New research from global cloud-based small business platform Xero reveals a notable gap in financial literacy among U.S. small business owners.
Despite 55% of small business owners rating their financial literacy as high, half (50%) actively face fiscal challenges in their business due to a lack of it.
While many surveyed owners did not initially consider financial concerns a top priority when starting their business, they found them to be an issue once they launched the company.
Exactly half of the owners surveyed encountered fiscal challenges due to a lack of financial literacy, with a staggering 15% noting they still need to recover.
In this case, financial literacy (or lack thereof) spans a wide spectrum. Respondents said they struggle with optimizing tax strategies (18%), implementing and sticking to budgets (16%), interpreting financial metrics (16%) and implementing cash flow management (16%).
With only 16% of respondents actively using an accountant or financial advisor, many are missing out on the opportunity for continued, extensive growth and organizational resilience. See more findings.