There is increasing concern among the recipients of Payment Protection Program (PPP) Loans about potential audits. This follows an estimate by the Small Business Association’s (SBA) Office of Inspector General that up to one-third of PPP Loans have shown signs of potential fraud.
According to the Interim Final Rule, the SBA has authorization to audit the compliance of all PPP Loan borrowers’ eligibility and other requirements put forward at the time of a borrower’s application. Audits involve an investigation into whether a business accurately calculated its loan eligibility or not and if the funds were used in accordance with the Coronavirus Aid, Relief and Economic Security (CARES) Act.
The SBA administered PPP Loans during the COVID-19 pandemic when the CARES Act was signed into law. They were used by small businesses that were struggling financially during the pandemic. Over 11.5 million PPP Loans were granted to millions of borrowers, some equating to the maximum loan amount of $10 million.
Businesses which used at least 60% of their PPP Loan to cover payroll expenses within 8 weeks – or 24 weeks for certain loans – after receiving the PPP Loan finds, are eligible for loan forgiveness.
For businesses that were not eligible for forgiveness, the PPP Loans are now becoming due. In March this year, the SBA began to refer approximately $20 billion in delinquent PPP Loans with balances under $100,000 to the Treasury Department for collection. An additional 10,000 delinquent PPP Loans with balances above $100,000 have also been submitted.
As the legal intelligence news resource JD Supra informs, if the SBA decides to conduct an audit, notice will be sent to the lender, which will subsequently provide notice of the audit to the borrower within five business days. To help prevent any potential delays within the audit process, JD Supra suggests that PPP Loan borrowers work with their attorneys to start compiling the documentation that is likely to be requested during the audit.
Sales are the lifeblood of any business; understanding sales statistics is not merely an exercise in number-crunching. It is a strategic imperative that offers invaluable insights into consumer behavior, market trends, and business health.
This article aims to shed light on the pivotal sales statistics that define today’s sales environment, providing a compass for navigating the complex terrain of modern business practices. By presenting a curated collection of 100 key statistics, we endeavor to equip industry professionals, stakeholders, and enthusiasts with the knowledge to understand the nuances of sales, forecast emerging patterns, and harness the power of data-driven decision-making to thrive in today’s and tomorrow’s competitive marketplace.
Sales Stats: An Overview
Sales is the driving force that catalyzes the exchange of goods and services, ensuring that value circulates through the market’s veins. This exchange is not just transactional; it is the lifeblood that sustains businesses, enabling them to flourish and grow. In today’s fast-paced and interconnected world, sales have transcended traditional boundaries, embracing innovation and technology to meet the ever-changing demands of consumers. As we delve into the statistics that paint today’s sales landscape, we gain a deeper understanding of this vital function’s role in nurturing economic stability and fostering long-term business viability.
Defining Sales
Sales is a complex process that involves commerce and human interaction. It involves the exchange of goods or services for monetary value, but also involves strategy and relationship-building. Businesses have dedicated teams that work together to orchestrate successful deals. Salespeople, armed with knowledge and persuasion, focus on understanding customers’ needs, matching them with the right solution, and closing the deal. Inside sales teams engage remotely, navigating lean processes and connecting with prospects through phone or digital channels. Salespeople are the architects of transactions, bridging gaps between desire and fulfillment.
The Importance of Sales in Business
Only 53% of sales professionals report spending most of their workday on selling, indicating that 47% do not cite selling as their primary activity.
46% of sales professionals dedicate most of their time to lead prospecting.
36% of sales reps focus primarily on generating leads.
88% of salespeople actively work on improving their soft skills.
On average, sales teams save 5 hours per week by automating day-to-day tasks.
63% of respondents work over 40 hours a week, a 10 percentage point increase for English-speaking salespeople since 2019.
Spanish speakers are 20% more likely to usually work weekends, yet they’re less likely to receive compensation compared to salespeople working elsewhere.
Almost 1 in 10 sales reps work over 60 hours a week.
75% of B2B buyers now prefer remote selling and digital self-service over in-person sales.
The region’s e-commerce market is expected to reach a value of $ 2 trillion in 2024 at constant prices (ie after stripping out the impact of inflation), contributing to 47% of global e-commerce sales.
Mobile retail e-commerce sales in the U.S. are expected to reach more than 560 billion by the end of 2024.
E-commerce sales are expected to grow 10.4% in 2023.
Key Business Sales Statistics
83% of sales professionals say they at least sometimes work weekends.
The global retail e-commerce revenue is expected to grow by over 50 percent between 2021 and 2025.
The number of English-speaking sales reps who said that selling was one of their main day-to-day activities has decreased by eight percentage points, from 62% in 2019 to 54% in 2020.
At least three-quarters (75%) of salespeople working weekends aren’t compensated.
The Role and Impact of Sales Professionals
The average sales win rate is 21% and the average sales close rate is 29%2. 91% of sales professionals upsell, and team upselling tactics drive 21% of company revenue on average.
