Small businesses are still spending several hours each week dealing with payment issues, according to a new survey from WePay.
The integrated payments business found that while small businesses have upped their technology spend in the last two years, 39% are losing five hours or more on morale-sapping payment admin.
WePay’s State of Small Business Payments 2020 research looked at how small business owners in the US were tackling key challenges in relation to payments, noting that software-as-a-service (SAAS) providers can play a key role in speeding us access to much-needed cash.
- Have a look at the best accounting software
- The best tax software around today
- Check out the best money transfer apps and services
The report found that payment issues have been exacerbated because of Covid-19, with the pandemic adding to small business woes, especially when it comes to receiving cash on time. WePay surveyed 1,000 US small business owners with fewer than 100 employees in February 2020 across the retail, food and beverage, field services, professional services, and e-commerce industries.
Many had a similar story to tell with business owners looking to find a trusted partner to help them with their payments technology. Other key findings from the survey revealed that 62% of small businesses surveyed would consider switching to a bank and software company solution, while 43% would switch solely to a software company.
Meanwhile, 28% of small businesses said they were likely or very likely to make a change to their online payment system in the next 12 months. In addition, 77% of companies with more than $1 million of annual revenue said they would consider working with a solution from a bank and an ISV. 29% of Gen Z respondents trust the bank/software combination to handle financial activity, compared with 21% for Gen X and 20% for Baby Boomers.
Ultimately, even small businesses that use the latest technology face ongoing financial challenges. Payment speed was cited by many as being the top concern and 39% have suffered from speed-related payment issues in the last 12 months. In addition, 25% of those surveyed had been affected by cash flow issues over the last year.
- We've also highlighted the best budgeting software