How Small Businesses Are Spending

SMALL BUSINESSES Using data from QuickBooks SPENDING how much they're cutting back, and where they are opening up company coffers. SMALL BUSINESSES CUTTING BACK. . Since 2008, small businesses have been cutting back expenses. $20k 17.958 17,301 16,966 July 2010 registered the lowest average monthly spending in years - down nearly 50% from the same period two years earlier. 19,084 $15k 14,803 14,81 14,598 14.358 14,031 13.930 3,639 13,516 13.542 13.037 12,584 11,945 11,800 $10k 1,252 10.876 10431 10.170 9.171 9.231 8,903 $5k AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG 80. '10 60, WHO'S CUTTING BACK . Compared to a year ago, most companies are cutting back on expenses. Smaller companies are cutting back more than larger companies, and virtually all industries are scaling back expenses. SIZE MATTERS -44% -12% -5% -1% +2% 00 Less than $100k $100k-$250k $250k-$500k $500k-$IM Over $IM ACROSS INDUSTRIES Educational Services Family Services Accommodation Food Services Consulting Retail Real Estate Healthcare Services Computer Systems Wholesale Trade and Distributors Construction -19% -20% !! -21% -21% -22% -24% -26% -28% -29% -30% -30% -31% -37% -40% PAYROLL: SMALL BUSINESS'S BIGGEST EXPENSE 19% For most companies, the cost of employing staff is the biggest expense followed by services and cost of goods. 16% %T| Tİ% 4% 4% 4% PAYROLL SERVICES COST OF GOODS ADVERTISING OFFICE EXPENSES RENT TRAVEL INSURANCE INTEREST TAXES UTILITIES UNCATEGORIZED HOW SMALL BUSINESSES SPEND Where small businesses spend largely depends on the industry they're in. Here we break down the top expenses for select industries to see where they devote the most money. → WHERE PAYROLL IS KING Small businesses in the following seven industries follow the general trend. Payroll dominates each industry's list of top expenses, with the family services and healthcare industries reporting the largest percentage of income going toward payroll. HEALTHCARE SERVICES FAMILY SERVICES FINANCE & INSURANCE Payroll Services 33% 14% Payroll Uncategorized 33% 13% Payroll Services Payroll Services 26% 25% 19% 17% Uncategorized Cost of Goods Services Uncategorized Rent Advertising 12% Uncategorized Office Expenses 11% 6% Rent Advertising Office Expenses Cost of Goods Insurance Taxes 8% 7% Rent 6% 7% 4% 5% Rent Office Expenses Advertising 6% 5% 3% 4% Cost of Goods Office Expenses Advertising 5% 3% Cost of Goods 4% Insurance Тахes Travel 3% 3% 3% Insurance Insurance 4% 3% Тахes Taxes Travel 3% 2% Utilities 3% Travel Utilities 2% 3% Travel 2% 1% Utilities Utilities 2% Interest 1% Interest Interest 1% Interest 2% INFORMATION, BROADCAST. MOTION PICTURES COMPUTER SYSTEMS CONSULTING Payroll Services Uncategorized Cost of Goods Office Expenses Advertising Insurance 25% Payroll Services 19% Payroll Services 18% 13% 14% 17% Uncategorized Cost of Goods 9% Uncategorized Cost of Goods Advertising Office Expenses 12% 7% 7% 10% 4% Advertising Office Expenses 4% 4% 4% 4% Travel 4% Rent Rent Rent Travel Taxes Insurance Insurance Travel Тахes Taxes Utilities Utilities Interest Utilities 2% Interest Interest 1% →COST OF DOING BUSINESS THE PRICE OF GOOD SERVICE For these six industries, the cost of goods is the biggest expense for small businesses, most often followed by payroll. Food services and wholesale trade industries lead the way with the largest percentage of income devoted to the cost of goods. Services are the biggest expense for small businesses in the accommodation and real estate industries. Both industries also spend a greater percentage of their income on taxes compared to other industries. WHOLESALE TRADE & DISTRIBUTORS FOOD SERVICE ACCOMODATIO Cost of Goods 33% 11% Cost of Goods Payroll Uncategorized Services 32% Services Payroll Uncategorized 21% 19% Uncategorized Payroll Services Advertising Office Expenses Rent Travel 22% 9% 13% 12% 9% 9% Cost of Goods 9% 4% Rent 8% Utilities Taxes 7% 5% 3% Advertising Utilities 4% 3% 4% Interest Rent 5% 3% Тахes 3% Insurance 1% Insurance 4% 2% Advertising Office Expenses Insurance Travel 4% Interest Taxes Utilities 1% Interest Office Expenses Travel 2% 3% 1% 2% 1% 3% 1% 2% REAL ESTATE Cost of Goods Payroll Uncategorized 31% Cost of Goods Рayугoll Uncategorized 14% 11% 20% 15% Services 13% Uncategorized 13% 11% Interest 10% Services 10% Services 10% Payroll (Тахes Utilities Advertising Cost of Goods 8% Rent 8% Office Expenses Advertising 4% 5% Advertising Office Expenses 5% 3% 5% 3% Rent 3% 4% Interest 2% Travel Taxes 2% Utilities Insurance 4% Travel Utilities 2% Insurance 1% Office Expenses Rent Travel 4% 2% Interest 1% 3% Insurance 1% Тахes 1% 2% MANUFACTURING & MINING CONSTRUCTION Cost of Goods Payroll Services 29% 16% Cost of Goods Payroll Services 24% 19% Uncategorized Rent 10% 8% Uncategorized Insurance 8% 8% 4% Advertising Insurance Travel Advertising Office Expenses 3% 3% 2% 3% 2% Interest 2% Office Expenses Travel Utilities 2% 2% 1% 2% Rent 2% Interest 2% 1% Taxes 1% Taxes Utilities 1% THE SPENDING PERSONALITIES OF A SMALL BUSINESS OWNER According to an Intuit Small Business Survey, small business owners can identify with certain TV personae when it comes to their company's expenses. I'm an early adopter and spend all my money on new technology. I'm a penny pincher! It's all about where you invest. I like to live the good life. I can't resist the latest fashions. GEORGE COSTANZA DONALD TRUMP VINCENT CHASE PHIL DUNPHY CARRIE BRADSHAW of "Sex and the City" of "Seinfeld" of "The Apprentice" of "Entourage" 10% of "Modern Family" 46% 35% 4% 4% QuickBooks Online intuit. SOURCE | Aggregated data from 134,900 small businesses using QuickBooks Online HOW Finance and Insurance Information, Broadcast and Motion Pictures Design Services *********