Sage study finds nearly three-quarters of U.S. small and midsize businesses expect to see pre-pandemic revenue levels by end of year

Research study analyzes how SMBs adapted to pandemic-related challenges; highlights regional disparities on the road to economic recovery

ATLANTA, April 13, 2021 (GLOBE NEWSWIRE) -- Sage (FTSE: SGE), the market leader in cloud business management solutions, today shared results from its 2021 Return to Growth Outlook report – showing that U.S. businesses are becoming increasingly confident they will return to pre-pandemic revenue levels by the end of 2021. The survey, which polled more than 1000 finance leaders across American small and midsize businesses, also indicates that many intend to keep the new business strategies implemented during the pandemic.

Sage’s 2021 Return to Growth Outlook report demonstrates many small and midsize companies are becoming increasingly hopeful that business conditions will improve in the second half of this year. While only one-in-three (30%) finance leaders expect to see revenue reach or exceed pre-pandemic levels by the end of June 2021, 73% expect to achieve this mark by the end of this year. Many businesses (56%) also expect vaccine rollout efforts to positively impact their business by October.

Pandemic significantly accelerates digital transformation efforts

To adapt to the needs created by national lockdowns, more than half (52%) of those surveyed say they accelerated digital transformation plans by three years or more. When asked which areas were prioritized in digitization efforts, accounting/finance (45%) was the most popular, followed by marketing (31%) and customer relationship management (26%).

When looking at what technology proved to be the most valuable over the last year, more than one-quarter (27%) of businesses surveyed said cloud accounting software was a “saving grace” solution, providing finance teams with complete visibility, remote access to real-time data, improved efficiencies, better decision making, and seamless cash-flow management. Businesses clearly see the value in cloud-based financial software, with nine in ten businesses surveyed using or planning to invest in these systems in 2021.

The confidence shown by many businesses reflects success implementing new policies and strategies over the past year. Just under one-third (32%) of respondents acknowledged trying social media advertising for the first time, while 23% hired employees completely digitally for the first time. Interestingly, over one-quarter (27%) of businesses said they implemented non-traditional HR policies – such as childcare stipends or flexible work arrangements – for the first time over the course of the pandemic. In what could reflect a burgeoning trend in U.S. businesses, only 13% of respondents intend to reduce budgets for these policies this year.