 42 percent of this group having had a cash flow issue within the past year. Of these businesses, 32 percent have been short on capital – rendering them unable to pay for one of their other obligations, like loans, vendors, or even their employees. Over two-in-five small business owners have faced the prospect of being late with their employees’ payments, while 32 percent have been forced to do so. Hearing this, we hope you know you are among many other businesses having similar problems.
In the United States specifically, insufficient cash flow has contributed to considerable missed opportunities. Businesses have lost an average of $43,394 by passing on projects or sales thanks to these insufficiencies, more than half having lost at least $10,000. If you could take ahold of that money and projects, how would that help your business?
The Underlying Cause
According to the survey, small businesses in the U.S. average a total of $53,399 in outstanding receivables. That’s $53,399, owed to the business, that has yet to be paid. On average, businesses wait 29 days before their payments are received. It is this delay that causes the major issues outlined above in businesses.
If you’re tired of waiting around to be paid for your services, reach out to Symmetric IT Group. We have the expertise to identify and implement the solutions you need to efficiently invoice your clients and customers, providing them with flexible payment options. Streamlining your IT and bringing you the IT support your business needs is something we are here to do. Reach out to us at (813) 749-0895 and check out our managed IT services page to learn more!