Intuit studies small business cash flow, introduces next day ACH payments

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Intuit has added next day funding for ACH payments to its QuickBooks platforms. This is a continuation of the company’s efforts over the last year to speed up money delivery such as same day payroll and next day availability for credit card payments.

A recent survey conducted by Intuit found that 31 percent of small businesses estimate it takes more than 30 days to get paid by customers, clients, vendors or banks. Affordability in electronic payments also matters a great deal for small businesses. Almost half of small businesses surveyed by QuickBooks last year said they accept payments through cash and check, and the biggest barrier to moving to electronic payments is the cost, which can cut into the very thin profit margins of small businesses.

Today, QuickBooks Payments processes a reported $37 billion in volume. Intuit leverages machine learning, risk and data insights to deliver features like next day deposit and affordable processing, while helping to protect small businesses from fraud.

“The QuickBooks team is very focused on delivering innovation that improves cash flow outcomes for small businesses because we know how pivotal it is to their success. We are proud of the innovations we have launched across our platform to improve cash flow — from QuickBooks Capital to Same Day Payroll,” said Rania Succar, business leader for QuickBooks Payments and Capital, Intuit, in a statement. “With the addition of next day payments for credit card and ACH, we are giving small businesses and the self-employed a powerful suite of payments tools that allows them to get paid both fast and affordably.”

The state of small business cash flow

Intuit also released a continuation of the recently published “The State of Small Business Cash Flow,” a global study focused on the behaviors, attitudes and status of cash flow challenges experienced by small businesses and the self-employed. The report found that the availability and ability to process payments is core to small businesses’ cash flow. Other findings from the report include:

  • Forty-four percent of small business owners said that the biggest obstacle to getting paid is customers not paying on time, followed by credit card companies not paying fast enough (35 percent) and customers having insufficient funds (28 percent).
  • The method of payment used by a customer is significant and varies based on the size of payment. Sixty percent of small businesses still get paid by check, especially when it comes to larger payments.
  • A third of U.S. small business owners estimate their company currently has more than $20,000 in outstanding receivables, while the average U.S. small business has $53,399 in outstanding receivables.
  • Nearly half (47 percent) of small business owners’ companies manually calculate (such as using Microsoft Excel) to track their bill payments, while 37 percent use an accounting software, and 33 percent use an accountant or financial professional.
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