A new survey of 500 Canadian accountants revealed inflation as the most significant financial threat to Canadian small-to-midsize businesses (SMBs).
Conducted on behalf of Plooto, a payment automation solution for SMBs, the survey provided a snapshot of accountants' perspectives on inflation, provincial support, and financial mistakes.
The survey highlighted that 54.5 percent of accountants view inflation as the most significant financial threat to Canadian SMBs, followed by rising interest rates (46.1 percent) and staff turnover (41.2 percent). Other concerns include larger corporations undercutting prices and foreign competition, reflecting a tough operating environment for smaller businesses.
Nearly half of respondents (48.8 percent) cited current interest rates as the factor most likely to keep them up at night, followed closely by fears of a recession (46.7 percent).
A notable 24.5 percent of accountants identified Ontario as the province offering the least support to SMBs, with Quebec and Alberta following at 15 percent and 13.3 percent, respectively. Conversely, Nova Scotia emerged as the province viewed as most supportive, earning the lowest criticism at 4 percent.
The survey underscored the importance of technology for SMB success. Accountants ranked "not implementing the proper technology" as the most common financial mistake SMBs make (21 percent), followed by neglecting cash flow management (19 percent). Despite these challenges, only 31.4 percent of accountants reported that their clients have the full range of technology they need.
When SMBs adopt financial technology, the benefits are clear: 65.1 percent of accountants said it allows businesses to reconcile books faster, while 56 percent noted improvements in payment processing efficiency.
Adding a light-hearted touch, the survey asked accountants which Canadian celebrity they would back as an SMB CEO. Actor Ryan Reynolds led the pack with 27.1 percent of votes, surpassing business mogul Kevin O’Leary (22 percent). Other contenders included Keanu Reeves and Drake, reflecting diverse preferences.