How Small Businesses Can Overcome Common Cash Flow Challenges

The 2021 State of Small Business Payments and Cash Flow report, released by Intuit QuickBooks, found that 75% of small businesses in the U.S. feel stressed about cash flow, and nearly a third aren’t using any tools to manage or forecast their cash flows. 

STATEPOINT – A new study reveals that the majority of small business owners and the self-employed share pressing money management struggles.

The 2021 State of Small Business Payments and Cash Flow report, released by Intuit QuickBooks, found that 75% of small businesses in the U.S. feel stressed about cash flow, and nearly a third aren’t using any tools to manage or forecast their cash flows. Not surprisingly, 56% of U.S. small business owners report having made a poor business decision due to concerns about insufficient cash flow.

“Small businesses face unique challenges in the management of their finances. Too often, they track and manage their money in more than one place, which can lead to increased fees, lack of visibility, and wasted time,” says Rob Daniel, director, product management, Intuit QuickBooks.

Part of the problem is that small business banking accounts often come with fees and minimum balance requirements, driving many small business owners to use personal checking accounts, even when a business checking account provides the specific features small businesses need to run their business and pay their employees.

Small businesses can benefit greatly from one streamlined digital financial management solution that integrates all aspects of their business finances -- banking, bill pay, payroll, payments and more – end-to-end. Without this, small business owners can spend hours a week managing their cash flow. In fact, more than 60% of U.S. small businesses spend three hours or more a week managing money for their business.

Daniel says that all-in-one digital banking platforms can be a lifeline for small businesses, helping them holistically manage and plan their finances affordably and efficiently. One example is QuickBooks Cash, a banking services solution aimed at helping drive small business efficiency through technology, which delivers what many other current business bank accounts don’t. It offers no monthly fees, no minimum balance requirements, planning and forecasting tools, and an overall banking experience that works seamlessly with QuickBooks’ additional offerings to enable small businesses to accept payments and pay teams and vendors with automatic reconciliation for easy financial management. Additionally, the bank account’s Envelopes feature makes saving easy, allowing for high-yield interest buckets for routine expenses or long-term goals.

“This tool can also deliver faster money movement and help small businesses discover options for accessing capital. By incorporating the availability of instant payments for eligible QuickBooks Payments transactions and personalized loan recommendations, we’re building a digital tool that helps accelerate the growth of small businesses,” says Daniel.

To learn more about new tools to help your business thrive or for more information about QuickBooks Cash (Intuit QuickBooks is not a bank, banking services provided by and the QuickBooks Visa Debit Card is issued by Green Dot Bank, Member FDIC, pursuant to license from Visa U.S.A., Inc.), visit quickbooks.intuit.com.

Achieving a perfect balance of money in and money out can be a challenge for small businesses. Fortunately, new digital tools are helping small businesses find their footing in a challenging economy.