79% of sales managers say hitting the new target is possible with improvement in existing sales rep productivity3. Only 33% of inside sales rep time is spent actively selling.
High-performing sales teams use nearly three times the amount of sales technology than under-performing teams. CRM software has the ability to increase sales up to 29%.
The Role and Importance of Sales Reps
Sales representatives are the linchpins of a company’s sales strategy, embodying the tactics and values that define the brand in every customer interaction. As members of the sales team, they are the frontline warriors, navigating the competitive terrain of the marketplace to forge lasting relationships and close pivotal deals. Their importance cannot be overstated; they are the human face to a company’s sales strategy, translating business objectives into real-world results. Through their efforts, sales reps drive revenue and shape the sales team’s future direction, continuously adapting and refining strategies to meet the market’s evolving demands and ensure the business’s long-term success.
Sales Rep Performance Statistics
Only 33% of inside sales rep time is spent actively selling.
Technology, particularly AI, can optimize follow-up strategies and free sales reps for more strategic tasks.
Almost one in 10 sales reps is working over 60 hours a week.
High-Performing Sales Teams
High-performing sales teams use nearly three times the amount of sales technology than underperforming teams.
The optimal number of follow-ups for a B2B outreach campaign is two emails.
Sales reps only spend two hours per day actually selling.
Sales teams use an average of 10 tools to close deals.
94% of sales organizations plan to consolidate their tech stack in the next 12 months.
Sales Follow-Up Statistics
48% of salespeople never even make a single follow-up attempt after a cold call.
44% of salespeople give up after one follow-up call.
8% of salespeople have more than five follow-up touches.
Only 2% of sales occur on the first contact, emphasizing how many deals are left on the table without persistent follow-up efforts.
The first follow-up email is very effective and can boost the reply rate by 49%.
In a B2B outreach campaign, sending two follow-up emails is often the most effective approach.
The success rate of selling to a customer you already have is 60-70%, while the success rate of selling to a new customer is only 5-20%.
Sales Technology in Follow-Up
Technology, particularly AI, can optimize follow-up strategies and free sales reps for more strategic tasks.
Sending up to three follow-up emails can increase your success rate by over 80%.
Sales development representatives who use three or more touchpoints for follow-up interactions achieve a substantial 28% increase in conversion rates from Marketing Qualified Leads (MQL) to Sales Qualified Leads (SQL) compared to those who rely solely on phone calls or emails.
Companies that prioritize customer retention over customer acquisition are 60% more profitable.
A majority (54.7%) of customers are loyal to 1 to 5 brands.
Overall customer satisfaction is up 2% over 2020, despite increased demand and challenges.
Digital engagement with customers provides companies with valuable data on consumer behavior that allows them to optimize marketing and product development.
Sales Productivity Statistics
71% of prospects prefer to do solo research instead of talking to a person.
82% of sales professionals say that building relationships with people is the most important part of selling.
60% of customers say no four times before saying yes.
However, 48% of salespeople never even make a single follow-up attempt.
44% of salespeople give up after one follow-up call.
There’s an average of five decision-makers involved in every sales process today.
67% of lost sales are due to sales reps failing to properly qualify potential customers before beginning the sales process.
72% of companies with fewer than 50 new opportunities each month failed to achieve their revenue goals.
21% of the average salesperson’s day is comprised of writing emails.
42% of sales reps report that they don’t have enough information before making a sales call.
There are 13,715,050 sales jobs in the United States.
80% of sales are made by 20% of salespeople.
Only 39% of salespeople intended to go into sales, making 4.14 million accidental sales pros in the U.S. Over 60% of all first-time salespeople fail within a year of employment.
The Prospects of a Sales Career
A career in sales is not just a job, but a journey of endless possibilities. It’s a path that offers a unique blend of challenges and rewards, where ambition meets opportunity, and hard work leads to substantial achievements. The prospects in sales are vast, with the potential for rapid advancement, significant financial gains, and the intrinsic satisfaction of meeting and exceeding personal and professional goals. Sales professionals are the driving force behind business growth, and their success is often directly tied to their ability to innovate, persuade, and connect. With the right mix of skills, determination, and strategy, a career in sales can be a fulfilling adventure that is as diverse as the individuals who pursue it.
Sales Career Statistics
As of January 2024, the unemployment rate for sales and related occupations was 4.5%.
The educational requirements for sales jobs can vary widely, but many positions require a bachelor’s degree.
As of 2023, there were disparities in gender ratios across various industries, including sales.
The Science of Sales Calls: Key Statistics
The average success rate of cold calling is around 2%. This means that out of 100 cold calls, a sales development representative (SDR) can expect at least 2 calls that convert into warm leads.
Calls lasting between 5 to 15 minutes show higher success rates.
It takes an average of 8 call attempts to reach a prospect.
Once you have a qualified lead, 20% of them will convert into a sale.
80% of sales require five follow-up calls. However, 44% of salespeople give up after one follow-up call.
