Lili Debuts 2023 Small Business “Tax Readiness” Report Revealing Over 70% Spend Nearly 20 Hours Filing Taxes
Survey uncovers the biggest hurdles for small business owners ahead of tax season
NEW YORK–(BUSINESS WIRE)–Lili, the all-in-one banking platform designed to save small business owners time and money, today released its 2023 “Tax Readiness” Report. The report compiles data from over 300 small business owners on topics ranging from how they file their taxes to how today’s market is affecting their businesses. Furthering the brand’s mission to support small business owners by saving them time and money, Lili has compiled this report to ensure millions of small business owners have access to the resources they need to scale their business.
Post-COVID, the data shows that U.S. small businesses grew by over 50% in 2021. In 2022, on average, half a million new small businesses opened every month. Meanwhile, over 70% of small business owners spent between 15 and 20 hours on their taxes during tax season. 70% reported overpaying on taxes due to the lack of available information about tax filing, lost receipts, and difficulty organizing quarterly expense reports.
Unlike the traditional American workforce, U.S. small business owners receive little guidance about filing taxes. Lili’s Tax Hub provides videos, how-to guides, tax forms, and more to give people what they need in order to optimize their taxes. Lili’s Tax Optimizer, which offers a write-off tracker, receipt scanner, quarterly expense report, tax bucket and Schedule C form, empowers its users to maximize all aspects of their financial health. In 2022, users who employed Lili’s Tax Optimizer received on average $4,500 in tax refunds, over two times what was received the year prior and well above the national average of $3,651.
“The number of U.S. small businesses has grown more than we have ever seen before,” said Lilac Bar David, co-founder and CEO of Lili. “Yet, the resources and accessible education available are insufficient. We see this in the amount of time the small business community spends on their finances each year and the lack of assurance they have from educational resources available to them.”
Key findings from the report show:
- Over 70% of respondents spent between 15 and 20 hours on their taxes during tax season
- The majority (60%) of SMBs reported spending upwards of $400 filing their taxes
- 59% of respondents under 40 prepare and file taxes on their own
- Most individuals in the 10-22% tax bracket expect their tax refunds to either be lower or significantly lower in 2023
- 50% of small business owners had to lay off employees in 2022
- Half of SMBs said they were strongly impacted by rising interest rates this year
- The majority of respondents have lost between $1,500-$2,000 due to the recession
This year, Lili is partnering with Keeper to help users file their taxes for less. Furthering its mission to help small business owners optimize their taxes, Keeper automatically links your bank to identify tax deductions from all 2022 purchases, eliminating time spent searching through old receipts. Keeper also uncovers tax write-offs transactions up to 18 months old and allows Lili users to file their taxes directly through the platform.
Read the full report here: lili.co/blog/small-business-tax-readiness-report
Founded in 2019, Lili is an all-in-one banking platform designed to save small business owners time and money. By combining a checking account with innovative accounting software and a tax optimizer, Lili helps business owners save time and money on all things finances. Backed by Group 11, Foundation Capital, AltaIR Capital, Primary Venture Partners, Torch Capital, Target Global and Zeev Ventures, Lili is founded by serial entrepreneurs Lilac Bar David and Liran Zelkha who have over 20 years of fintech experience and was named one of the 50 Most Innovative Companies in the World by Fast Company in 2022. Lili is headquartered in New York and serves customers in all 50 states. Banking services are provided by Choice Financial Group Inc., a Member FDIC. To learn more, visit lili.co.