A Shift in Strategy Amid Economic Uncertainty

PwC’s recent decision to lay off 1,800 employees reflects a deliberate shift in strategy as the firm navigates an increasingly complex economic landscape. The accounting giant’s move comes in the wake of slowing demand for certain advisory services and the need to streamline its operations, particularly in its products and technology teams. As PwC’s U.S. COO Tim Grady noted, “We are positioning our firm for the future, creating capacity to invest, and anticipating and reacting to the market opportunities of today and tomorrow.” This restructuring aims to align the firm’s workforce with evolving market dynamics, underscoring the difficult choices professional services firms must make in times of economic volatility.

One of the primary drivers behind this strategic pivot is the increasing pressure on PwC to remain competitive amid tightening economic conditions and rising interest rates. “Many professional-services firms have experienced weaker demand in certain areas due to higher interest rates and weaker economic conditions,” remarked Jeffrey Tefertiller, an AI and digital transformation leader. This sentiment is echoed by other industry experts who point out that advisory firms, in particular, are vulnerable to fluctuations in client spending during times of economic uncertainty. PwC, like its Big Four peers, had significantly ramped up hiring during the pandemic to accommodate rapid shifts in corporate demand. However, as the economy normalizes, the need for extensive advisory services has waned, prompting the firm to reevaluate its resource allocation.

The decision to restructure is not isolated to PwC, but reflects a broader trend within the professional services sector. “Execution of our strategy requires tough decisions, including those that impact our workforce,” said Paul Griggs, PwC’s U.S. senior partner, in an internal memo to staff. Griggs highlighted the need for the firm to “embed” its technology teams more closely with core business operations, a move that reflects the increasing importance of digital transformation. As PwC reconfigures its approach, it is focusing on integrating advanced technologies such as generative AI into its core service offerings, a strategy that aims to differentiate the firm in an increasingly competitive marketplace.

Indeed, the growing role of technology—particularly AI—is shaping PwC’s long-term vision. Joe Atkinson, PwC’s global chief AI officer, has emphasized the need for firms to empower their employees with the right tools to remain competitive. “It’s important to give employees the proper tools to carry out their responsibilities,” Atkinson said, underscoring PwC’s commitment to innovation. However, the pivot towards more technology-focused solutions also means that certain roles—particularly those focused on traditional advisory functions—are becoming obsolete, leading to a reduction in headcount.

While PwC has been proactive in making these adjustments, the layoffs also reflect broader concerns about the health of the global economy. As some commentators have pointed out, large firms like PwC often serve as leading indicators of economic trends. “When firms like PwC lay off workers, it signals that their clients are tightening their belts,” noted digital transformation expert Aniket Joshi. In this context, PwC’s layoffs may be a bellwether for a broader slowdown across the professional services industry, particularly as firms grapple with the dual challenges of technological disruption and economic uncertainty.

In sum, PwC’s decision to lay off 1,800 employees is part of a broader strategy to realign its workforce with market realities while positioning itself for future growth. By restructuring its operations and focusing more on technology, PwC is betting that its investments in AI and digital transformation will pay off in the long term. However, the firm’s workforce reductions also serve as a reminder of the economic headwinds facing the industry, as companies recalibrate their operations in response to shifting client demands and a challenging macroeconomic environment.

Comparisons With Industry Peers

PwC’s decision to lay off 1,800 employees isn’t happening in isolation; rather, it mirrors broader restructuring efforts across the professional services sector, particularly among the Big Four accounting firms. In 2023, Deloitte, KPMG, and Ernst & Young (EY) all executed sizable layoffs, collectively shedding thousands of jobs across their U.S. operations. These cuts were primarily driven by declining demand in advisory services and a growing focus on efficiency and technology integration. The moves by PwC’s peers highlight similar pressures that PwC is now responding to, as it looks to remain competitive while streamlining operations.

KPMG’s layoffs, which impacted over 2,700 employees, were particularly notable as they occurred in two rounds throughout 2023. The firm’s decision to reduce headcount, largely concentrated in its advisory division, came as a response to slower growth in consulting services and a softening in demand. Tim Grady, PwC’s U.S. COO, remarked, “We have seen similar moves from our competitors as the industry undergoes a structural shift. We believe our realignment will position us better to capture future growth opportunities.” Much like PwC, KPMG emphasized that the cuts were part of a broader strategy to adapt to changing market conditions while focusing on core strengths.

Similarly, EY implemented significant reductions in 2023, eliminating 3,000 jobs. The firm cited challenges stemming from higher interest rates and reduced client spending in its advisory practices. According to industry insiders, many professional services firms had aggressively expanded their advisory businesses during the pandemic, only to find that demand for these services had cooled in the post-pandemic environment. As one industry expert noted, “Professional services firms like PwC and EY invested heavily in hiring during the pandemic to meet a surge in client needs. Now, with the economic climate shifting, they are recalibrating to align with more sustainable demand levels.”

Even Deloitte, which had largely avoided significant layoffs during the pandemic, announced a reduction of 1,200 workers in 2023. The firm faced similar challenges with slowing demand for advisory services and the growing need to streamline its operations in the face of economic headwinds. These layoffs, according to Deloitte executives, were essential to ensure the firm remained agile and could invest in high-demand areas like digital transformation and AI.

For PwC, the decision to follow suit with its own layoffs signifies the growing pressure across the Big Four to rethink their business models and adapt to a new reality. As Paul Griggs, PwC’s U.S. senior partner, pointed out in a memo to employees, “We must continue to evolve, ensuring our products and services align with our clients’ changing needs. This requires difficult decisions, including workforce reductions in areas that are no longer aligned with our strategy.”

Beyond the Big Four, other professional services firms have also been forced to take similar actions. Grant Thornton, a midsize competitor, laid off 350 workers in May 2024, further illustrating that firms across the spectrum are facing headwinds. The common thread among these layoffs is not just the immediate impact of economic uncertainty but also the longer-term implications of automation and AI. As Jeffrey Tefertiller, an industry expert, noted, “The integration of AI is changing the landscape of professional services, making some roles redundant and prompting firms to shift their focus towards more technology-driven solutions.”

These moves, however, do not come without risks. While layoffs and restructuring may help firms maintain profitability in the short term, they also risk damaging morale and potentially losing talent to more nimble competitors. PwC’s latest cuts, alongside those of its peers, illustrate the delicate balance professional services firms must strike as they adapt to a rapidly changing marketplace.

Technology at the Heart of Change

PwC’s focus on technology is a key pillar of its strategic restructuring, signaling a shift to adapt to the rapid rise of automation, artificial intelligence (AI), and data-driven solutions. As traditional advisory services face declining demand, PwC is betting on its internal innovation to drive future growth, aligning its tech teams more closely with core business functions. This realignment is aimed at fostering greater agility and responsiveness to evolving client needs.

Joe Atkinson, now PwC’s Global Chief AI Officer, emphasized the firm’s commitment to building proprietary technologies. “We believe that giving our employees the tools they need is crucial—not just updating them on industry trends but equipping them to create real value,” Atkinson remarked during a recent interview. This ethos is why PwC continues to build its own products, such as the ProEdge platform, instead of relying on third-party solutions. ProEdge offers over 150 immersive learning experiences, training employees on new skills like AI, data privacy, and supply chain management, which PwC sees as critical to navigating a rapidly shifting business landscape.

The firm’s increased focus on AI and automation is not just about maintaining competitiveness—it’s also about managing risk. “AI is no longer a futuristic concept; it’s happening now, and it’s reshaping every facet of business,” said Tim Grady, PwC’s U.S. COO. “For us, it’s about embedding AI into our core operations to streamline processes and improve efficiency.” This restructuring reflects broader trends in the professional services industry, where firms are increasingly relying on AI to manage tasks traditionally handled by employees, such as data analysis and risk management.

However, the embrace of AI and automation brings with it a significant challenge—managing the delicate balance between technological advancement and workforce impact. PwC’s decision to embed technology developers more closely within business lines is aimed at ensuring that these innovations serve the company’s core advisory and audit services without displacing too many jobs. As one employee noted on LinkedIn, “It’s clear that while these layoffs are about strategy, they are also an indication that AI is beginning to replace roles that were once seen as indispensable.”

