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How Can New Business Better Address Cash Flow and Cybersecurity Concerns? Q&A With Patriot Software
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A surge in new business applications in the last year shows that the spirit of entrepreneurship is alive and well. However, even in this thriving environment, new businesses with cash flow issues might not survive past the first year. Plus, cybersecurity threats can disrupt new businesses that have online offerings.
Tracking spending and expenses can be vital for a new business to stay ahead of cash flow issues.
“I’ve been an entrepreneur for over three decades and have started five successful small businesses,” says Michael J. Kappel, founder and chief executive officer of Patriot Software. Patriot Software provides digital solutions for small businesses to help with accounting, payroll, time and attendance and HR management.
“I set out to disrupt the market by creating accounting and payroll software that would help other business owners keep their time and money.”
LendingTree turned to Kappel to better understand the cash flow and cybersecurity issues small businesses face.
Q: According to the U.S. Bureau of Labor Statistics, about 20% of U.S. small businesses fail within the first year, and nearly a third of them cite cash flow problems as a reason for failure. Do you feel that companies that use business credit cards to address cash flow issues have a better chance of success? Why or why not?
Kappel: Cash flow problems can make everyday business tasks like covering payroll or paying expenses a nightmare. Credit cards can make sense for short-term liabilities and paying monthly subscription services like accounting or payroll software. But, a good rule of thumb is to always pay off your credit card balance each month to avoid interest fees and overspending, which may hinder any chance of success for your business.
Q: How does Patriot Software tailor its offerings in the marketplace to combat cybersecurity concerns that business owners have when conducting business online?
Kappel: The safety and security of our customers’ data is our No. 1 priority. That’s why we encrypt our customers’ data using some of the highest security hardware technologies and software techniques available anywhere; adhere to all federal privacy, anti-fraud and security laws; go through annual audits; and bond our employees.
Q: Do you feel that businesses that accept social payment platforms, such as PayPal or ApplePay, have an advantage over those that do not? Why or why not?
Kappel: Social payments are definitely on the rise in business, but at the end of the day, each business owner needs to do what works for their business. They know their customers and their needs best!