Economic growth is dependent on a wide range of factors, one of which is optimism. When business leaders and consumers have positive feelings about their financial futures, they tend to make important choices more frequently. For company leaders, this likely means taking steps toward expansion, ordering more inventory and hiring additional workers, while consumers' rising confidence may show itself in the form of spending.
For business leaders to turn optimism into results, they need to implement the proper tools. If an organization continues to use archaic methods for business management, such as manually entering data in spreadsheets, they may fall behind their competitors. By using accounting software, firms can ensure they're accurately keeping track of all revenues and expenses. This is essential for sustaining growth, as knowing how money is flowing and if budget guidelines are being met is essential to strong decision-making.
Confidence is returning
Many company heads are anticipating improvements in 2013. According to a survey of more than 1,200 small business owners by Manta, 79 percent of organization leaders are optimistic about the second quarter. While positive sentiments about the upcoming months is certainly a good sign, it may not translate into bringing on more staff members for many firms, as only 5 percent announced they plan to hire. Instead, 26 percent of executives expect to allocate revenue increases into social media, online advertising and marketing programs.
"As a highly pragmatic and time-constrained group, small business owners are strategically adopting platforms that show real results for their business," said Pamela Springer, CEO of Manta. "However, social media is not a stationary phenomenon. As SMBs shift from the experimental stage to a results-focused phase, their social media usage will evolve to maximize the value."
One good thing about small business accounting software is that it allows leaders to focus more of their energy on projects other than financial operations management. High-tech solutions can automate many processes that used to be a significant drain on their time.
Additionally, a survey of 100 investment managers by Northern Trust found that others in the business sector are anticipating economic boosts. Nearly 40 percent of respondents expect that job growth will quicken during the next six months, and 46 percent said the U.S. economy as a whole is likely to improve in that time.