If you call a lead in the first 5 minutes after they’ve submitted a web form, they’re 100x more likely to get on the phone.
The best time for cold calling potential buyers is between 10 am and 12 pm, as well as 4 pm and 6 pm.
82% of sales professionals say that building relationships with people is the most important part of selling.
60% of customers say no four times before saying yes.
The Role of Sales Calls in Sales Success
Sales calls are the quintessential element in the symphony of sales success, serving as the direct line of communication between a business and its potential clients. They are the pivotal moments where relationships are forged, trust is established, and the value of products or services is conveyed. In an age where digital communication often prevails, the personal touch of a sales call can make a significant impact, offering a tailored experience that addresses the unique needs and pain points of each prospect. By leveraging strategic preparation and a deep understanding of the client’s goals, sales calls become more than just pitches; they transform into opportunities for education, building rapport, and ultimately, sealing the deal. The art of the sales call, when executed with finesse, can elevate a company’s sales strategy, driving success and fostering long-term customer loyalty
Sales Call Statistics
71% of prospects prefer to do solo research instead of talking to a person.
82% of sales professionals say that building relationships with people is the most important part of selling.
60% of customers say no four times before saying yes.
48% of salespeople never even make a single follow-up attempt.
44% of salespeople give up after one follow-up call.
The first follow-up email is very effective and can boost the reply rate by 49%.
The optimal number of times to send a sales follow-up email for a B2B outreach campaign is two.
The Future of Sales: Emerging Trends and Predictions
The horizon of sales is rapidly expanding, with emerging trends and technologies reshaping the way businesses connect with customers. As we look to the future, the integration of artificial intelligence (AI) stands out as a transformative force, with 71% of sales reps predicting a significant impact on buyer research methods. The digital landscape is becoming increasingly AI-optimized, offering more accurate and efficient decision-making for customers. Sales professionals are expected to adapt swiftly, with a 65% consensus that generative AI tools will ease the information-gathering process for buyers. Moreover, the role of sales calls is evolving, with a growing preference for digital-first interactions and a 33% desire among buyers for a seller-free experience. These trends point to a future where sales strategies are deeply intertwined with technology, demanding a new level of digital dexterity from sales teams to thrive in the competitive marketplace of tomorrow.
Emerging Trends in Sales
Emerging trends in sales are significantly transforming the landscape of the industry. These changes are adapting to new consumer behaviors and technological advancements, making sales more efficient and customer-centric. Below are some key trends that highlight this evolution:
Virtual Selling as the New Norm: The adoption of virtual selling platforms and tools has skyrocketed, making it a central aspect of modern sales strategies. Virtual meetings, product demos, and negotiations are becoming standard practices, reflecting a shift from traditional in-person engagements to digital-first interactions.
Self-Service and Contactless Transactions: There’s a noticeable move towards enabling customers to make purchases and decisions independently, without direct salesperson interaction. This trend includes self-service portals, contactless payments, and automated customer service, catering to the customer’s desire for speed, convenience, and minimal physical contact.
Focus on Reducing Buyer’s Remorse: Companies are investing more in post-purchase support and engagement to ensure customer satisfaction and reduce the likelihood of returns or dissatisfaction. This includes follow-up communications, satisfaction surveys, and easy return processes, all aimed at reinforcing a positive brand experience.
Sales Automation Tools: To increase efficiency and reduce the workload on sales teams, companies are implementing sales automation tools. These systems can handle repetitive tasks such as lead generation, email campaigns, and customer segmentation, allowing sales professionals to focus on more strategic activities.
Artificial Intelligence in Sales: AI is being used to enhance various aspects of the sales process, from predictive analytics for forecasting sales trends to chatbots that provide instant customer service. AI can also personalize the customer experience by offering tailored recommendations and insights to sales teams.
Data-Driven Sales Strategies: The use of big data and analytics in sales is becoming more prevalent, enabling more informed decision-making. Sales teams can analyze customer data and market trends to optimize their sales strategies, improve targeting, and predict customer needs.
Social Selling and Influencer Collaborations: Leveraging social media platforms and influencers to reach potential customers is becoming an essential part of sales strategies. This approach allows companies to tap into the influencer’s audience, build trust, and directly engage with potential buyers in a more organic and authentic way.
Sustainability and Ethical Selling: Consumers are increasingly valuing sustainability and ethical practices in their purchasing decisions. Sales strategies are evolving to highlight eco-friendly products, ethical sourcing, and corporate social responsibility initiatives, appealing to the growing segment of environmentally and socially conscious buyers.
These emerging trends underscore the dynamic nature of the sales industry, driven by technological innovation, changing consumer preferences, and a growing emphasis on efficiency and personalization. Companies that adapt to these trends can enhance their customer relationships, improve sales outcomes, and stay competitive in the evolving marketplace.