This technology-driven transformation isn’t limited to internal operations. PwC’s clients, too, are seeking innovative ways to manage the risks and opportunities that come with AI. Atkinson, during his tenure as Chief Products Officer, emphasized that “technology has to be a value-driver for clients, particularly in areas like data privacy, regulatory compliance, and supply chain management.” As more companies look to navigate these challenges, PwC’s approach to AI is designed to help businesses remain agile and competitive.

The challenge, however, remains in convincing both employees and clients that this transformation is not just about cost-cutting but also about creating value. “The layoffs are tough, no question about it,” said a PwC partner familiar with the firm’s restructuring efforts. “But our goal is to realign talent to where it’s needed most—focusing on key assets and areas of growth like generative AI, where we see immense potential.”

As PwC moves forward with its restructuring plan, it’s clear that technology is not just a part of the equation but at the very core of the firm’s future. How well PwC can navigate this delicate balance between workforce reduction and technological innovation will be a key factor in determining its success in a rapidly changing professional services landscape.

Implications for the Broader Economy

The layoffs at PwC are more than just a reflection of internal restructuring—they signal a broader shift in the professional services industry, and potentially, the wider economy. PwC’s decision to cut 1,800 jobs, particularly in advisory and tech roles, highlights a cooling demand for certain consultancy services as businesses adapt to economic headwinds, rising interest rates, and technological advancements. As noted by Jeffrey Tefertiller, an AI and digital transformation leader, “This is much worse news than most realize. The Big Four have a great pulse on the economy, and when they lay off, they know something.” PwC’s layoffs, in other words, could be a harbinger of larger economic shifts.

Many firms, not just PwC, ramped up hiring during the pandemic to cope with the sudden shifts in business operations and increased demand for advisory services, particularly in areas like supply chain management and risk assessment. However, as the post-pandemic boom wanes and economic pressures mount, firms are finding they overestimated the need for such a large workforce. “The firms, some of which focus on individual performance as the basis for cuts, risk losing stature if they slash a sizable chunk of jobs at once,” a report from The Wall Street Journal explains, further highlighting the delicate balancing act these firms are now navigating.

The broader professional services industry has already seen similar moves from PwC’s competitors. Earlier in 2023, Ernst & Young (EY), KPMG, and Deloitte collectively laid off thousands of workers, as demand for consulting services softened in the face of economic uncertainty. “It’s a trend we’ve seen across the board,” said Kelly B., a recruitment manager at Hermann Services. “If PwC is cutting jobs, it’s a clear signal that the consulting industry is tightening its belt—just as we’ve seen with other major players.”

Yet, the role of AI and automation in these layoffs cannot be ignored. Many experts believe that AI is playing a key role in reshaping industries, including professional services. “The big warning about AI wasn’t a Terminator scenario; it was job losses at a staggering rate,” remarked Matthew Lamont, a digital transformation expert. While PwC’s leadership maintains that these layoffs are primarily tied to economic factors, insiders suggest that AI-driven automation is also a significant factor in reducing the need for certain roles, particularly those that handle repetitive tasks like auditing and data analysis.

Moreover, PwC’s restructuring could ripple into other industries that rely heavily on professional services. As PwC and its competitors streamline operations and focus on emerging technologies like AI, other sectors such as financial services, manufacturing, and healthcare—industries traditionally reliant on Big Four consulting firms—may feel the impact. “If the consulting firms are cutting back, it’s likely because their clients are cutting back too,” said Aniket Joshi, a digital transformation consultant. “That’s where the real concern lies—it’s not just about PwC, but about the broader economic ecosystem they serve.”

The timing of these layoffs, right before the holiday season, adds to the uncertainty. “Layoffs, especially of this magnitude, right before the holidays, suggest more than just a realignment of resources,” said Patricia H., a leadership coach. “It’s indicative of where the economy is headed, and unfortunately, it may not be a positive direction.”

The ripple effects of PwC’s layoffs, combined with similar moves by its competitors, may ultimately signal that companies across multiple sectors are re-evaluating their spending, particularly on consulting services, which are often seen as discretionary. As the economy continues to face challenges like inflation and tightening monetary policy, PwC’s workforce cuts may mark the beginning of broader cutbacks across the consulting world.

PwC’s Future

As PwC navigates its largest workforce reduction since 2009, the company’s strategic realignment aims to position it for long-term growth while weathering immediate challenges posed by economic uncertainty and shifts in client demands. PwC has made it clear that these layoffs are part of a broader effort to streamline operations and invest in areas where demand is growing, particularly in technology-driven solutions such as artificial intelligence (AI), automation, and data analytics.

Paul Griggs, PwC’s U.S. senior partner, emphasized the necessity of these changes in a memo to employees: “We are positioning our firm for the future, creating capacity to invest, and anticipating and reacting to the market opportunities of today and tomorrow.” This vision is focused on reshaping the firm’s core services while embedding technology solutions more deeply into its operations. As Griggs pointed out, the restructuring of the products and technology teams will enable PwC to “align talent with high-growth areas,” which is a crucial step as the firm looks to maintain its competitive edge.

One of the key areas of focus for PwC’s future is the integration of artificial intelligence across its services. PwC’s former chief products and technology officer, Joe Atkinson, who recently became the firm’s global chief AI officer, has been instrumental in spearheading these initiatives. Atkinson remarked in a 2021 podcast that PwC is committed to building its own proprietary technology tools rather than relying on third-party solutions. “Our goal is to ensure that our teams have the best tools available to deliver high-quality services to our clients,” Atkinson said, stressing the importance of staying ahead of the technological curve.

This focus on technology, particularly AI, is expected to drive much of PwC’s future growth. In June 2024, Atkinson underscored the need for PwC to “embed AI capabilities throughout the firm,” a move that will likely reshape not only the products and services offered but also the skill sets required of its workforce. Tim Grady, PwC’s U.S. COO, further elaborated on the firm’s strategy in his statement to The Wall Street Journal: “We are aligning our workforce to better support our strategy, including attracting and moving the right talent and skill sets to the areas where we need them most.” This shift is crucial as PwC competes with other Big Four firms that are also ramping up their AI investments.

Looking ahead, PwC faces a delicate balancing act. While the layoffs are a necessary response to declining demand in some areas, the firm’s commitment to technology and innovation will be key to securing its place in the market. The challenge will be maintaining morale and retaining top talent amid restructuring efforts, as industry insiders have noted. One former PwC employee remarked, “The firm’s reputation for overworking its employees and the recent layoffs may drive some of its best people to seek opportunities elsewhere.”

However, despite these challenges, there remains optimism about PwC’s future. Industry analysts point out that PwC, like its peers, is adapting to the same pressures facing the entire professional services sector. The shift toward automation and AI is transforming the landscape, and PwC’s proactive approach could position it well in the long term. As one analyst put it, “The firms that will succeed are those that invest in technology and align their workforce to meet the changing needs of their clients. PwC is making the right moves to do just that.”

Ultimately, PwC’s future hinges on how well it executes its current strategy and its ability to adapt to ongoing changes in the professional services industry. The firm’s leadership, led by Griggs and Atkinson, appears committed to embracing innovation while ensuring that PwC remains competitive in a rapidly evolving marketplace. As Griggs noted in his memo, “We must continue to evolve and transform, ensuring our products and services align with the needs of the future.” This forward-thinking approach will be critical as PwC seeks to navigate the uncertainties ahead and secure its position as a leader in the industry.

Yet, how do you choose the right one? Below will walk you through the top qualities cloud-based accounting software should possess. From ease of use to automation capabilities, you will understand what truly matters and make an informed choice that takes your business to new levels.

1. Ease of Use

Ease of use is paramount when selecting cloud-based accounting software. A user-friendly interface can make the transition smoother for your team, reducing the learning curve.

Look for an intuitive system with clearly labeled features and simple navigation. Additionally, the software should offer quick setup and seamless integration with your existing systems. 

Access to customer support is also crucial. If you encounter issues or need guidance, prompt and helpful support can save you time and effort. Remember, software should simplify your tasks so you can maintain high productivity.

Consider QuickBooks, for instance. Its intuitive interface, with a clearly marked table and easy navigation, makes it a favorite among users. Sage Business Cloud also smoothly integrates with numerous third-party apps, and FreshBooks offers comprehensive support through multiple channels, ensuring help is at your fingertips when needed.

