A new survey from online accounting software provider Xero found that nearly 90 percent of small businesses are forecasting an increase in revenues next year, while 21 percent are expecting growth of more than 100 percent.
The optimism among small business owners for 2015 is based on significant growth their businesses achieved this year. Of the more than 300 small business owners surveyed, 81 percent experienced revenue growth in 2014, while 22 percent reported gains of more than 100 percent.
Also, small business owners who worked this year with a professional accountant, such as a CPA, and used online accounting software saw their company?s revenues increase by 16 percent compared to business owners who did not work with an accountant but used an online accounting platform, according to the survey.
?As a company that makes online accounting software, we hear every day from business owners how having an accurate, up-to-date view of their financials is key to their growth. It?s great to see the actual data support this with significant revenue gains when business owners work with an accountant and use accounting software,? Xero US President Jamie Sutherland said in a written statement.
Other key survey results included:
- Eighty-seven percent of small business owners are ?content? to ?extremely satisfied? with how their business is performing.
- Sixty-eight percent of small business owners never or only occasionally take a risk, while 32 percent reported almost always taking a risk. Risk-takers experienced revenue growth of 49 percent over the past 12 months versus 43 percent for non- or occasional risk-takers. Risk-taking small business owners are also more optimistic, forecasting 63 percent growth over the next year versus 51 percent for those who are risk-averse.
- Fifty-one percent of small business owners plan to hire now and through 2015.
- Small business owners saw a 24 percent increase in revenue when they paired an outside accounting professional with an internal one and used online accounting software versus 16 percent who worked with only one accountant.
About the survey:
The online survey was conducted to 304 small business owners who use Xero online accounting software in the United States. The survey was conducted on behalf of Xero by Radius Global Market Research from late March through early April 2014.
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