Trend
Key Aspects
Impact on Sales Process
Impact on Customer Experience
Virtual Selling
- Adoption of virtual platforms and tools
- Digital-first interactions
- Reduces need for in-person meetings
- Expands reach to global markets
- Provides convenience and flexibility
- May lack the personal touch of face-to-face interactions
Self-Service & Contactless Transactions
- Self-service portals
- Contactless payments
- Decreases dependency on sales staff
- Streamlines transaction process
- Offers autonomy and speed in purchasing
- Limits personalized service
Reducing Buyer’s Remorse
- Post-purchase support
- Satisfaction surveys
- Enhances customer follow-up
- Helps in understanding customer dissatisfaction
- Increases customer satisfaction and loyalty
- Provides a safety net for purchase decisions
Sales Automation Tools
- Lead generation and email campaigns automation
- Customer segmentation
- Increases efficiency and reduces manual tasks
- Allows focusing on strategic activities
- Ensures timely and relevant communication
- May feel less personalized
Artificial Intelligence
- Predictive analytics
- Chatbots for customer service
- Enhances forecasting and decision-making
- Provides instant customer service
- Offers personalized recommendations
- Improves responsiveness and engagement
Data-Driven Strategies
- Use of big data and analytics
- Optimization of sales strategies
- Informs decision-making with actionable insights
- Improves targeting and forecasting
- Ensures offers are tailored to customer needs
- Enhances overall customer satisfaction
Social Selling & Influencer Collaborations
- Engagement on social media platforms
- Partnerships with influencers
- Builds trust and brand awareness
- Direct engagement with potential buyers
- Feels more organic and authentic
- Leverages peer recommendations
- Appeals to environmentally and socially conscious buyers
- Differentiates brand in the market
- Aligns with customer values and ethics
- Enhances brand loyalty and trust
The Role of Technology in Sales
The role of technology in sales is pivotal, as it streamlines the entire sales process from prospecting to closing Big data analytics tools enable sales organizations to manage prospecting more efficiently, while AI is leveraged for operational efficiency, allowing sales reps to spend more time building relationships with customers. Moreover, mobile, social, big data and cloud technologies are revolutionizing sales techniques, offering new ways to engage with customers and drive sales. These technological advancements are not only enhancing the efficiency of sales processes but also transforming the job of the sales professional, enabling a more personalized approach to customer engagement.
Key Sales Success Statistics
Understanding the key statistics that contribute to sales success is paramount in today’s dynamic business landscape. Here are some pivotal sales statistics shedding light on the factors driving sales effectiveness and efficiency:
Sales Activity Allocation: Only 53% of sales professionals spend most of their workday on actual selling activities, highlighting the need for more efficient time management and prioritization. 46% of sales professionals primarily dedicate their time to lead prospecting, emphasizing the importance of a robust lead generation strategy.
Workload and Productivity: Salespeople work tirelessly, with 63% logging over 40 hours per week, showcasing their dedication to driving results. Almost 1 in 10 sales reps work over 60 hours a week, underscoring the demanding nature of the profession and the commitment required for success.
Shift Towards Remote Selling: In response to changing preferences, 75% of B2B buyers now prefer remote selling and digital self-service over in-person sales, signaling the importance of adapting sales strategies to meet evolving consumer behaviors.
Sales Performance Metrics: Most sales teams track 6–10 sales performance metrics, emphasizing the importance of data-driven decision-making and continuous performance evaluation. Sales cycle length emerges as the most critical sales enablement metric, indicating the significance of optimizing sales processes for efficiency and effectiveness.
E-commerce Growth: Retail e-commerce sales are projected to exceed 6.3 trillion U.S. dollars worldwide in 2024, underlining the increasing dominance of online channels in the retail landscape. Mobile retail e-commerce sales in the U.S. are expected to surpass 560 billion by the end of 2024, highlighting the importance of mobile optimization in sales strategies.
Sales Rep Engagement: Technology plays a crucial role in sales, with high-performing sales teams leveraging nearly three times the amount of sales technology compared to underperforming teams, emphasizing the importance of embracing technological innovations for enhanced sales performance. Only 33% of inside sales rep time is spent actively selling, emphasizing the need for streamlining processes and minimizing non-selling tasks to maximize productivity.
FAQs: Sales Statistics
What is the average success rate in sales?
The average success rate in sales varies across industries and depends on numerous factors. However, on average, the success rate of cold calling is around 2%, highlighting the challenges sales professionals face in converting prospects into customers.
Why are statistics important in sales?
Statistics provide valuable insights into consumer behavior, market trends, and the effectiveness of sales strategies. By analyzing sales statistics, businesses can identify areas for improvement, optimize their sales processes, and make data-driven decisions to maximize revenue and profitability.
What are some surprising sales stats?
Some surprising sales statistics include:
Only 53% of sales professionals spend most of their workday on actual selling activities.
Almost 1 in 10 sales reps work over 60 hours a week.
Sales teams use an average of 10 tools to close deals, showcasing the reliance on technology in modern sales processes.
What is the role of sales reps in achieving sales targets?