2. Scalability

Scalability in cloud-based accounting software is essential, ensuring it grows with your business. This flexibility is vital across various sectors. This year, plans to invest in such software are on the rise, with about 52% of nonprofits, 58% of education organizations and 57% of government bodies intending to do so.

One example that offers scalable solutions is NetSuite, providing small businesses with the resources they need while also accommodating large corporations with more complex requirements.

Meanwhile, software like Zoho Books provides flexible pricing plans, allowing businesses to upgrade as they expand. Therefore, always choose software with the capacity to adapt to your business’s evolving needs.

3. Security

Security is another key aspect when choosing cloud-based accounting software. You are entrusting the software with sensitive financial data, so robust protection is non-negotiable.

Look for features such as data encryption, which scrambles your information to make it unreadable to unauthorized users. Another feature it should have is two-factor authentication, which adds an extra layer of security by requiring a second verification step.

Additionally, data backup and recovery are essential. Sage Business Cloud, for instance, regularly backs up your data and allows for easy recovery in case of loss. In a world where cyberattacks are a significant threat to businesses, prioritizing security is crucial.

4. Mobility

With the world being highly interconnected and fast-paced, mobility in cloud-based accounting software is game-changing because it provides the flexibility to manage your finances. For instance, FreshBooks offers a mobile app with a range of functionalities, from tracking expenses to creating invoices.

Similarly, QuickBooks’ mobile app provides real-time updates, ensuring you are always informed about your business’s financial health. This kind of on-the-go access can enhance efficiency, allowing you to make quick, informed decisions.

When choosing your cloud-based accounting software, consider the mobile features it offers. Your business does not stop when you are away from your desk, nor should your software.

5. Comprehensive Reporting

Comprehensive reporting is another important quality to consider in cloud-based accounting software. Detailed and customizable financial reports give you a clear picture of your business’s financial health. 

Real-time reporting should also aid your decision, as it is beneficial in delivering up-to-the-minute financial data. Look for a variety of report types, such as profit and loss statements, balance sheets and cash flow forecasts. Sage Business Cloud offers these and more.

With comprehensive reporting, you can make informed business decisions, so ensure your chosen software delivers in this aspect.

6. Integration Capabilities

The ability to integrate with other business tools is a critical quality of a good cloud-based accounting software. This feature enhances productivity by enabling seamless data flow between systems. 

For example, software like QuickBooks integrates with apps like PayPal and Shopify, simplifying the tracking of sales and payments. Xero, too, boasts integration capabilities, connecting with over 800 third-party apps, including those for inventory management, CRM and time tracking.

Such integration reduces manual data entry and potential errors, making your business operations more efficient. When choosing your software, consider how well it plays with other tools you depend on to make the most of its integration abilities.

7. Cost-Effectiveness

Cost-effectiveness is a key consideration when selecting your cloud-based accounting software. Understanding the pricing structure becomes even more important in light of recent industry trends. Once lauded for its rapid growth during the pandemic, the cloud computing industry now shows signs of deceleration. Rising costs have raised concerns for many businesses, with some high-profile companies even scaling back their commercial cloud investments.

This context underscores the importance of assessing not just the upfront cost of the software but also its long-term financial implications. Consider the value for money, with some solutions offering time-saving features, like automatic billable time tracking, boosting their cost-effectiveness.

For instance, while software like QuickBooks might seem pricey at first glance, its comprehensive capabilities could lead to significant savings over time. Ultimately, the goal is not to find the cheapest software but the one that provides the greatest value for your investment.

8. Customer Support

Customer support is a vital feature to consider in cloud-based accounting software, as efficient, readily available support can enhance your user experience — especially when issues arise.

For example, Xero offers round-the-clock email support, ensuring assistance is always within reach. Sage Business Cloud provides multiple support channels for support, including live chat, email and phone. Additionally, access to online resources and self-help options, like a comprehensive knowledge base and community forums, can offer invaluable troubleshooting assistance.

When choosing your software, remember the importance of robust customer support. It can significantly improve your user experience. 

9. Automation Capabilities

Automation capabilities are a major advantage of cloud-based accounting software, as these features can significantly improve efficiency and accuracy. For instance, FreshBooks is great for automating tasks like invoicing and expense tracking — freeing up your time for other business activities.

Moreover, other types of software leverage machine learning and artificial intelligence (AI) to automate processes like bank reconciliation. This is vital in saving time while also minimizing manual errors.

Automation can transform the way you manage your finances, making it more streamlined and less labor-intensive. So when selecting your software, consider how its automation capabilities can benefit your business.

Choosing the Right Cloud-Based Accounting Software for Your Business

Choosing the right cloud-based accounting software is a critical step that can significantly impact your business’s success. From the ease of use and scalability to robust security and automation capabilities, the qualities mentioned here are essential to consider.

Keep in mind that your software should be a partner in your business, not just a tool. It should simplify tasks, provide valuable insights and ultimately drive your business growth.

Now that you are armed with this knowledge, you are ready to find the perfect software solution for your business. Make an informed choice, take the plunge, and watch your business soar to new heights.

According to Bloomberg, the company recently hired Michel Del Buono as chief investment officer. His duties will include overseeing a range of wealth-management services.

Providing wealth-management services could be a highly profitable business for the firm. Companies usually charge 1% of a client’s assets, with profits reaching as high as 50%.

While a16z did confirm Del Buono’s hiring to Bloomberg, it declined to comment on any future business plans.

Enter our protagonist: the CFO of a company that sells Luxury Perfumes to retailers across the United States. In the intricate dance of commerce, this CFO is akin to a maestro, orchestrating the flow of funds and ensuring that the company’s coffers remain flush. But how does he accomplish this Herculean task? Let’s peel back the layers and delve into the strategies employed by this financial virtuoso.

Automating Billing Practices: In the early days of the company’s inception, manual invoice creation may have sufficed. However, automation becomes paramount as the business scales and transaction volumes soar. Our savvy CFO understands this all too well. Leveraging cutting-edge ERP software, he has implemented a seamless invoicing system that generates invoices automatically with each shipment of perfumes from the warehouse. Efficiency, thy name is automation.

Negotiating Short Payment Terms: Ah, the delicate art of negotiation. The temptation to extend payment terms can be substantial when forging agreements with new customers. After all, who wouldn’t prefer a little extra time to settle their debts? However, our CFO knows that shorter payment terms are essential for maintaining healthy cash flow. He strikes a delicate balance through deft negotiation tactics, ensuring that payment terms are fair and reasonable.

Implementing Dunning Processes: Enter the age-old practice of Dunning, a term harkening back to the 17th century when business owners communicated with customers to collect overdue payments. Our CFO has modernized this practice, implementing automated reminders that escalate in intensity as payment deadlines approach. From gentle nudges to firm warnings, these reminders ensure that delinquent payments are swiftly addressed, preserving the company’s financial integrity.

Conducting AR Aging Reviews: Armed with weekly AR aging schedules, our CFO conducts meticulous reviews to pinpoint payment trends and identify potential issues. By analyzing aging reports, he can identify bottlenecks in the payment process and take proactive measures to address them. This proactive approach ensures that the company’s AR remains healthy and cash flow remains steady.

Analyzing Key Performance Indicators (KPIs): Our CFO’s quest for financial excellence doesn’t end there. He’s a firm believer in the power of data-driven decision-making, and he leverages key performance indicators (KPIs) to gauge the health of the company’s AR. Metrics such as accounts receivable to sales ratio and days sales outstanding (DSO) provide valuable insights into the efficiency of the company’s AR management practices, allowing our CFO to identify areas for improvement and implement corrective measures.

In a world where financial prowess can mean the difference between success and failure, our CFO stands as a beacon of excellence. Through strategic planning, meticulous execution, and a keen eye for detail, he ensures that the company’s AR remains healthy, cash flow remains robust, and financial integrity remains intact. So, whether you’re a seasoned CFO or an aspiring financial wiz, take heed of these lessons from the trenches of commerce. After all, in the ever-evolving landscape of finance, knowledge is power, and mastery is key.

As a guest on Small Business Quick Wins, presented by Thrive, Hayden shared her expertise and insights into the pitfalls to avoid and the tips that small business owners need to know for effective accounting and bookkeeping practices.

