According to a newly released GoDaddy survey, inspite of the entire affordable and straightforward to exploit apps available today, there’s a large choice of small businesses on the market that just haven’t made the leap to the cloud.
Steven Aldrich, SVP of Applications at GoDaddy, joins us to share and discuss one of the crucial findings from the study, including what working within the Stone Age is costing small businesses which might be slow to step far from the pad and pencil.
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Small Business Trends: May give us a bit of your individual background?
Steven Aldrich: I’m an entrepreneur at heart; paper route, summer storage business in college, built lofts for oldsters with my roommate, started a business and feature been CEO of a pair.
I was fortunate enough to become portion of GoDaddy as we were transforming the corporate to assist really bring individuals in the course of the strategy of successfully founding, running and growing their businesses. I’ve been all in favour of small business my whole life at this stage.
Small Business Trends: Can you focus on the tax survey you simply released?
Steven Aldrich: GoDaddy has historically been called a website name registrar. Meaning, we help small businesses pick the proper name for his or her business after which use that to construct websites, host their website, send email.
The previous couple of years we began to broaden that set of services we’re bringing to small businesses. Among the many services we added was online bookkeeping. We needed to take a pulse of the way small businesses today, are concerned with both, keeping records for his or her business, tax time, on condition that, that’s a timely topic instantaneously and just hear how businesses are doing on those couple of topics and that’s what we’re going to speak about.
Small Business Trends: Can you give us among the high level key findings from the survey?
Steven Aldrich: The person who is no surprise, but always surprises if that is sensible, is that small businesses, ordinarily, are still attempting to maintain an understanding in their business by hand.
We found that over 50% of small businesses still track how they’re doing on either a spreadsheet or pencil and paper. After we talked to small business owners and asked them why they said, ‘I know it’s not perfect but I’m ready to get by.’
Then after we asked them in the event that they were confident in knowing how they were doing. Almost half them said, ‘No.’ Then we said, ‘Are you asking an accountant for help?’ Again, half them said that they never check with an accountant. People who do, only half those seek advice from their accountant greater than every year.
What we found was that spreadsheets and paper are still the guideline, rather then the exception.
Small Business Trends: Wow, I’m seeing here greater than half SMB’s still use pen and paper or a spreadsheet to trace expenses?
Steven Aldrich: Yes, and what meaning is 2 things. One, it’s extra work. After we check with small business owners, they get so concerned with finding customers, delighting those customers, having those customers come again and delivering excellent services and products to them. If you’re doing this work by hand, that is one of many least pleasant tasks that small business owners speak about – keeping the books and doing their taxes.
So it gets pushed to the ground of the stack, and on the end of the day, they collapse into bed. This is often the stuff that doesn’t get entered within the spreadsheet or doesn’t get written down within the ledger or within the expense book.
That means the small business owners not as updated on what’s happening with their business – really come home to roost at tax time. That’s once you must have your revenue and your expenses able to roll so you just pay your justifiable share of taxes, not an excessive amount of and never too little.
In the survey, this time a tremendous percentage of those small business owners, 40%, are taking 6 or more hours and lots of of them actually said it was taking days to only organize the info for his or her taxes. Among the things we all know that suggests is the business owners are either not spending time with their customers, not spending time with their family, or not sleeping. None of these three things are good.
Small Business Trends: What’s the adaptation between people who actually do use a web-based service versus the small businesses not using technology and still operating like they’re within the Stone Age?
Steven Aldrich: We asked those that are using the GoDaddy Online Bookkeeping service, ‘How long did it take you and the way confident were you within the outcome?’ We found it takes six or more hours, even days, using manual methods or spreadsheets.
But folks using online bookkeeping from GoDaddy took two hours on average. That’s since the data is being collected everyday automatically, backstage out of your bank accounts, your mastercard accounts, your PayPal or Etsy, your Amazon or Ebay accounts. Your invoices may be sent and payments tracked automatically.
So, you’ve got an ongoing record of ways you’re doing and you’ve got it at the desktop, you’ve got it for your mobile device. When it comes time to getting your schedule C ready, that’s what small business owners just about all file with their 1040′s, they’re ready and literally they hit the button that asserts schedule C worksheet. They have a look, be certain any uncategorized stuff gets sorted at the moment, after which they’re able to enter that data right into a tax prep program like TurboTax.
Or hand it off to their accountant, which we’ve heard now from a lot of folks saves not just the business owner time, however it also saves the business owner money. Because they don’t should go and pay an accountant to do the entire data entry. Which the accountant doesn’t desire to do anyway. Right? They need to do the price added stuff.
Small Business Trends: There’s quite a lot of information popping out of this study. Are you able to give me one or two things that surprised you inside the results?
Steven Aldrich: While you ask the small business owner. ‘How confident are you that you just know what your tax situation goes to be for the last year?’ Only 15% said that they knew how much they owed.
That’s a awaken call to the community saying, ‘We’ve got to assist small business owners break this Gordian Knot of fear around taxes and never knowing that there’s a neater technique to stay on top of the business.’
There is the flexibility now for that small business owner not to only have their cake and eat it too, but additionally understand how they’re doing while not having to become an accountant themselves. They could spend their time on their business and we’re delighted so that it will join that at GoDaddy.
Small Business Trends: Where can people learn more in regards to the survey and things that GoDaddy is doing specifically for small businesses?
Steven Aldrich: I’d recommend they visit GoDaddy.com . It’s a very terrific place to locate the breadth of factors that we do for the small business owner.
We’ve got the flexibility for folks to get a site, with a view to choose a reputation for his or her business. Get a site. Get hosted. We’ve got some new services around finding new customers called GetFound. We’ve got the facility to run what you are promoting and be more productive with such things as Office365 from GoDaddy and invoicing and bookkeeping tools in addition.
This interview on small businesses not using technology is a part of the only on One interview series with thought-provoking entrepreneurs, authors and experts in business today. This transcript was edited for publication. To listen to audio of the complete interview, click the player above.