Sales reps play a crucial role in achieving sales targets by identifying potential customers, nurturing leads, building relationships, and closing deals. Their ability to understand customer needs, effectively communicate product benefits, and overcome objections directly impacts sales performance and organizational success. Leadership can help reps improve sales performance by providing training and resources, making targets and objectives clear, and even launching new initiatives like sales contest ideas.
How do sales teams contribute to business growth?
Sales teams contribute to business growth by generating revenue, acquiring new customers, retaining existing ones, and expanding market reach. Through effective sales strategies, teams drive profitability, enhance brand reputation, and create opportunities for long-term success.
What is the importance of a well-defined sales process?
A well-defined sales process provides structure, clarity, and consistency to sales activities. It helps sales teams prioritize tasks, qualify leads efficiently, and guide prospects through the buying journey. A defined sales process also enables measurement, analysis, and the ability to continuously improve sales performance.
What are some future trends in sales?
Future trends in sales include:
Increased emphasis on virtual selling and self-service options.
Integration of artificial intelligence (AI) and automation in sales processes.
Greater focus on personalized customer experiences and relationship-building.
Adoption of data analytics and predictive modeling for targeted sales strategies.
What is the national sales closing rate?
The national sales closing rate can vary depending on the industry, market conditions, and sales approach. However, it typically ranges between 20% to 30%, indicating the percentage of sales opportunities that result in closed deals.
What are some effective social selling tools?
Some effective social selling tools include:
LinkedIn Sales Navigator: Facilitates targeted prospecting and relationship-building on LinkedIn.
Hootsuite: Allows for social media management, content scheduling, and monitoring of sales leads.
Buffer: Helps automate social media posting and engagement, enabling sales reps to stay active on multiple platforms.
HubSpot: Offers social media monitoring, lead tracking, and analytics to support social selling efforts.
Mastercard has announced an expansion of benefits for its cardholders through new partnerships with leading companies in health and wellness, travel, and lifestyle. These enhancements are designed to add value for both everyday consumers and small business owners.
The credit card giant has teamed up with Alo Moves, Booking.com, HealthLock, Instacart Business, Lyft, MoviePass, and ResortPass to offer discounts and exclusive services that address key spending areas for its users. This move is part of Mastercard’s strategy to offer more than just financial services, by enriching its cardholders’ personal and professional lives.
New Benefits Aim to Simplify and Enrich Experiences
Recent studies by Mastercard show that 87% of American consumers look forward to using their credit card rewards, and these rewards often influence their buying decisions. To meet this demand, Mastercard’s latest offerings include significant discounts and special services:
Travel: Deals with Booking.com, Lyft, and ResortPass will make traveling more affordable and enjoyable. These include up to 7% off hotel bookings, 10% off airport rides with Lyft, and statement credits for enjoying resort amenities.
Health and Wellness: Partnerships with Alo Moves and HealthLock provide reduced membership fees for wellness platforms and free access to services that help manage medical expenses and ensure billing accuracy.
Lifestyle: For everyday convenience, Mastercard now offers benefits with Instacart Business for grocery delivery and MoviePass for discounted access to cinemas.
Seema Chibber, Executive Vice President of North America Product and Engineering at Mastercard, stated, “From savvy shoppers to ambitious entrepreneurs, Mastercard provides a full complement of valuable benefits to help cardholders simplify their daily routines, fuel their passions, and enhance their lifestyles.”
Specific Offers for Small Businesses and Consumers
Booking.com: Savings on pre-paid accommodations.
Lyft: Discounts on rides to the airport.
Alo Moves: Half off on wellness subscriptions and additional loyalty points.
MoviePass: 50% off new subscriptions for the first two months.
ResortPass: Up to $30 credit on bookings.
Instacart Business: A two-month trial of Instacart+, offering free same-day deliveries, plus further discounts on subsequent orders.
These enhanced benefits are designed to not only provide savings but also to increase convenience and enhance the quality of services available to Mastercard holders. This approach helps both individual consumers and small business owners by providing valuable solutions that support their lifestyles and business operations.
Mastercard’s latest updates are a strategic response to the evolving needs of its cardholders, ensuring they receive the best possible value and service options in a dynamic market. For more details, cardholders are encouraged to visit Mastercard’s websites or contact its customer service.
eBay Inc. and Collectors, the parent company of the well-known grading service PSA, have announced a partnership that wants to change how people buy, sell, and store trading cards. The deal includes eBay buying Goldin, a top auction house for collectibles, and PSA purchasing eBay’s vault service.
This collaboration aims to make the trading card hobby easier and more enjoyable by streamlining the process of buying, selling, and grading cards. Both eBay and PSA are recognized for their innovative approaches to helping collectors and small business owners in the industry.
Jamie Iannone, CEO of eBay, expressed excitement about the new partnership, saying, “The deals announced today further our mission of reinventing the future of ecommerce for enthusiasts, and we are excited to partner with PSA to offer a simpler, more personalized experience for passionate collectors.” Iannone stressed that this move is part of eBay’s larger plan to transform e-commerce for enthusiasts around the world.