Hayden’s journey to becoming an accounting expert started nine years ago when she founded Kickstart Accounting. Drawing from her experience as a CPA and CFO, Hayden recognized the need to provide tailored accounting solutions to small businesses. Her company has since become a leading firm in the field, specializing in helping small businesses make informed financial decisions.

One of the key points Hayden emphasized is the importance of separating personal and business finances—a common mistake she encounters among small business owners. By maintaining separate accounts for business transactions, owners can ensure clarity and compliance, reducing the risk of legal and financial complications.

Moreover, Hayden highlighted the misconception that business owners need to be proficient in accounting before hiring professional help. She debunked this myth, emphasizing the value of outsourcing specialized tasks to qualified experts. Whether it’s bookkeeping, tax preparation, or payroll management, Hayden stressed the importance of entrusting these responsibilities to professionals, allowing business owners to focus on what they do best.

Throughout the discussion, Hayden underscored the role of accountability in financial management. As an accountability partner to her clients, she ensures that they stay organized and compliant with financial regulations. By providing regular reports and guidance, Kickstart Accounting helps small business owners confidently navigate the complexities of financial management.

In addition to her practical advice, Hayden addressed the common misconceptions surrounding bookkeeping and accounting. She emphasized the need for clarity and transparency in financial reporting, urging business owners to prioritize accuracy and consistency.

Wrapping up the conversation, Hayden shared her passion for empowering entrepreneurs and helping them thrive in their business endeavors. Through her podcast, “Business by the Book,” and personalized services, she remains committed to supporting small businesses on their journey to success.

As the podcast concluded, Hayden’s insights resonated with listeners. She offered practical solutions and dispelled myths surrounding accounting and bookkeeping. With her guidance, small business owners can approach financial management with clarity and confidence, knowing that they have a trusted partner in Kickstart Accounting.

With eCommerce growth continuing at an exponential rate, supply chain visibility has become increasingly important for companies looking to remain competitive in today’s digital marketplace. Not only do businesses need to meet customer demands for fast delivery times, but they also need to manage costs, minimize losses, and ensure security. 

Be that as it may, only 65% of companies are able to report full visibility across their supply chains, and 43% of small businesses are not tracking inventory levels at all. With economic uncertainty on the horizon and customer expectations at an all-time high, now is the time to invest in supply chain visibility so you don’t find yourself falling behind while your competition sails away with their loyal customers.

Benefits of Supply Chain Visibility for Ecommerce Businesses

There are a multitude of benefits to be realized through the implementation of supply chain visibility in eCommerce. These include:

Improved customer satisfaction and loyalty

The more visibility you have into your own supply chain, the better equipped you are to anticipate customer needs and deliver products in a timely manner. With improved visibility, eCommerce businesses can increase customer satisfaction by reducing their response times, improving delivery accuracy, and providing customers with real-time updates about the status of their orders. This helps foster greater loyalty from customers, which in turn increases the likelihood of repeat business.

Reduced costs associated with inventory management

“Knowing inventory costs is extremely important because they affect the majority of decisions one makes as a retailer,” explains Abir Syed, co-founder of UpCounting, an eCommerce accounting firm.

Unsurprisingly, inventory management is the single largest expense for eCommerce businesses. For every dollar a US retailer generates through revenue, they have $1.35 tied up in inventory. As such, being able to accurately track and monitor inventory levels is essential for minimizing losses and maximizing efficiency.

By leveraging supply chain visibility technology, businesses can reduce the amount of inventory they need to keep in stock and their associated costs. This can be achieved through better forecasting and planning, more precise order fulfillment processes, and improved inventory accuracy.

Increased efficiency and speed of delivery

Knowing where products are throughout their journey allows businesses to better plan and adjust for delays, ensuring customers get their items as quickly as possible. Supply chain visibility also facilitates increased collaboration between all parties involved in the delivery process, allowing for a transparent and overall more efficient supply chain.

Enhanced flexibility and scalability in supply chains

As the demands of customers and markets shift, businesses need to be able to quickly adjust their supply chains accordingly. With supply chain visibility, businesses can quickly adapt to changing conditions, such as unexpected spikes in demand or supply disruptions. This increased flexibility and scalability of the supply chain is essential for businesses to remain competitive and responsive. This scalability also benefits businesses as they grow and expand into new markets. 

Increased control over returns management 

Returns are an unavoidable part of eCommerce and managing them can be difficult. Supply chain visibility gives businesses the ability to track a returned item as it moves through the supply chain and make adjustments to minimize losses. This includes tracking returned items on their journey back to the supplier, identifying potential issues and quickly resolving any discrepancies.

Challenges of Implementing Supply Chain Visibility

While the benefits of supply chain visibility are clear, there are still some challenges associated with its implementation. These include:

Establishing and maintaining relationships with suppliers

Before any supply chain visibility technology can be deployed, businesses need to build relationships with their suppliers. This requires open communication and collaboration between all parties involved, as well as a certain level of trust.

“When it comes to choosing partners, it’s wise to do some research to ensure the best deal possible while emphasizing transparency and flexibility. This is invaluable during times of frequent supply chain disruption,” explains Roei Yellin, Co-Founder & Chief Revenue Officer of 8fig, a planning and funding platform for eCommerce companies. 

“Sellers shouldn’t be afraid to negotiate for a better deal and they should make sure that communication is open and honest. This is true of suppliers, 3PLs (third-party logistics providers) and any other partners brought in to help manage the supply chain,” concludes Yellin.

Complexity of the supply chain and data formats

Securing buy-in from all parties and managing the data exchange between different organizations is challenging. Not only do various supply chain participants have differing needs and processes, they also use different systems. Unifying these systems and ensuring harmonious data exchange can be difficult.

To overcome this, businesses need to create a single source of truth that all supply chain participants can work from. This means creating common protocols and standards that all parties are comfortable with and can adhere to, and potentially leveraging a third-party solution to manage the data exchange.

Costs associated with technology and infrastructure

The technology and infrastructure required for supply chain visibility can be costly. Businesses need to invest in the right hardware, software, and people to ensure that the system is secure and effective.

Fortunately, there are solutions to this issue. RFID and code-based tracking solutions, in particular, are relatively inexpensive and easy to implement. Companies such as Scurri allow you to easily create a single bar code for all carriers, as well as a reporting dashboard that gives you full control over your operations with actionable insights. 

Cybersecurity concerns

Data is the lifeblood of supply chain visibility and ensuring its security is paramount. However, supply chains are coming under increasing attack from hackers and malicious actors, making them vulnerable to data theft and manipulation.

In fact, 97% of organizations say they have experienced the negative consequences of a supply chain cyber breach within their operations, demonstrating just how prevalent these attacks have become.

As such, businesses need to ensure that they have the appropriate protocols in place to protect their data from cyber-attacks. This includes using secure networks and encryption, as well as regularly auditing system access and usage. Multichannel cyber security solutions, such as VMware, can also be of great help in mitigating cyber risks.

Conclusion

Supply chain visibility is becoming increasingly important in today’s volatile and highly competitive marketplace. However, if businesses are to reap the full benefits of a visible supply chain, they must first overcome the various challenges associated with implementation.

Ultimately, with careful planning, a comprehensive approach to risk management, and the right technology in place, businesses can ensure that their supply chain visibility efforts are successful and that they remain agile and competitive in the long run. 

Peloton has been struggling after being the darling of the pandemic bubble. As people sheltered and quarantined at home, the company’s fortunes skyrocketed, only to come crashing back down as things returned to normal. The company clearly hopes Coddington can help get things back on track.

Coddington formerly served as VP of Finance for Amazon Web Services. She will begin her job at Peloton on June 13. According to a regulatory filing, Coddington’s compensation will include an annual salary of $1 million, as well as $9 million in stock equity. The company will also provide $150,000 for relocation.

Coddington served as VP at Amazon since January 2021, and worked at the company for a total of six years. Prior to that, she held senior leadership roles at Adara, Walmart, and Netflix.

“Liz is a deeply talented finance executive and will be an invaluable addition to Peloton’s leadership team,” said Peloton CEO Barry McCarthy. “Having worked at some of the strongest and most recognizable technology brands, she not only brings the expertise needed to run our finance organization, but she has a critical understanding of what it takes to drive growth and operational excellence. I have seen her intellect, abilities, and leadership firsthand and am excited to work closely with her as we execute the next phase of Peloton’s journey.”

