US small business real sales growth slowed to just 2.8% year-on-year after two years. Pandemic recession
Denver, August 24, 2022 /PRNewswire/ — Xero, the global small business platform, today announced the launch of the Xero Small Business Insights (XSBI) program. usa When Canada, based on anonymized data collected from tens of thousands of Xero customers. Also launched a special his XSBI report. Small business snapshot: America When Canada It provides insight into the impact of business performance and inflation on US small businesses.
Small business growth appears to be almost double the pre-pandemic average, according to the report, but this was largely due to higher prices rather than higher volumes of goods and services sold. In short, it was likely due to inflation and small businesses raising prices to settle market conditions.
Inflation is distorting the numbers
Produced in partnership with Accenture, the report tracks small business performance going back to 2017 and reveals:
sales growth March 2022 The year-over-year (y/y) was 11.3%. While this is not double the pre-pandemic average growth rate of 6.7% (y/y), February 2022.
Inflation is 8.5% (y/y) March 2022 This meant that real sales growth, excluding price effects, slowed significantly to 2.8% (y/y) (and February 2022).
“of March 2022the United States experienced higher inflation than any other major economy1,” Said Chris O’Neill, Chief Growth Officer, Zero. “As borrowing costs rise, expenses rise and customers’ dollar purchasing power declines, it’s more important than ever for small businesses to manage their finances. What’s happening to costs and profit margins?” It helps small businesses to always know exactly where they are, so they can navigate this tricky time well.”
Number of payments is a more positive sign of stability
Fortunately, the report’s insights included better news for small businesses regarding U.S. small business payment times and late payment delays. It has a negative impact and often causes smaller businesses to seek extensions and borrow more. As such, payout times typically reflect how your business cash flow is performing.
Small businesses waited an average of 23.5 days for their bills to be paid. March 2022faster than the 2021 average of 25.0 days.
Payments were delayed by an average of 5.6 days. March 2022 After an average of 7.0 days in 2021.
“It is encouraging to see timely payments to small businesses in the United States. Naturally, this helps support cash flow, which is the lifeblood of any business. and the increased use of online payments.Small businesses are adopting digital solutions,” said O’Neill. “However, small business owners should make sure they stay on top of their accounts and work with trusted advisors to maintain cash flow and profitability as inflation continues to rise for the rest of the year. It should be noted that you must .”
Amit SinghAccenture Managing Director said: Economic Management and Public Policy. The Xero Small Business Insights program provides timely insights into the health of small businesses. The metrics in this report prove the resilience of small businesses in challenging times – Rock Down, social distancing mandates and current unprecedented inflation growth. .”
Launch of Xero Small Business Insights for the United States and the United States Canada was announced at Xerocon New Orleans, one of the world’s premier events for cloud accounting leaders. Accounting and bookkeeping partners and the Xero Apps partner community gather for two days to hear the latest from industry leaders, learn about the latest Xero tools and tools that can help you save time, grow your business, and make a greater impact on your customers. Get expert insight into features. success. Xero also regularly produces Xero Small Business Insights. Australia, England When new zealand. visit xero.com/xerosbi for more information.
for full access Small business snapshot: America When Canada To report and access quarterly updates, please visit xero.com/xerosbi.
Methodology and background
of Small business snapshot: America When Canada The report is based on aggregated and anonymized data from tens of thousands of small business customers nationwide. CanadaIn other words, real data, not research. This report, which includes the insights and analysis contained in the report, was produced by Accenture with assistance from Xero and uses data from Xero Small Business Insights, publicly available data, and Accenture estimates to It is intended to inform and develop policies to support.
Xero partners with Accenture to provide small business performance reports based on aggregated and anonymized customer data. Australia, new zealand and the England For several years. Today, the report expands Xero Small Business Insights to include: usa When Canada.
Every quarter, Xero provides small business performance data. usa When Canada, sales, payment timing and late payments. Data and summary reports are available for free quarterly download. www.xero.com/xerosbi.
zero is a global small business platform with 3.3 million subscribers, including core accounting solutions, payroll, workforce management, expenses and projects. Xero also provides access to financial services and an ecosystem of over 1,000 connected apps and over 300 connections to banks and other financial institutions. Through Xero’s open platform, small businesses can connect to a variety of solutions that help them run their businesses and manage their finances. Xero is included in the Bloomberg Gender Equality Index for the third consecutive year (2020-2022). In 2021, Xero was included in the Dow Jones Sustainability Index (DJSI), powered by the S&P Global Corporate Sustainability Assessment. Xero is FIFA Women’s Football Partner Under FIFA’s new commercial structure.
Accenture is a global professional services company with strong capabilities in digital, cloud and security. Combining unparalleled experience and specialized skills in over 40 industries, Strategy & Consulting, Technology & Operations Services, Accenture His Song. All of this is underpinned by advanced technology and the world’s largest network of intelligent operations centers. Our 710,000 employees serve clients in over 120 countries and deliver on the promise of technology and human ingenuity every day. We embrace the forces of change to create value and share success for our clients, employees, shareholders, partners and communities.
1 Major economies refer to the G7 economies, and CPI data for March can be found at: https://data.oecd.org/
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