Small businesses today have more to worry than those in the past decades like fuel costs, cash flow, and interest rates. This is the main reason why small business owners are losing their confidence on the economy. It has been noted that their confidence levels have gone down to very low levels not seen since the global financial crisis.

The MYOB Business monitor report for March showed that only 19 percent, or less than one-fifth, among small business owners and managers have faith that the economy will improve in the next 12 months.

The said survey proves to be the lowest since March 2009 which was the time that the economy started recovering from the financial crisis.

Among the 1,043 respondents, 14 percent said that their primary concern is the "extreme pressure" that are placed on businesses due to increasing prices of fuel. This problem is considered the chief concerns among small businesses considering that the average weekly retail price of petrol has risen by 10 cents a liter since February.

Other issues that concern business owners are on cashflow and interest rates.

"These results paint a stark picture of the financial and emotional challenge facing small to medium business owners, their families and their staff over the next year," said Tim Rees, Chief Executive of MYOB.

"They will need significant support from their networks and the government in order to swim strongly through these challenging times", he added.

The business sector’s growth has slowed down as seen by the data released by the Australian Bureau of Statistics wherein business loans had dropped 8.4 percent in February.

Additionally, construction and trades have also reported lower revenues as well as about 45 percent of those engaged in manufacturing and wholesale enterprises have felt the same thing.

With the continuing problems that SME’s are facing, it is more important today to use
accounting software, especially online accounting software, to ensure quicker and more accurate transactions. Using online accounting programs can result to more satisfied customers and a wider customer-base.


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