1. Invest in Work Mobiles

Rather than allow your employees to complete their work tasks from any old device, you should consider investing in special work mobiles for them. This will enable them to keep their work documents and communications on one device. This can prevent distractions while ensuring that your business’s data and information goes no further. 

When you are looking for a reliable work mobile for your staff, you should find one that is smart, offers a great range of compatible software applications, and is durable so that it can withstand the challenges of everyday life. You may also discover that providing a mobile phone for your employees boosts their morale and allows them to maintain an improved work-life balance. 

2. Look at SASE Security Solutions 

If your team is increasingly scattered between remote and mobile work, you need to take measures to improve the security of your business from afar. You can do this by investing in SASE security solutions. These solutions will allow you to stop worrying that the majority of your IT infrastructure is not within a single physical office. This is because they can move your security solutions to your network edge and ensure that they are well-integrated. This will help your team enjoy an excellent user experience when accessing your network remotely and enable them to use all your business apps without any faults. This means that you should look around for an SASE solution that can suit you. 

3. Limit Their Usage 

Although you might be happy for your employees to work in any way that suits them, you might be concerned that the use of mobile devices in your workplace or from home could lead to data breaches and leaks, especially if your employees decide to forward content or take photographs of sensitive information. 

By allowing your employees to use their mobiles, you might find that you do not know where your information is going or who can see it. In this case, you should limit where your employees can use their mobiles around your workplace, and you might also restrict how much they can access these phones to check that they do not have a negative impact on your company. 

4. Communicate With Your Employees

As well as looking after their health, when your employees are working from their mobiles, you also need to find ways to stay in communication with them. You can do this by downloading a great mobile communication app that has been designed with commercial ventures in mind. These could help you instant message or video call your employees whenever you need to, ensuring that you can check in with them regularly. 

Whether it’s a credit score, your focus on saving or how you spend your money, your financial habits impact more than your personal life. In fact, it can be a determining factor in your business’s success or failure.

1. Creditworthiness

One of the most significant ways personal finances influence your business’s outcomes is through your credit score. For many small businesses, securing loans or lines of credit is essential to funding your business, maintaining cash flow and fulfilling expansion plans. 

However, lenders may pull records of your personal credit score before providing you with any business credit. This is especially true when your business is in its infancy stage and still needs to establish a good credit history. 

A credit score of at least 670 or higher can give you the means to access low-interest loans and better credit terms. This provides you with the financial stability needed to gain traction for your business.

Conversely, a low credit score may lead to rejections or loans with high-interest rates, placing an extra financial burden on you and your business. If you need to work on your score, consider making timely payments and regularly checking your credit. A proper credit score will ensure you increase your chances of securing business funding.

2. Personal Debt

High levels of personal debt can create substantial vulnerabilities for a small business. When you are obligated to overwhelming debt, this can quickly drain your personal savings and leave you with less capital to invest in your company.

Racked-up debt often correlates to poor credit scores, further limiting your business’s access to credit. For example, a small business owner with high debt may have to use a significant amount of their income to pay it off. In turn, they may leave their business underfunded during critical periods for growth. 

Start getting rid of debt by utilizing the “debt avalanche method.” This tactic involves focusing on paying off debt with the highest interest rate. Then, you will make minimum payments each month on that account. 

Once you pay that debt, you can focus on settling the next debt with the highest interest and so forth. However, you should take the payment budget you previously used, plus some extra cash, to put it toward the next account. Implementing this strategy can give you a confidence boost as you keep going because it is a quick method for debt repayment.

3. Financial Discipline

Your personal financial habits often predict how you will manage your business finances. That is why it is crucial to implement financial discipline in your personal life. These tactics include:

• Sticking to a budget
• Avoiding unnecessary debts
• Making payments on time

Establishing these habits lets you maintain a positive cash flow and manage your business expenses wisely. Additionally, it allows you to plan for future financial needs. All of these factors are crucial for running a successful business.

To ensure you incorporate good financial habits, consider developing a strict budget for your personal and business endeavors. Start by creating a realistic budget that includes all your income sources and expenses, and consciously stick to it.

Sustaining this practice will give your a clear picture of your financial health. Plus, it will instill habits that avoid impulsive spending and keep your finances under control 

4. Personal Savings and Investments

Personal savings and investments are crucial when owning a small business, especially if it is new. They can provide you with a source of capital to kickstart your company, fund expenses and improve cash flow. 

For instance, an entrepreneur may need to dip into their personal savings to cover startup costs — such as paying for a new email marketing platform to set up campaigns and reach new customers. Or, they might need to invest personal assets into their company for business expansion. 

Therefore, it is important for small business owners to practice good savings and investment habits. One way to achieve this is by making it a habit of setting aside a portion of your income regularly. Doing so will help you build a monetary cushion over time. 

Additionally, you could diversify your investments to have a varied portfolio. That way, you reduce risks in your business and provide yourself with various sources of capital.

5. Personal Financial Buffer

A personal financial buffer can be vital, as it acts as a safety net and provides financial stability for your small business. A financial cushion could be in the form of emergency savings or liquidable investments, making it easy to manage unforeseen business expenses or downturns. Plus, it keeps you from accruing additional debts or utilizing crucial aspects of your operations.

For example, a small business owner with a financial buffer can still operate during a period of slow sales. As such, they can keep business as usual without the slow period impacting their business or personal lifestyle. 

Ensure you are gaining a healthy financial buffer by using the 50/30/20 rule. This rule suggests that you allocate a portion of your take-home pay to different parts of your personal life. For instance, 50% of your paycheck should go to necessities, while 30% goes toward things you want. The last 20% of your pay ends up in your savings, which is the portion that contributes to your financial buffer. 

Implementing the 50/30/20 is one of the easiest ways to save money, allowing you to build a reserve over time. As you place more money into your savings after each paycheck, you will have a solid foundation for supporting your business during challenging financial times.

Use Personal Finances for Small Business Success

Several facets of how you manage your personal finances have a way of affecting your business’s growth, stability and overall success. From your creditworthiness and spending habits to your personal savings, these are the most important aspects to pay attention to when focusing on your financial endeavors. 

Take the time to assess your financial situation and look at ways to build it up to a healthy status. While the task of building and managing your personal finances may seem laborious, hard work pays off in the long run and will give your small business the boost it needs to grow.

NTT has released its 2022 Global Network Report (via TechRepublic, and it paints a worrying picture about the state of many companies’ networks. A staggering 70% of CEOs believe their network is actually inhibiting their companies’ growth, while only 50% believe their network tech is aligned with business goals.

The adoption of new technologies, such as cloud deployments, AI, edge computing, and more, has led to a struggle to have staff with the necessary skills. In fact, 71% of organizations say they lack the necessary in-house talent to handle their network needs.

These challenges come at a time when the competitive and security factors driving advanced network adoption is higher than ever.

“Levels of investment in the network have surged, with the results of this research showing many organizations are leaning towards key partners and managed service solutions to fulfill their requirements,” said Amit Dhingra, executive vice president at NTT.

Because many executives are looking to network-as-as-service to help deal with these challenges, NTT emphasized the specific factors companies should consider:

“Businesses should consider security, skills competency, ability to scale, private 5G and software-defined networking when selecting a network service provider,” Dhingra said. “In the long term, blockchain, further AI and automation, AR and VR, quantum networking, 6G and photonic computing will affect how networks are delivered.”

NTT’s report is good news for tech workers, as it shows there are plenty of opportunities for advancement in the industry, and such opportunities show no sign of abating.

Generative AI is revolutionizing multiple industries, although many companies are still struggling to discover where generative AI shines. Intuit believes it can be used assist in running a small business and is embedding it across its product line.

Intuit Assist is designed to help guide users, providing help and even doing the hard work involved in the in preparing their taxes and running their business, according to the company.

“With the introduction of Intuit Assist, we’re taking a giant step forward in powering prosperity for all. We’re creating a future where we do the hard work for small businesses and consumers to fuel their financial success, helping them achieve their dreams,” said Sasan Goodarzi, chief executive officer of Intuit. “Leveraging our vast amounts of rich data and years of investment in AI and GenAI, we’re unlocking the power of our platform to reimagine AI-assisted customer experiences.”

