Sage Financial Capability Survey: What Small Business Owners Don't Understand Could Be Holding Them Back

Sage Financial Capability Survey: What Small Business Owners Don't Understand 
Could Be Holding Them Back 
Sage 50 Accounting 2014 Helps Small Businesses Gain More Insight Into
and Better Manage the Financial Health of Their Business 
ATLANTA, GA -- (Marketwired) -- 04/17/13 --  Sage North America today
announced the availability of Sage 50 Accounting 2014-U.S. Edition
for small businesses. The 2014 release coincides with National
Financial Capability Month, and Sage North America today also
released findings of a survey to determine the "financial literacy"
of small business owners by gauging their overall perceptions,
knowledge and habits with regard to financial management, resources
and compliance. Sage, a leading provider of business management
software and services to more than 6 million small and midsized
businesses worldwide, conducted the survey in March 2013 with more
than 700 small business owners.  
The Sage Financial Capability Survey reveals that while most small
businesses can identify the cost that has the biggest impact on their
business, 15 percent still struggle to recognize it. However, more
than half (54 percent) of small business owners recognize that cash
flow is the aspect of financial management that is most important to
their business' success. 
The survey also examined the differences in financial literacy
between those small business owners who use accounting software to
help manage their day-to-day operations versus those small business
owners who do not. Both accounting software users and nonusers
realize that cash flow is an important factor for their business'
success (38 percent and 39 percent, respectively) and consider
accounts payable (74 percent), accounts receivable (70 percent and 71
percent, respectively) and invoicing/billing (69 percent and 74
percent, respectively) to be strengths, meaning they believe they can
perform these tasks adequately. 
However, small business owners who use accounting software have a
different set of concerns when it comes to their financial
capabilities. Accounting software users report that payroll and
inventory management are their top concerns (52 percent and 50
percent respectively), while nonusers report account receivables,
accounts payables, payroll, inventory management as well as invoicing
being their main concerns (54 percent, 49 percent, 49 percent, 49
percent and 46 percent respectively) despite reporting that they
believe these activities are also their strengths. 
"It's no surprise that most small business owners wear numerous hats
and tend to take a very hands-on approach with managing various
aspects of their business, but based on the Sage Financial Capability
Survey, those who use accounting software seem to be more confident
and have a better understanding of what they are capable of managing
and what they need to learn more about to make their business a
success," said Connie Certusi, executive vice president and general
manager at Sage Small Business Solutions. "While there's no doubt
that those small business owners who don't use accounting software
are successful, based on the survey, it's indicative that there are
several business activities that they need to be more versed in. They
are potentially holding themselves back from even more success by not
truly understanding cash flow and how to manage the financial health
of their business." 
Small businesses need to comply with many rules and regulations
imposed by all levels of government, and income tax is the activity
that small business owners are most concerned about complying with
(23 percent), followed by social security/payroll taxes (16 percent).
Small business owners who use accounting software are significantly
more comfortable with complying with income tax rules than
nonaccounting software small business owners, with only 17 percent
reporting it as a concern versus 29 percent.  
"The sheer number of changes to the tax system over the past 13 years
is astonishing," said Certusi. "With more than 4,400 legislative
changes(i) to the tax code, small business owners are struggling to
stay current. Our survey indicates that complying with tax rules and
regulations is a concern for small business owners, especially those
who do not use accounting software. As the tax code continues to
change and grow in complexity, it's crucial for small business owners
to get the appropriate guidance from an accounting or bookkeeping
professional or use accounting software to help ensure they can
confidently meet any compliance challenges they may face." 
To help small businesses gain better control of their operations and
remain compliant with ongoing tax code changes, the Sage 50
Accounting 2014 product line is now available. A perennial favorite
of small businesses and accountants, and a part of the broad
portfolio of Sage business management solutions serving small to
medium-sized businesses worldwide, Sage 50 Accounting 2014-U.S.
Edition delivers many benefits and features that small businesses
need to maximize their investment and gain a better insight into the
overall financial health of their business. 
New features of Sage 50 Accounting 2014 include enhancements to
accounts receivable, making it faster and easier to record
outstanding customer invoices, streamlined accounts payable
processes, and increased advice and guidance through Sage Advisor
technology.  
Sage 50 Intelligence Reporting is also available for the Sage 50
Accounting 2014 line, giving small business owners the ability to
gain sharper focus, access and insight into their business
information.  
Sage 50 offers industry-specific versions for manufacturers,
distributors, construction businesses and accountants, as well as
Sage 50 Quantum Accounting 2014 for businesses with more advanced
needs.  
Sage 50 is one of the entry points into the Sage portfolio of
business management solutions that support long-term business needs
and includes Sage 100 ERP, Sage 300 ERP, Sage 500 ERP and Sage ERP X3
solutions as well as a host of complementary connected services.  
Pricing and availability 
 The Sage 50 Accounting 2014 product line
is now available direct from Sage and will be available through both
in-store and online retailers in June. The suggested retail price for
Sage 50 Accounting 2014 starts at $269.99. Call 800-228-0068 for more
details.  
The Sage Financial Capability Survey was conducted in March 2013
among 386 Sage customers and an independent sample of 327 small
business owners who do not use accounting software. All respondents
are U.S. business owners of organizations with fewer than 100
employees. The margin of error is +/- 5% with a confidence level of
95 percent. 
Additional findings from the study and an infographic are also
available.  
About Sage
 Sage is a leading global supplier of business management
software and services for small and midsized businesses. The Sage
Group plc, formed in 1981, was floated on the London Stock Exchange
in 1989 and now employs more than 13,500 people and supports more
than 6 million customers worldwide. For more information about Sage
in North America, please visit the company website at NA.Sage.com.
Follow Sage North America on Facebook, Facebook.com/SageNorthAmerica,
and Twitter, Twitter.com/SageNAmerica. 
Copyright2013 Sage Software, Inc. All rights reserved. Sage, the Sage
logos, and the Sage product and service names mentioned herein are
registered trademarks or trademarks of Sage Software, Inc. or its
affiliated entities. All other trademarks are the property of their
respective owners. 
(i)
http://www.irs.gov/uac/Commissioner-of-Internal-Revenue-Douglas-H.-Shulman's-Keynote-Speech-Before-the-AICPA-Fall-Tax-Meeting 
Press Contact:
Yvonne Yuen
Sage North America
604-207-3563
Yvonne.Yuen@sage.com 
 
 
Press spacebar to pause and continue. Press esc to stop.