Accounting professionals know firsthand the challenges small business clients face, regardless of what industry the clients work in, geographic location, or the state of the economy. This year’s results of the 2025 Intuit QuickBooks Small Business Index Annual Report show some very interesting findings that present timely opportunities for accountants to not only help their clients meet their goals—but to advise them on a number of issues.
Here are six actionable small business insights for accounting professionals to keep in mind as they advise their clients on growth strategies for 2025.
Insight 1: Sources of debt are shifting toward credit cards, leading to short-term growth but long-term challenges
Credit cards are an essential source of financing for small businesses, and by far the most commonly used. This year's report looks at anonymized QuickBooks customer data and recent findings from the Intuit QuickBooks Small Business Insights survey. It shows that business credit cards have been the most popular way for US small businesses to finance their businesses since April 2023. When asked about the proportion of expenses charged to credit cards, the survey found that 55% of US respondents reported charging more than 25% of their total monthly business expenses to credit cards.
After the COVID-19 pandemic, small businesses significantly increased their use of credit cards, but the rate of repayments did not keep pace, resulting in higher outstanding balances. When inflation swelled, these balances continued to grow until early 2022. Then, when monetary rates increased, the cost of borrowing on these higher balances also rose, leading to a substantial increase in interest expenses. Average monthly interest payments increased by $600 per year ($50 a month) within a span of ten months.
“When small business owners allocate more budget to loan and interest payments, less cash flow is available for investing in new team members, technology, or marketing,” said Marcus Dillon, owner and founder of Dillon Business Advisors and a member of the Intuit Partner Council. The impacts noted in the report, such as employment and revenue growth due to credit card financing are beneficial in the short-term, but as the report highlights, undisciplined credit card reliance could carry long-term risk because this debt can potentially carry a higher annual percentage rate. Debt management, forecasting, and ensuring compliance to loan companies will become increasingly important advisory topics for your clients in the coming years.
Insight 2: A bank’s standing impacts your clients
Being familiar with how your clients’ preferred banks are positioned is essential to help them navigate shifts in the macro-economic environment. The report highlights that traditional banks have decreased their supply of term loans and diversified their offerings with more credit card products. Higher interest rates have compounded this shift. The report shows small businesses working with banks whose income responded negatively to higher interest rates had up to 30% lower revenue growth and up to 4% lower employment growth than those working with banks whose income responded more positively to rate hikes (see the full report for more information on income gap analysis).
The options available to your clients from their preferred banking partner, particularly small businesses that are often viewed as higher-risk borrowers, may impact how you advise them related to obtaining loans. Some banks have the ability to offer higher credit card limits to their small business customers because these banks have been able to sustain negative impacts from higher interest rates. This supports growth in the short-term but may introduce longer-term risk to your clients. Helping your clients manage their debt and cash flow will be key to their success.
“Equally important for a small business is partnering with the right bank. Accounting professionals play a crucial role in guiding small businesses toward banking and treasury decisions that drive growth. For 2025, firms should incorporate banking strategy into their services, solidifying their role as strategic advisors and fostering client success,” says Dillon.
Insight 3: Employment post-pandemic remains fluid
From October 2023 to October 2024, small business employment in the US experienced its largest year-over-year decline in employment over this timeframe since 2015 and a third consecutive year-over-year decline in revenue. But there are bright spots and an opportunity for accounting firms to attune their 2025 strategies to the sectors showing signals of stability and growth.
As noted above, financing has allowed businesses to continue to hire based on short-term cash infusion boosts. With some small businesses scaling up or down, payroll advisory will be an important area of growth for firms as clients continue to assess how to address staffing concerns.
Insight 4: Technology has made businesses more adaptable
Technology has emerged as a crucial buffer, enabling small businesses to adapt swiftly to challenges and shifting economic conditions. Evidence from the pandemic indicates that tech-enabled businesses were markedly more resilient. For example, small firms using cash flow reporting, management applications, and e-commerce tools experienced up to 3 percentage points faster growth by early 2021 than those lacking such resources. Further data from the Intuit QuickBooks Small Business Insights survey supports these findings. The survey shows that the most digitally-integrated small businesses report higher productivity, revenue growth, and confidence in future revenue growth. These are critical factors for small businesses operating in an unpredictable market.
“What jumps out at me [in this report] is that small businesses that are highly digitized grow faster than those who are less digitized,” said KC Eames, Director of Client Advising Services at Dark Horse CPAs. Eames is also a member of the Intuit Partner Council. “There’s a need and opportunity for accounting professionals to proactively help clients optimize their technology investments and, if they’re not already, adopt AI solutions to streamline operations and enhance reporting. Ultimately, this year’s report reveals data and trends that can help firms and clients not get left behind.”
Insight 5: Accounting and financial software rank high in digital tool usage, and accountants can be a trusted source for recommendations
Accounting and financial software is ranked third only to social media and the business’s website as the most commonly used digital tools for small businesses. Of these most-often used digital tools, the survey reveals accounting and financial software are viewed as the most useful and valuable.
The survey found the top benefit of digital tools for small businesses is improved efficiency, followed closely by saving time and reducing errors.
This year’s data also shows that recommendations are important when a business owner is thinking about changing their tech. Friends and acquaintances are the most trusted information sources on digital tools for small business owners in the US.
By empowering small businesses with the knowledge they need to make smart technology decisions, accountants can help set small businesses up for increased efficiency and growth. Accounting professionals can help small businesses plan their digital strategy by providing tech stack recommendations that streamline workflows and are cost-effective.
Insight 6: A growing understanding of AI is not optional
Understanding the AI tools your clients turn to, and how they are using these tools in their accounting and financial software, is an important focus area for accountants. Nearly half (46%) of survey respondents indicated that AI has been a valuable tool for enhancing productivity and positively impacted their work efficiency.
Addressing AI knowledge gaps is a worthwhile investment for the accounting industry. And staying up-to-date with AI enhancements in your current tech stack will also prove to be beneficial for your clients. As software changes, knowing how to guide your clients while also gaining an understanding of how AI can improve efficiencies in your workflows is important.
Insights for 2025
You know your clients and are well-versed in their challenges. This year’s report can provide you with insights into the macroenvironment for businesses, and give you insights to help you as you set your clients up for success. Get the 2025 Intuit QuickBooks Small Business Index Annual Report on the state of small businesses.
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