SOURCE: Xero

Xero

September 30, 2014 08:00 ET

Xero Survey Finds Growth, Satisfaction and Optimism Soar for Small Businesses Into 2015

More Than 80 Percent of SMBs Grew Revenue in the Past Year With 22 Percent Growing More Than 100 Percent

SAN FRANCISCO, CA--(Marketwired - Sep 30, 2014) - Xero, a global leader in online accounting software, today announced results of a survey of U.S. small businesses (SMBs) revealing significant growth in 2014 and increased business confidence heading into 2015. 

With 81 percent of small businesses experiencing revenue growth this year, 22 percent are seeing gains of more than 100 percent. For 2015, nearly 90 percent forecast a revenue increase, with 21 percent expecting to grow more than 100 percent. This data shows that SMBs are having a fiscally healthy 2014 with no signs of stopping in the new year. 

Growth, Satisfaction and Risk-Taking
As a result of such significant growth, SMBs are confident, happy and taking risks:

  • A Certainty of Satisfaction: 87 percent are content to extremely satisfied with how their business is performing.
  • Risky Business: 68 percent of small businesses never or only occasionally take a risk while 32 percent will almost always take a risk.
  • Nothing Ventured, Nothing Gained: These risk takers have experienced a 49 percent growth in revenue over the last 12 months vs. 43 percent for non or occasional risk takers.
  • Glass Half Full: Risk taking SMBs are also more optimistic, forecasting 63 percent growth over the next 12 months vs. 51 percent for those who are risk averse.

Smart Staffing = Better Bottom Lines
In order to achieve 2015 goals and grow their businesses, SMBs are looking to expand their teams and invest in top talent such as accounting professionals:

  • Hiring Now and in the Future: 51 percent of small businesses plan to hire now and through 2015.
  • Employing an Accountant Pays Off: SMBs who use an accounting professional with online accounting software experienced a 16 percent increase in revenue over businesses that do not work with an accountant but use online accounting software.
  • Using More Accountants Equals More Revenue: When SMBs pair an outside accounting professional with an internal one and use online accounting software they increase the prior mentioned revenue gains by 50 percent -- seeing a 24 percent increase in revenue vs. 16 percent when working with only one accountant.

"We're thrilled to see that small businesses are growing, thriving and hiring," said Jamie Sutherland, Xero's U.S. President. "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."

About Xero
Xero is beautiful, easy-to-use online accounting software for small businesses and their advisors. The company has over 334,000 paying customers in more than 100 countries around the world. Xero seamlessly integrates with over 350 best-in-class business tools, and was recently ranked No. 1 by Forbes as the World's Most Innovative Growth Company.

Survey Methodology
A survey conducted online to 304 small business owners that use Xero online accounting software in the US. The survey was conducted on behalf of Xero by Radius Global Market Research in late March/early April 2014.

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