Nat Turner, CEO of Collectors, noted this partnership’s benefits to the community, stating, “This will benefit The Hobby above all else, which is the primary goal of this innovative partnership between eBay and PSA. We will drastically improve the collector experience by creating a seamless, end-to-end journey.”
The partnership plans to remove the usual hassles involved in the hobby, especially in terms of grading and selling cards. PSA will introduce a new service that lets people list and sell their trading cards on eBay right after they are graded, which means sellers can get their cards to market faster and buyers can trust the quality of what they’re buying.
The acquisition of Goldin by eBay will also broaden the variety of collectibles available to buyers and provide sellers with access to a larger audience. Ken Goldin, founder of Goldin, shared his enthusiasm about joining eBay, saying, “This deal will enhance and expand our reach as we continue to do what we do best – source incredible collector’s items – and connect with millions of enthusiasts around the world.”
With PSA taking over eBay’s vault services, eBay customers in the U.S. will still have seamless access to these services. The plan is to merge these services into a new and improved offering eventually.
These deals are set to significantly impact the trading card and collectibles market, offering new opportunities for collectors and small business owners to thrive in this hobby.
Imagine crunching massive data sets to predict customer behavior, personalize content in real time, and automate repetitive tasks. This is how AI is going to be revolutionizing marketing. Get ready for a marketing revolution at Strategic Marketing West 2024.
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Major disasters like the recent collapse of the Francis Scott Key Bridge in Baltimore can have major implications for nearby businesses. This leaves communities to find ways to help businesses through difficult periods so they’re still in operation once conditions return to normal. Two such programs recently launched in Baltimore. Read about them and other current small business grants below.
Port of Baltimore Worker Retention Program and Emergency Business Assistance Program
Businesses that are struggling to retain employees due to the collapse of the Francis Scott Key Bridge in Baltimore may soon be able to access relief thanks to the Port of Baltimore Worker Retention Program. The program includes $12.5 million in funding and aims to help businesses avoid layoffs until the port fully reopens. Eligible businesses can use funds for employee training, payroll expenses, and support services. Additionally, the Port of Baltimore Emergency Business Assistance Program is offering grants of up to $100,000 to help businesses facing challenges due to the port’s closure. Businesses must be able to prove financial hardship related to the bridge collapse to qualify. The application period opens on April 22.
Maui Small Business Recovery Grant Program
The US Chamber of Commerce Foundation and American Express are teaming up to support Maui businesses that were affected by last year’s wildfires. The Maui Small Business Recovery Grant Program will offer $5,000 grants to 100 businesses on the island. To qualify, businesses must have between 3 and 20 employees and a physical location on Maui since at least August 1, 2023. Businesses must also be able to demonstrate financial need and loss due to the wildfires. May 1 is the deadline to apply.
Lifting Our Community Businesses Across Long Island Small Business Grants
Optimum Business and the LIA Foundation are partnering on a new grant program to support small businesses in Nassau and Suffolk counties. Eligible businesses can apply for up to $5,000 each, with a total of $300,000 available. The LOCAL “Lifting Our Community Businesses Across Long Island” Small Business Grants program also offers a six-month membership to the Long Island Association for all applicants. And grant recipients will get a one-year complimentary membership. Eligible businesses must apply by May 1.
Greater Washington D.C. Purple Line Construction Grants
The Greater Washington Community Foundation is facilitating a grant program to support local businesses that have been negatively impacted by delayed Purple Line construction through the Washington D.C. area. The program is funded by a $500,000 donation from PNC Bank. Businesses that have been negatively impacted by the project can apply for up to $20,000 to help cover various expenses, from capital improvements to operational costs. To qualify, businesses must have at least three years in business, ten or fewer employees, and $5 million or less in annual revenue. The deadline to apply for funding is May 13.
Quincy Small Business Assistance Grant Program
Quincy, Florida, is offering grants to both businesses and individuals looking to positively improve their neighborhoods. The Quincy Community Redevelopment Agency is facilitating both the Small Business Assistance Grant and the Home Repair Grant. Both programs offer up to $10,000 to property owners looking to upgrade their spaces. Business owners must be located in the Quincy CRA District, have a business license, and be a Quincy utility customer to qualify.
Newport Technical Assistance Grants
Newport, Vermont, is offering grants to small businesses in the Designated Newport City Downtown district to help them access various technical assistance services. Funding comes from an award that Newport Downtown Development received from the USDA-RD Rural Business Development Grant Program. Grants can cover costs related to various services, including website design, electronic payment processing, and marketing. To qualify, businesses must have fewer than 50 employees and less than $1 million in gross profit. The Northern Community Investment Capital is facilitating the program, so they will help businesses through the application process and assist in creating proposals for various services.
Business audits are essential for any small business’s legal and operational side. They examine a company’s financial and accounting records, checking compliance with the General Accepted Accounting Principles (GAAP).
