Business Resilience
4 ways SMBs build and maintain financial health
A Citizens survey1 of SMB leaders reveals the tools and tactics companies use to remain resilient and optimistic.
Their habits are worth examining, since growth outlook increases with resilience:
0%
of resilient businesses double-digit growth in 2023
Resilient SMBs $500k to $25k annual revenue.
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Make it easier for customers to buy.
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Make it easier for customers to buy.
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Speed up invoicing and collections.
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Speed up invoicing and collections.
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Use data insight for cash management.
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Use data insight for cash management.
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Safe customer and company data.
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Safe customer and company data.
The 4 Financial Habits of Resilient SMBs
1. Make it easy for customers to buy
Extremely resilient SMBs.
0
%
more payment options than other SMBs
Top digital tools: how resilient SMBs let customers pay
Most SMBs accept cash, checks, cards and digital P2P payments.
Resilient SMBs also use more digital tools than other SMBs to lower payment costs and simplify payment data tracking.
Direct payments to a bank.
Visa or Mastercard Direct.
Point-of-sale (POS) for electronic payments.
Contactless point of sale.
Invoicing software.
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Domestic electronic receivables.
International electronic receivables.
These tools aren’t just for larger SMBs. Regardless of company size, extremely resilient SMBs offer more ways to pay:
2 in 5 SMBs <$500K in annual revenue
invoices online via invoicing software
3 in 5 SMBs $500K - $5M in annual revenue
invoicing software from a bank
Customer payment how-to information
"Customers today want more ways to pay, and resilient SMBs are meeting that need to drive revenue. The digital tools they’re offering also simplify the job of gathering and analyzing important customer payment data. That makes it easier to make informed decisions that fuel business growth."
- Citizens SME, name TK
2. Speed up invoicing and collections
Extremely resilient SMBs are digitizing for quicker access to funds and simplified cash management.
Top digital tools: how resilient SMB invoice and collect
Online bill payment.
Online invoicing.
Automated payment and collections reminders via email, text, or call.
Domestic electronic payments.
Domestic electronic receivables.
Extremely resilient SMBs, even the smallest companies, use the most digital invoicing and collections tools.
+
SMBs
<$500K
in annual revenue
use more automated payment and collections reminders via email, text, or call
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SMBs
<$500K
in annual revenue
use more automated payment and collections reminders via email, text, or call
+
SMBs
$500K - $5M
in annual revenue
use significantly more automated payment tools
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SMBs
$500K - $5M
in annual revenue
use significantly more automated payment tools
"The most resilient SMBs of all sizes are digitizing to bill and track funds so that they can bring them in quickly. Using these tools streamlines cash management and frees up time for leaders to focus on running their companies. This is ultimately why they’re more resilient."
- Citizens SME, name TK
How to access funds quickly
3. Use data insight for cash management
Consistently gathering and analyzing company financial data can be daunting for SMBs with more responsibilities than available time. But, resilient SMBs recognizing the importance of using data insight to manage cash flow.
Resilient SMBs
4x more likely to say “We are extremely effective at analyzing financial data.”
Top digital tools: resilient SMBs free up time for company priorities by using these cash management tools:
4x more likely to say “We are extremely effective at analyzing financial data.”
Top digital tools: resilient SMBs free up time for company priorities by using these cash management tools:
Accounting software.
Accounting software.
Self-service banking tools.
Self-service banking tools.
A platform or software application that is integrated with a bank.
A platform or software application that is integrated with a bank.
4x more likely to say “We are extremely effective at analyzing financial data.”
Top digital tools: resilient SMBs free up time for company priorities by using these cash management tools:
Even the smallest resilient SMBs share this skill.
Even the smallest resilient SMBs share this skill.
And, regardless of company size, extremely resilient SMBs are also using the following digital tools in greater numbers than less-resilient businesses:
SMBs <$500K in annual revenue
SMBs <$500K in annual revenue
SMBs $500K - $5M in annual revenue
SMBs $500K - $5M in annual revenue
SMBs <$500K in annual revenue
SMBs $500K - $5M in annual revenue
SMBs $500K - $5M in annual revenue
- Resilient SMBs with less than $500,000 in annual revenue prioritize —
- Digital POS system such as Square, Shopify, or Toast.
- platform or application integrated with a bank.
SMBs <$500K in annual revenue
SMBs <$500K in annual revenue
SMBs $500K - $5M in annual revenue
- A platform or software application that is integrated with a bank.
- An ERP platform.
Where resilient SMBs turn for financial advice
Resilient SMBs use all sources of information and advice in greater numbers than less-resilient SMBs. Top five sources of advice:
Self-service banking tools.
CPA or accountant.
Business banker.
Bookkeeper.
Financial service vendor.
How to have better financial insight
4. Safeguarding customer and company data
Extremely resilient SMBs understand that it’s essential to have financial fraud protection measures in place:
0%
“protecting against financial fraud from employees is a priority”
0%
“protecting against financial fraud from employees is a priority”
How resilient SMBs protect data
Using antivirus software and business credit cards is the top fraud protection tactic for most SMBs.
Extremely resilient businesses also use more additional tools.
Almost
2x
as likely to use:
Cash management
Electronic receivables
Cash management
Electronic receivables
Even smaller SMBs use more tools beyond antivirus/cybersecurity software:
SMBs <$500K in annual revenue
SMBs <$500K in annual revenue
SMBs $500K - $5M in annual revenue
SMBs $500K - $5M in annual revenue
SMBs <$500K in annual revenue
SMBs $500K - $5M in annual revenue
SMBs $500K - $5M in annual revenue
- 2x as likely - electronic receivables such as lockbox network, ACH, EDI, and wire transfer, to protect against financial fraud.
- Use more - digital P2P payments, credit cards, digital POS, and online invoice and bill payment the most to fight fraud.
SMBs <$500K in annual revenue
SMBs <$500K in annual revenue
SMBs $500K - $5M in annual revenue
- Use more - business credit cards, online invoicing and bill payment, automated bookkeeping tasks, electronic bill payment such lockbox network, ACH, EDI, and wire transfer; and remote capture.
"Focusing on financial fraud prevention provides a competitive advantage. Loss or damage to company or customer data can stall momentum and growth, or worse. Busy SMBs are recognizing that putting tools in place to stop financial fraud before it starts is just a fundamental part of good company and cash management. "
- Citizens SME, name TK
How to protect your company and customer data