Canadian small businesses face a number of challenges in the shifting economy, including accounting management. It can be difficult for owners to access as much capital as they need to run their organizations, and owners have been slow to hire new employees.
Since smaller companies need to manage finances and may not have as many resources for hiring employees as larger organizations, they can rely on small business accounting software to keep an eye on finances. Not all small-business owners are skilled financial professionals, and automated processes can help them prevent errors.
Canadian small-business owners distrust banks
The Canadian Federation of Independent Small Businesses recently surveyed owners about their banks and found credit unions often did a better job of catering to small enterprises compared to larger financial institutions. Of large banks, Scotiabank and Bank of Montreal had the highest rankings from Canadian small-business owners. The Canadian Imperial Bank of Commerce had the worst rating from entrepreneurs.
"Banks need to pay close attention to the report's findings if they are serious about serving the small business market," said Doug Bruce, vice president of research at CFIB. "Overall, credit unions do the best job of serving entrepreneurs, while Scotiabank and BMO are tied in receiving the highest overall scores among the big banks. CIBC is the worst big bank for small business - that's the same as it was in 2010, when we issued our previous banking report."
Entrepreneurs were asked to rank their banks based on the availability of financing, fees, customer service from account managers and accessibility factors, such as branch locations, clarity of bank statements and usability of online banking, according to The Financial Post. CIBC had the worst ratings from small businesses with fewer than five employees, and its market share dropped to 9.9 percent of all small and midsized businesses.
Small-business owners were more likely to rely on credit unions for their banking needs instead of larger financial institutions. Micro-companies were more likely to be rejected for loans by big banks, and they pay higher interest rates. Entrepreneurs may need to use their own savings or credit card financing, The Financial Post said.
Facing complex financial challenges is part of running a small business for many owners. Since entrepreneurs have expressed growing distrust for large banks, small business accounting software can help owners manage their finances with ease.