GoDaddy recently announced the results of a survey of 600 SMB owners to determine how small businesses manage finances throughout the year and how they prepare for tax time. I was able to speak with the company’s SVP of Business Applications, Steven Aldrich about the survey findings, as well as GoDaddy’s answer for its SMB customers.
Steven told me their study found that 40% of SMBs take 6 or more hours (and some, days) to complete their taxes, and that 86% do not know exactly how much they will owe at tax time (12% not at all, 74% “ballpark amount”). In addition, 52% of respondents said that they manage their finances with either spreadsheets or pencil and paper. As you can imagine, this opens the door for standard data entry errors. In fact, 25% of respondents said that they actually lost track of whether or not a client paid for their services.