Businesses present themselves as accountable and build trust among stakeholders and customers through these audits. They also highlight areas for improvement.
What is a Business Audit?
Business audits examine a company’s accounting and financial records. The goal is to ensure a small business’s financial reporting and business practices are accurate, compliant, and credible. That’s why some are independent.
Small businesses need to pay special attention because business audits identify areas for improvement and discrepancies that might not be noticed otherwise. Systematic audit processes provide reliable financial documents.
For example, an annual audit might find inventory items that are overvalued. That will result in inflated profit figures. Fixing the issue provides compliance with accounting standards and a more accurate picture of a company’s finances.
The Purpose of a Business Audit
There are different reasons why a business audit is essential, including adherence to the generally accepted accounting principles (GAAP).
For Legal Compliance
These audits help small businesses stay legal, adhering to financial reporting standards, tax laws, and industry-specific regulations.
For Transparency
These also supply unbiased verification of financial documents, accurately reflecting any small business’s financial status. That kind of transparency is essential for creditors, investors, and management.
Business audits also build trust and credibility among stakeholders, customers, lenders and the public.
Types of Audits
There are several different types of audits.
As the name suggests, internal audits are conducted by your staff.
Accounting firms perform external audits.
IRS audits look to see if financial information is reported correctly according to tax law.
Financial audits look at financial statements and records.
Internal Audit
Internal audits are essential for risk management and operations. They provide an objective, independent assessment.
The Process
These are usually carried out by staff from the internal audit department. They review documents, interview staff, and observe operations. The team compiles recommendations, conclusions, and findings.
The Goals
One of the big goals here is to improve risk management strategies and operations.
The Benefits
These audits improve risk management practices and strengthen internal controls. They also identify any efficiencies and bottlenecks to help streamline processes.
External Audit
Financial records need to be accurate and fair. That’s why external auditors carry out external audits.
These audits let everyone know financial statements accurately reflect a business’s performance and position.
They verify the accuracy of financial data and ensure a company’s statements comply with accounting standards and legal requirements.
Hiring an external auditor begins with submitting a Request For Proposal (RFP). External auditors are more independent than their internal counterparts. Internal audits have a bigger scope, including risk management and operational efficiency. External versions focus more on compliance with accounting laws and standards.
IRS Audit
IRS audits check to ensure data is reported correctly according to tax law and the correct tax amount.
A business or individual can be selected when algorithms flag their returns. Taxpayers can be audited by the Internal Revenue Service when doing business with someone being audited. The IRS also matches tax returns with data and makes sure businesses are following1099 rules and other regulations. Discrepancies can get you flagged.
The IRS Business Audit Process
Small businesses usually receive a notice of an IRS business audit through the mail. The audit can be conducted via mail, at an IRS office, or at a small business location. A field audit is held at the office of a business’s accountant.
Financial Statements Audit
Auditing financial statements is about making sure they are accurate and free from error or fraud. They can identify weaknesses in internal controls and financial reporting to boost investor confidence.
Auditors begin by studying and then testing a small business’s internal controls. This can involve examining how transactions are reported, recorded, and authorized.
Feature
Internal Audit
External Audit
IRS Audit
Financial Statements Audit
Definition
An objective, independent assessment focusing on risk management and operational efficiency.
Audits conducted to ensure financial records accurately reflect a business's performance, adhering to accounting standards.
Checks to ensure tax data is reported correctly according to tax laws.
Focuses on verifying the accuracy of financial statements, ensuring they are free from error or fraud.
Primary Focus
Risk management strategies, operational efficiency, and internal controls.
Compliance with accounting standards and legal requirements.
Correct tax reporting and adherence to tax laws.
Accuracy and reliability of financial statements, and the identification of potential weaknesses in financial reporting.
Process
Conducted by the internal audit department through document reviews, staff interviews, and operation observations.
Initiated with an RFP, conducted by independent external auditors to verify financial data accuracy.
May involve mail correspondence, IRS office meetings, or on-site visits, often triggered by discrepancies or algorithm flags.
Involves studying and testing a company's internal controls, examining transaction reporting, recording, and authorization.
Boosts investor confidence by identifying weaknesses in internal controls and financial reporting.
How to Prepare for a Business Audit
Preparing for a business audit can seem daunting, but with proper organization and understanding of what’s expected, you can navigate the process more smoothly. Here are some detailed steps and considerations to help small business owners get ready for an audit:
Organize Your Financial Records: Ensure all your financial documents are orderly and accessible. This includes:
Digitizing receipts, invoices, and payroll records for easy retrieval.
Maintaining organized bank statements and financial transactions.
Keeping tax returns and previous audit reports well-filed.
Understand the Audit Type: Each audit has its own focus, so preparation varies:
For an internal audit, be ready to discuss risk management strategies and operational processes.
In an external audit, focus on the accuracy and compliance of your financial statements.
For an IRS audit, ensure all tax-related documents are correct and substantiated.
When preparing for a financial statements audit, be ready to demonstrate the integrity of your financial reporting and internal controls.