“AI is fundamentally changing how we work and live. As people start to make financial decisions with the help of this technology, responsible stewardship and accuracy are paramount,” said Patrick Moorhead, founder, CEO, and chief analyst at Moor Insights & Strategy. “We believe Intuit stands out for its ability to harness robust data across the small business, tax, and consumer finance segments to deliver accurate and personalized AI-driven experiences at scale. This responsible stewardship, paired with Intuit’s investments in AI and data over the last decade, boils down to a generative AI leadership position in the consumer and small business fintech space.”

The company is integrating Intuit Assist with TurboTax, QuickBooks, Credit Karma, and Mailchimp.

Yahoo Finance is one of the most popular destinations on the web for investment news, and Yahoo sees an opportunity to expand the insights its provides with Commonstock.

“Our vision for Yahoo Finance is to be the premier singular destination for all our customer’s financial needs,” said Tapan Bhat, President of Yahoo Finance. “Our platform caters to every stage of the investment process – from providing pre-trade market news and analysis, facilitating engaging pre- and post- trade conversations within our community of like-minded investors, to offering effective self-directed portfolio management tools and insights. Acquiring Commonstock reinforces this vision. The Commonstock team has built a trusted community, sharing high-quality insights and knowledge that help everyday investors create wealth. Together, Yahoo and Commonstock will further empower investors of all skills and levels through a one-stop shop for smart financial decisions.”

Commonstock already has 150 million monthly global users, significantly growing Yahoo Finance’s user base.

“Joining Yahoo Finance is a tremendous opportunity to build community and products on the largest consumer finance stage, which will positively impact millions of loyal users,” said David McDonough, CEO and founder of Commonstock. “For me, it’s personal. Yahoo Finance changed my career trajectory during the financial crisis over a decade ago. I was able to teach myself about the stock market and learned from other investors on the Yahoo Finance message boards. The unique blend of Yahoo’s reach and Commonstock’s expertise in creating retail investment communities is an incredibly powerful combination. This acquisition will allow us to accelerate our mission at scale, emphasizing community-driven knowledge and ensuring the amplification of quality insights to separate signal from noise.”

Terms of the deal were not disclosed.

The Market at a Glance

The Industrial Mold Market is positioned for considerable growth, with its valuation projected to leap from $25.3 billion in 2022 to an impressive $46.9 billion by 2032. This expansion is driven by a host of factors, such as the growth of manufacturing sectors like automotive, aerospace, and consumer electronics.

This growth not only impacts the manufacturing sectors but also has ripple effects across the global supply chain. As molds are essential for producing components in various industries, their increased demand and technological advancements directly influence the efficiency and reliability of supply chains worldwide.

Key Players and Innovations

Renowned names in the industry like Amada, TRUMPF, DMTG, DMG Mori, and US Industrial Machinery are shaping this market’s trajectory. Notably, LS Mtron recently launched an AI-based smart injection molding system, which has been designed to enhance part quality while reducing costs and speeding up production.

The Role of Technology

Technology has been a driving force in shaping the industrial mold market. The integration of Industry 4.0 technologies, like IoT sensors and data analytics, is making strides in mold monitoring and maintenance. This technological landscape isn’t static; it’s continually evolving, with companies investing in advanced materials and sustainable practices.

Trends: Rapid Prototyping and More

A major trend in this sector is rapid prototyping, which allows for accelerated design-to-production processes. Within this context, prototype injection molding serves as a useful tool for swiftly generating test components. This practice aids in quicker design approvals, making the entire manufacturing process more streamlined and efficient.

Challenges on the Horizon

This growth is not without its challenges. Economic fluctuations and trade tensions pose a risk to industrial production and, subsequently, the mold market. Companies must keep abreast of environmental regulations and continually invest in advanced mold-making technologies, which can be a costly endeavor.

The Bottom Line

The Industrial Mold Market is in an exciting phase of growth and innovation. While the market is poised for substantial expansion, it’s not without its challenges, including economic instability and the need for constant technological investment. With new opportunities in emerging markets and increasing demand for customization, this market offers a complex yet promising landscape for the future of manufacturing.

By encapsulating the key elements of the press release, this analysis aims to provide a comprehensive understanding of the Industrial Mold Market’s current state and future prospects.

Under US law, taxpayers that earn less than $69,000 per year can file their taxes free. While Intuit technically offers a free option, the company has faced ongoing accusations that it makes its free option difficult for users to find, thereby unfairly charging users who shouldn’t be paying.

The FTC has weighed in, upholding a decision by Chief Administrative Law Judge (ALJ), D. Michael Chappell “that Intuit has engaged in deceptive advertising in violation of Section 5 of the FTC Act and said that the defenses that Intuit raised lack merit.”

Under the FTC’s order, Intuit will not be allowed to market its services as “free” without significant changes to its current practices.

The Commission’s Final Order prohibits Intuit from advertising or marketing that any good or service is free unless it is free for all consumers or it discloses clearly and conspicuously and in close proximity to the “free” claim the percentage of taxpayers or consumers that qualify for the free product or service. Alternatively, if the good or service is not free for a majority of consumers, it could disclose that a majority of consumers do not qualify.

The order also requires that Intuit disclose clearly and conspicuously all the terms, conditions, and obligations that are required in order to obtain the “free” good or service. If the advertisement is space constrained and not displayed on any TurboTax website, app, email or other company owned or controlled platform, Intuit is not required to include all the terms and conditions in the advertisement itself but must disclose either that a majority of consumers do not qualify for free (if true) or the percentage that do as well as provide a link in such space-constrained online ads that details all the terms and conditions, according to the Commission order.

The order also prohibits Intuit from misrepresenting any material facts about its products or services such as the price, refund policies or consumers’ ability to claim a tax credit or deduction or to file their taxes online accurately without using TurboTax’s paid service.

The 80/20 budget’s primary tenet is that by prioritizing your savings, you’re establishing a strong financial foundation without performing too much mental arithmetic. As long as you give your savings account its fair share every month, you don’t need someone else telling you how to spend your money. 

For some, this flexibility makes budgeting much less intimidating and more accessible. For others, the “pay yourself first” way lacks structure and can lead to overspending. Keep reading to find out where you fall on this scale. Below, you’ll learn everything there is to know about the 80/20 budget.

The 80/20 Budget, Defined

The 80/20 budget splits your take-home pay (that’s your income minus all deductibles) into two main categories:

1. Savings
2. Spending

Let’s get into the meaning behind the categories.

1. What Is Your Savings Category?

Savings assume 20 percent of your take-home pay, to be split between your many goals, including emergency, sinking, and retirement funds. While these savings are all vital to healthy finances, they serve different purposes in your life. 

Sinking funds help you save up for big, planned purchases like vacations, concert tickets, gadgets, and renovations. Your goal reflects your unique purchase, so there are no rules about how much you need. 

An emergency fund is by far more important, as it helps you tackle the unexpected. These savings give you the financial flexibility to make urgent repairs or cover medical expenses, even when your paycheck is tied up with the usual bills. To ensure you’re prepared for nearly anything, you should aim to save three to six months of living expenses in this fund eventually.

According to the Economic Hardship Reporting Project director Alissa Quart, the average American family would take more than two years to squirrel away just one month of living expenses. If your emergency arrives faster than you can save, consider an online loan. Legitimate online loan companies like MoneyKey provide and service online loans that work as backup to insufficient savings.

Online loans with quick, virtual applications can streamline the borrowing experience, so you know if you qualify without delay. This automated approach to online loans helps you react quickly to unexpected expenses that have a short timeline.  

Lastly, your retirement fund supplements your pension and provides income for when you stop working late in life. Generalized financial advice recommends saving one million dollars in this fund by the time you retire; however, you may need more or less depending on your lifestyle. Such a large savings goal is easier to achieve the earlier you start saving, as you can capitalize on annual compound interest. 

2. What Is Your Spending Category?

By necessity, your spending category absorbs everything left out of the funds explained above. You’re expected to cover your housing costs, online loan payments, utility bills, groceries, taxes, and fun everyday expenses with the leftover 80 percent. 

Since it’s responsible for both your essential and discretionary expenses, this category has a lot of pressure riding on it. You need to make sure your reserve enough of this cash to cover all your essentials before you start splurging on discretionary spending. 

What Are the Pros of the 80/20 Budget?

People who prefer a more laid-back approach to budgeting will appreciate this method. The 80/20 budget doesn’t have a lot of rules, besides the one about saving, so you can spend your money organically as you see fit. 

