![]() In fact, 58% believe cash flow issues have negatively impacted their personal wellbeing over the past 12 months, with the top three impacts being stress (84%), anxiety (79%) and sleepless nights (64%). Cash flow crunches impact personal wellbeing.17% were unsure if they could keep the business going. Cash flow issues also caused a number of consequences for small business owners, including not being able to pay themselves (45%) and pay bills (22%). Financial consequences of cash flow issues.When asked about the top short-term financial challenges small businesses have faced over the last 12 months, limited or inconsistent cash flow (40%) and no cash reserved for unforeseen challenges (29%) came out on top. The current economic uncertainty underscores the vital importance of financial resilience and the central role of effective cash flow management to the success of a small business. Together, higher inflation and rising interest rates have resulted in increased costs of raw materials, labor and energy, while reducing consumer purchasing power, which combined can pose cash flow challenges for small businesses. ![]() It revealed that higher inflation and rising interest rates have resulted in tangible physical and emotional consequences for small business leaders, with 45% stating they have had to sacrifice their own paychecks and 43% noting they have lost potential business opportunities. Xero’s report, titled “ Money Matters: The impact of economic conditions on the cash flow of US small businesses“, interviewed more than 500 small business owners across the United States on the challenges the macroeconomic climate presents for small businesses, particularly when it comes to cash flow management. small business owners have experienced an extreme or high impact from inflation on their cash flow over the past six months, and 44% expect inflation to continue to have a similar impact throughout the next six months. ![]() ![]() A new report from Xero, the global small business platform, shows that 48% of U.S.
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