Toronto, Canada, March 19, 2025 (Globe Newswire) – Fresh Bookthe leader in cloud-based accounting software for small and medium-sized businesses and accountants released a detailed report in 2025 on how small and medium-sized businesses own their taxes. This report reveals trends among American small business owners about what to do about taxation, fear and procrastination.
“At FreshBooks, we understand that the tax season can be a source of stress for many small business owners. SMEs Tax Trends for 2025: Procrastinator or Planner’s report highlights confidence in tax filings.” “The data reveals a trend that is both concerning. Many small businesses, the backbone of our economy, essentially “puts it in its wings” when it comes to tax filings. This can lead to costly penalties and unnecessary financial risks. That’s why having an accounting solution like Freshbook is so important – we keep the difficult part of running our business. ”
Key takeout
Trust Gap: Only 26% of small business owners and freelancers feel totally confident in the tax. How to prepare for tax: Small business owners and freelancers primarily manage their taxes via software (35%) or accountants (33%). The biggest tax-related headaches include organizing receipts (35%) (33%), understanding (33%), and learning 78% claiming to start preparing taxes early, with 51% of Gen Z self-employed people waiting until the last moment. Tax Compliance: Tax compliance is primarily motivated by fear, with 46% worried about penalties and 37% worried about potential audits.
Please read Complete report.
Methodology:
FreshBooks designed and conducted an online survey of approximately 1,300 self-employed people, freelancers and small business owners in the United States. Participants were sourced through an online panel representing diverse SMEs of different industries, revenue levels and employment sizes. This study examined tax preparation habits, challenges and attitudes across demographic segments.
The margin of error in the survey is +/- 2.7% with 95% confidence.
About Freshbook
Fresh Book It is a leading cloud-based SaaS accounting software platform built for small business owners, consistently ranks #1 for ease of use. With an emphasis on keeping things as simple and stress-free as possible, FreshBook makes the difficult parts of running your business easier. Freshbook allows small businesses to get paid faster and reduce the time they spend on administrative tasks and paperwork. So you can focus on business growth.