Another advantage to adopting this budget is how much time you’ll save compared to other methods, particularly the 50/30/20 budget. The 80/20 is a simplified version of the 50/30/20 budget, first popularized by Elizabeth Warren in the early noughties. She recommends splitting your take-home pay between essentials, wants, and savings, each taking their respective 50, 30, and 20 percent of your income. 

Organizing spending between your essentials and wants can be tricky, especially when it comes to categories that overlap, like groceries and takeout, clothing, and phone bills. (You need a phone to communicate, but do you really need that 50GB of data?). 

Eliminating the boundaries between essentials and wants removes some of the stress you feel for finding labels for all your spending. 

What Are the Cons of the 80/20 Budget?

This budget can be challenging for those people who prefer having orderly categories for their spending. If you need structure to keep you on task, the 80/20 budget may be too lenient for your liking. 

When you don’t track your spending, you can easily lose track of how much money you spend. You can accidentally spend most of your cash on frills and not have enough to pay your bills at the end of the month. 

This can jumpstart a cycle of paying bills late, accruing late fines, and taking out online loans to recover. While an online loan or line of credit can help in an emergency, it shouldn’t be the way you balance your budget. 

Bottom Line: 

The 80/20 budget works best for people who can keep a mental tally of their spending in their heads. More importantly, they don’t need to keep a detailed list of their spending to ensure they pay for the important things first before they indulge in the fun stuff. However, if you require structure to keep your spending on track, you might fare better by choosing an alternative option, like the 50/30/20, reverse, or envelope budgets.

According to research by PitchBook, via Bloomberg, VCs are tightening the purse strings in 2023 amid a slowing economy. In fact, the 3,011 startups funded last quarter represent a third less than the same period in 2022.

Similarly, the $39.8 billion VCs spent is roughly half of what they spent in the year-ago quarter. As Bloomberg points out, when accounting for the fact that $6.5 billion of that funding went to Stripe — a relatively safe bet for VCs — the overall funding picture looks even worse.

Early stage startups are being especially hard hit, with angel and seed investment seeing the biggest pullback.

Investor priorities have also changed, with a greater emphasis on profitability rather than growth at all cost.

“Investors are looking at that saying, ‘That’s not what I want to invest in,’” said PitchBook analyst Kyle Stanford. “They’re saying, ‘I want to invest in a company that has some semblance of a path to profitability.”

Moving forward, it’s clear that startup will need to up their game if they want to receive funding.

According to the National Association of Realtors, via TheRealDeal, institutional investors are buying houses in Texas at more than double the national rate. While 13% of homes are purchased by investors nationally, 28% of Texas homes were. The two areas with the highest concentration were Tarrant and Rockwall Counties in the Dallas-Fort Worth area, as well as Midland Country in the oil patch region.

Per TheRealDeal, National Association of Realtors’ Nadia Evangelou explained in an interview with the Texas Standard why Texas has such appeal to investors.

“Our study shows that institutional buyers tend to purchase homes in areas that have fast-growing household formation with larger millennial renter and minority populations,” Evangelou said. “But then we also see that although both rents and prices for homes for sale are rising quickly, housing is still affordable in the areas where institutional buyers purchase homes. Texas offers all these to investors.”

Texas is seeing major growth, thanks in no small part to an exodus out of Silicon Valley, with some of the biggest names in tech relocating to Texas.

Revolut is a UK-based fintech company in the banking industry. The company recently had an independent audit, with the auditor warning that it could not verify three-quarters of the company’s 2021 revenue, according to the Evening Standard.

“I am grateful for the opportunity to serve as group CFO at Revolut and remain confident in the firm’s future successes,” Salovaara said in a statement.

Salovaara’s departure does little to answer questions raised during the company’s audit when auditor BDO said some of Revolut’s account information could be “materially misstated.” The auditor went on to note that it could not verify £477 million in revenue, saying that Revolut’s “IT systems weren’t designed in such a way that would allow for IT or business process controls to be effectively tested throughout the year.”

Salovaara previously told Reuters the issue was a non-factor, despite the company filing its accounts two months after the deadline due to the ‘accounting systems needing replacement.’

“There is not any doubt over the completeness of the balance sheet, which, in turn, logically means that total revenue is also correct,” he said at the time.

Revolut has likewise tried to reassure everyone that there is no issue, saying its revenue “was not in question” and concerns raised by the audit were “remedied in 2021.”

As the Evening Standard points out, Revolut is trying to get a UK banking license. It remains to be seen how the results of the audit will impact the process.

This innovation has fueled digital transformation, making it easier for businesses to thrive in an increasingly competitive market. However, recent reports suggest that AWS’s growth has been slowing down.

It is natural to wonder if this is cause for concern, as the impact on Amazon Cloud Computing might affect your business too. Below, we’ll explore the reasons behind this slowdown, how it compares to competitors like Microsoft Azure, and assess whether it is too early to raise the alarm.

The Slowdown in Amazon’s Cloud Computing Growth

Entrepreneurs and investors are witnessing a deceleration in Amazon’s cloud computing expansion, raising concerns for all parties involved. In the first quarter of 2023, AWS produced approximately $21 billion in revenue, reflecting a 16% year-over-year (YoY) increase.

At first glance, this figure may seem impressive — however, it pales compared to the prior year’s 36% growth rate. This marks the most sluggish expansion for AWS since the company began reporting its cloud business results in 2014.

AWS represents Amazon’s most crucial business segment, contributing over 15% to its net sales and accounting for its entire operating income. Even though 72% of companies view the cloud more securely than their in-house counterparts — prevailing macroeconomic conditions have led to a widespread contraction in cloud growth. This is because companies have reduced spending in light of the current economic landscape.

As such, AWS’s growth remains significant, though it begs the question of whether this deceleration is a temporary hiccup or the start of a worrisome trend for Amazon’s cloud computing supremacy.

Assessing the Slowdown

As the recent decline in AWS growth raises concerns, it is essential to understand the underlying factors and the broader context. The slowdown in AWS growth has prompted questions about its continued dominance in the cloud computing market, given its long-standing reputation as Amazon’s primary source of profit.

Before drawing conclusions, it is important to consider the bigger picture. The current economic climate has led to a general slowdown in cloud growth, impacting not only AWS but also competitors like Microsoft Azure and Google Cloud. During the same period, Azure’s growth rate dropped to 27% YoY, while Google Cloud’s decreased to 28% YoY.

Synergy Research Group reports that global cloud infrastructure spending still experienced a 20% YoY growth in the first quarter. Although Amazon’s market share slightly declined from 33% to 32%, the company remains the dominant player in the cloud computing sector. Microsoft Azure holds 23%, followed by Google Cloud at 10%.

This data suggests that the slowed growth of AWS may not necessarily indicate a failure in the cloud computing competition. Factors such as heightened economic sensitivity among Amazon’s clientele and temporary challenges could be responsible for the downturn. However, monitoring AWS’s market position in future quarters and evaluating its performance in the ever-changing cloud computing industry remains essential.

Possible Factors for Market Share Slip

Beyond customer sensitivity to economic fluctuations, other factors may be contributing to AWS’s market share slip. One key element is the aggressive expansion and improvement of services by competitors like Microsoft Azure and Google Cloud, which may attract customers seeking cutting-edge innovations.

Another aspect to consider is the increasing trend of businesses adopting multi-cloud strategies, which allows them to distribute their cloud infrastructure among multiple providers, thus reducing their reliance on AWS. Furthermore, concerns over vendor lock-in may also drive customers to explore alternative cloud service providers to maintain flexibility and control. 

Finally, Amazon’s reputation for market dominance might lead some clients to diversify their cloud dependencies and support a more competitive landscape by choosing other cloud providers. These factors could potentially influence AWS’s market share in the cloud computing sector.

The Future of Amazon Cloud Computing and the Market

Looking ahead, the future of Amazon Cloud Computing and the market appears to have immense potential. Despite the recent slowdown, AWS will likely remain a dominant force in the sector — given its robust infrastructure, extensive service offerings and strong customer base. 

Amazon’s ongoing investment in innovation and new technologies, such as machine learning and edge computing, will further AWS’s prospects and enable it to stay ahead. However, competition will continue to intensify as major players like Azure and Google Cloud strive to capture a larger market share. This rivalry will benefit customers, as cloud providers will feel compelled to differentiate themselves through superior service offerings, lower pricing and enhanced customer support.