Review Legal and Regulatory Requirements: Make sure your business complies with applicable laws and standards relevant to your industry and the type of audit:
Stay updated on accounting standards and tax laws.
Ensure your business practices adhere to regulatory requirements.
Consult Professionals:
Engage with a certified public accountant (CPA) or a professional auditor for advice and insights.
Their expertise can help you understand complex audit areas and how to present your records.
Prepare Your Team: Inform any staff involved about the audit process:
Assign roles and responsibilities for gathering and presenting information.
Ensure employees understand the importance of the audit and are cooperative.
Perform a Self-Audit: Conducting an internal review before the actual audit can help identify and rectify potential issues:
Check for discrepancies in financial records.
Review compliance with internal policies and procedures.
Plan for Document Retrieval: Have a system in place for quick access to requested documents:
Use a digital filing system with clear labels and secure backups.
Test the retrieval process to ensure efficiency during the audit.
Stay Calm and Cooperative: Approach the audit with a positive attitude:
See it as an opportunity to improve your business operations and financial management.
Respond to auditor requests promptly and with the required detail.
By taking these steps, you can approach the audit process with confidence, knowing that you’re well-prepared to present your business operations and financials transparently and accurately.
Essential Documentation for an Audit
If you want an audit to go smoothly, you must corral these financial records.
Financial Statements
These are the meat and potatoes of the documents you must assemble. Providing a snapshot of your small business’s financial health means gathering balance sheets, income statements, and cash flow statements.
Tax Returns
These must be cross-referenced with financial data to demonstrate a company’s compliance with tax laws. Auditors look for accuracy in reported income.
Transaction Records
Receipts and invoices prove and verify the accuracy and legitimacy of items like revenue and expenses. Bank statements are essential to validate the numbers shown on a balance sheet.
Implementing Audit Findings
Implementing audit findings effectively is crucial for enhancing your business operations and compliance. Here’s how to approach this process systematically:
Understand the Audit Report: Begin with a comprehensive review of the audit findings to grasp the details and implications.
Identify critical issues, such as inefficiencies, gaps in controls, and areas of non-compliance.
Prioritize the findings based on their impact on your business operations and risk exposure.
Conduct a Root Cause Analysis: For each identified issue, delve into the underlying reasons.
Use analytical techniques to uncover the root causes of inefficiencies and compliance gaps.
Involve relevant team members in the analysis to gain diverse insights and more accurate conclusions.
Develop a Corrective Action Plan: Based on the root cause analysis, outline specific steps to address each issue.
Assign clear responsibilities and deadlines for implementing these actions.
Ensure the plan includes both short-term fixes and long-term solutions to prevent recurrence.
Implement Temporary Controls: If immediate risks are identified, put in place temporary measures to mitigate them.
These could include additional oversight, manual checks, or temporary halts of certain processes.
Communicate Findings and Actions: Keep all stakeholders informed about the audit findings and your planned response.
Explain the implications of the findings and the importance of the corrective actions.
Encourage feedback and suggestions from employees to enhance the action plan.
Train and Educate Your Team: If audit findings relate to operational practices or lack of knowledge, provide necessary training.
Develop training programs to address specific gaps identified in the audit.
Reinforce the importance of compliance and efficient processes through regular training sessions.
Monitor the Implementation: Establish a monitoring mechanism to track the progress of corrective actions.
Use key performance indicators (KPIs) and milestones to assess the effectiveness of implemented changes.
Regularly review the progress and make adjustments to the action plan as necessary.
Schedule Follow-Up Audits: Plan for follow-up audits to ensure the corrective actions have been effectively implemented and are sustaining their intended effects.
Use these audits to identify any ongoing issues or emerging challenges.
Consider the feedback from follow-up audits to continuously improve your processes and controls.
Document Everything: Maintain detailed records of the audit findings, your responses, and the outcomes of implemented actions.
Documentation is essential for accountability, future reference, and compliance purposes.
By adopting this structured approach, you can turn audit findings into opportunities for improving your business operations, pivoting business strategy, enhancing compliance, and fostering a culture of continuous improvement.
FAQs: Business Audit
Following are some common answers to FAQs.
How often should a small business conduct an internal audit?
A good baseline for an internal audit is once a year.
What are the most common triggers for an IRS audit?
There are several, including significant income discrepancies and above-average income. Largetax deductionsand credits will red-flag you, too.
How can a business dispute findings in an external audit?
They need to provide detailed explanations and documented evidence to challenge external audits.
How do external auditors contribute to corporate governance?
External auditors play a significant role here by providing objective and independent assessments of a company’s financial statements. They evaluate internal controls and promote compliance so a small business can avoid regulatory and legal issues.
Can a small business conduct an audit without hiring external professionals?
An internal audit doesn’t always need professionals. However, a small business must define its scope and objectives before starting one. The next step is to create a checklist of the items to assess and review. They need to conduct interviews, identify issues, and gather and analyze data before reporting findings.
