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Small business technology has come a long way—from ancient clay tablets to today’s powerful cloud solutions and payment solutions. But even with all these advancements, are you still finding it tough to fully leverage the latest tools for your business? You’re not alone! Here are five common challenges small business owners face with technology and, more importantly, how you can tackle them head-on.
5 challenges small businesses must tackle
Sticking to old habits
Even though we’re in the “Age of Intelligent Accounting,” many small businesses are still using manual processes or outdated software. Surveys show that less than 50% of small businesses use general accounting software, and even fewer have adopted advanced tools like AP automation or cloud-based systems.
Why? Change can feel overwhelming, or maybe you think, “If it’s not broken, why fix it?” But sticking to old methods means missing out on major time and cost savings.
The solution? Start small. Try cloud-based accounting software—many offer free trials. Get your team involved with training and support to make the transition smoother, and you’ll be setting your business up for greater efficiency and better financial insights.
Time mismanagement
If you’re a small business owner, it’s easy to feel swamped by back-office tasks like accounting and cash flow management. A QuickBooks survey found that many owners spend more time on these tasks than they’d like, with only 30% feeling “highly automated.” Just imagine how much more you could achieve if those hours were spent growing your business instead of drowning in paperwork!
Modern payment solutions with automated payments and automatic reconciliation can be game changers. With 4-way sync, everything—your payments, accounting software, and bank accounts—stays connected and up to date. This ensures you’re always on top of your finances, without the manual hassle, freeing you up to focus on what really matters: growing your business.
The cost conundrum
One major reason small businesses hesitate to adopt technology is the cost. But here’s the thing: modern payment platforms like Forwardly have no monthly subscription fees and offer extremely low transaction processing costs. The real cost is in *not* automating—every hour spent on manual tasks is time and money lost. Automating can save you 5 to 7 hours a week, giving you more time to focus on other operational activities.
Not leveraging tech to its full potential
Many small businesses aren’t getting the most out of their apps. For example, 70% don’t automate scheduling, which can lead to compliance issues and higher employee turnover. Another 60% aren’t automating payroll, risking costly errors and legal trouble. And only 21% have integrated their accounting software with invoicing apps, missing out on chances to improve cash flow and cut down on late payments.
Take a look at the tasks that eat up most of your time—like scheduling, payroll, or invoicing—and see how automation could help. Forwardly makes it easy with seamless integrations for bill payments and invoicing, plus faster payment options like instant payments and same-day ACH transfers. This means fewer errors, better cash flow, and more time to focus on growing your business.
Underestimating automation benefits
Automation isn’t just about replacing old methods—it’s about transforming your business. Soon, 80% of accounting and finance tasks will be automated. By embracing this shift, businesses can cut errors by up to 95%, speed up processes by up to four times, and save up to 80% in costs. The low cost of cloud-based solutions and their high return on investment make them a must-have for any business looking to streamline operations.
Going back to the costs of failing to automate:
- 70% of small businesses aren’t using apps to help them automate scheduling — which not only wastes time, it puts these businesses at risk of violating labor laws and increasing turnover.
- 60% of small businesses aren’t automating their payroll — let’s just say that in the history of bad ideas, this is one of them. Hello, tax laws anyone?
- Only 21% of small businesses have integrated their accounting software with invoicing apps — considering late payments are a top business concern and cash flow headache, this should be a “no-brainer.”
Any small business accountant or bookkeeper reading this piece is probably saying, “Yes, yes, yes!” to all the points above. But how do we turn the tide and get small businesses to take advantage of the simplicity and effectiveness that accounting tech offers?
The role of accountants and bookkeepers
Here’s where accountants and bookkeepers come in. They can be a huge help in navigating the world of technology, ensuring you stay compliant with tax laws and optimizing your financial processes. By recommending and setting up the right tools, they can help you see the benefits of automation and make your life a whole lot easier.
Empowering small businesses
At Forwardly, we’re here to make your business life easier and more efficient. Our tools are designed to simplify your accounts receivable (AR) and accounts payable (AP), helping you get paid on time and cutting down the hours you spend on manual tasks.
With Forwardly, you get more than just a tool; you get a partner in your success. Let us take care of the financial details so you can focus on reaching your goals and making your business thrive. Say yes to technology with Forwardly and enjoy a smoother, stress-free business experience.