The increasing adoption of hybrid and multi-cloud strategies will also shape the future of the cloud computing market. Companies will look for flexible solutions that enable them to leverage the best features from multiple cloud providers. That way, they create a more interconnected and collaborative ecosystem.

Furthermore, emerging technologies such as 5G, the Internet of Things (IoT) and advancements in artificial intelligence (AI) will significantly impact the cloud computing market. These developments will drive demand for agile and scalable cloud infrastructure to support the growing needs of modern applications and data processing.

Amazon Cloud Computing is Staying in Power

Despite the recent slowdown in AWS growth, Amazon remains a formidable player in the cloud computing market. The economic climate and intensified rival competition have decreased growth rates.

However, Amazon’s ongoing investment in technological innovation, and its ability to adapt, position the company to maintain its market dominance. Business owners should stay informed about the changing landscape, but for now, it is premature to conclude that Amazon is losing the cloud computing game. 

With a slowdown in economic activity over the last several months, from advertisers cutting their spending dollars, to investors and venture capitalists pausing their elaborate funding, big tech is now reckoning with widespread workforce reductions. 

January 2023 was perhaps the most brutal month of the year, seeing around 84,714 tech employees being laid off. So far this year, an average of close to 50,000 tech workers have already had their jobs on the chopping block. 

While big tech layoffs continue to dominate headlines, research by the think tank and business membership organization, The Conference Board projects that layoffs will only become increasingly worse in the coming months, slowly spilling into other industries outside of technology. 

According to their projections, and the current widespread macroeconomic decline, employees in information services, transportation, warehousing, and construction are currently at high risk of losing their jobs this year. 

Several factors, such as exposure to monetary policy, education levels, labor shortages, and job function, among others, are used to calculate the possibility of employees losing their jobs in these sectors. 

The looming layoffs have left many employees scrambling to secure new employment, as the once-red-hot labor market begins to unravel. 

What’s more concerning, is that once you start widening your peripheral view, you start noticing that layoffs are a much bigger problem than what many have thought it would be. 

Overall, more than 3.3 million workers have already lost their jobs this year. These numbers reveal a striking image of how bad economic conditions have gotten since last year.

It’s however not just big tech companies, small startups, and mobile application companies that have been making employee cutbacks. 

The professional and business services, which provide services such as facilities management, security services, consulting, research and technical services, and accounting among other things have recorded more than 900,000 layoffs over January and February this year, marking a 13% increase from the same period last year. 

Firms in this sector of the economy have been battling to keep heads above water, as aggressive monetary tightening increased the cost of borrowing, and consumers dive deeper into debt as they try to keep up with the soaring cost of living. 

In other sectors of the economy, trade, transportation, and utilities experienced the second-highest number of layoffs this year, with over 615,000 employees being booted. 

Further down the list, firms and businesses in construction, leisure, hospitality, and retail trade have also slowly been cutting back their head count as consumers are starting to spend less on these services due to higher costs. 

Yet, despite these staggering figures, the total number of employees in these categories has not decreased over time, as the number of those that have been let go against the total number of new hires over recent months has remained relatively similar. 

Then there are non-essential jobs in services such as arts, entertainment, and recreation that currently also have a high risk of layoff due to their direct exposure to sensitive economic conditions. 

Estimates predict that employees in these fields have a risk layoff rate of 2.89%, with a possible 69,400 jobs lost per month. 

Other services in the information sector, which encompasses jobs in motion picture production, music recording, broadcasting, data processing, and telecommunications, among others have also been hit with layoffs this year so far. 

Over January and February 2023, roughly 3.4% of workers in this sector were involuntarily discharged. The unemployment rate for the information sector has risen by 1.2% since last year already. 

Elsewhere in the job market, cash-strapped electric vehicle (EV) startups have also said farewell to thousands of employees since the start of the year. Layoffs are seen across different organizational levels, and include manufacturers of car battery brands, electrical components, and legacy automakers.

The UK-based EV startup, Arrival, said back in January that it will cut nearly 50% of its workforce, winding down its UK operations to refocus on the U.S. market. 

High-end luxury EV company, Lucid Group, announced at the end of March that they’re planning to cut 18% of its workforce, affecting roughly 1,300 workers at all organizational levels. 

Even Ford Motors have cut close to 4,000 jobs in Europe, the most being in Germany and the UK, as the legacy automaker looks to refocus its efforts on EV transition and electrifying its production line up as demand for EVs continue to gain momentum. 

The list doesn’t end there, as Faraday Future, Nikola and even Rivian have all reduced their headcount in recent months due to ongoing price wars with EV industry giant, Tesla, and broader macroeconomic problems reverberating from the tech sector. 

Across the board, it seems as if companies are tightening their belts even further this year to make up for the frantic hiring spree they enjoyed during the last several years, and following the red-hot post-pandemic labor market. 

While companies are letting go of thousands, if not tens of thousands of employees nearly every week, employment figures in the United States are currently at the best they have been in more than five decades following the most recent employment situation data report by the Bureau of Labor Statistics (BLS). 

Recent figures showed that unemployment figures have remained relatively low, compared to the high number of layoffs. 

Overall, employers added more than 236,000 new non-farm payroll jobs in March 2023, keeping the unemployment rate at 3.5%. 

Both the unemployment rate and the number of unemployed people, roughly 5.8 million, have changed little since the start of 2022 and have remained near the lower end for much of 2023 so far. 

Furthermore, the labor force participation rate has continued trending upward following the most recent data from March. The participation rate remains steady at 62.6 percent, still somewhat below pre-pandemic levels at 63.3 percent recorded in February 2020. 

All the while thousands of employees remain worried that their job might be next on the chopping block, several indications reveal that HR officers and experts remain relatively optimistic about hiring in the coming months. 

According to The Conference Board CHRO Confidence Index, some three in four chief HR managers are expected to increase their hiring in the next six months. 

However, on the other hand, many remain worried about the high possibility of employees leaving or quitting, despite economic uncertainty and a looming recession. 

Roughly one in five chief HR officers are concerned that employees may quit over the next coming months, either completely leaving the workforce or looking to find different employment opportunities. 

In a time where layoffs are red-hot, and some companies are now urging their employees to return to the office, following nearly three years of remote working, 45% of HR leaders have claimed that employee engagement has steadily increased in the last six months, while 14% said that engagement has gone down. 

Following months of pandemic-related workplace trends, from The Great Resignation, Quiet and Rage Quitting to Rage Applying, it now seems as if employees have become complacent with economic hardships, and are willing to stick out longer until the worst of the storm has passed.

What about jobs in sectors that are more resilient against a mild recession?

For the most part, it seems as if positions in public and governmental services, private education, health care, medicine, accommodation, and food services look to be on the safer side of things at the moment

Companies in these sectors are considered to be more resilient against possible job cuts, even if a mild recession does happen. 

Unlike their peers in big tech and information services, these companies didn’t indulge in over-hiring sprees over the last several years, giving employees somewhat more job security considering the tumultuous economic downturn. 

In some cases, it even seems as if some businesses in the food and service industry are still looking to recover the jobs that they lost during the pandemic back in 2020. 

The latest estimates by the U.S. Travel Association indicate that there are currently more than two million open roles in the leisure and hospitality industry. This comes even after the sector added more than 105,000 new jobs in February, accounting for over a third of the 311,000 all-new jobs added during the period. 

And while layoffs continue, those that have been booted in recent months have already taken up new roles in different sectors. Many have opted for different opportunities in new fields including cybersecurity and healthcare, among other industries. 

It’s however not that easy for many foreign-born workers that are here on temporary work visas. Now that their once beloved tech employer has let them go, many of them are faced with navigating the already complex, and seemingly outdated U.S. immigration system. 

Instead of staying longer, and having to look for new employment to sponsor their visas, foreign tech talent are heading abroad to places like Australia, Canada, China, and the U.K. For others, however, the situation has led them to self-deport, as the job market becomes increasingly stringent, and new employers aren’t willing to pay for visa sponsorships. 

The lack of job security and worsening economic conditions have seen widespread uncertainty in the labor market. And while it was upheld to one corner of the economy for a while, it’s  starting to flow over into other sectors, quickly becoming an epidemic that’s now coming for thousands of jobs.