In an exclusive interview with CanadianSME Small Business Magazine, Ashalee Mohamed, Head of Canada for Sales & Go-To-Market at Xero, dives deep into the emotional challenges faced by small business owners. Ashalee discusses Xero’s Emotional Tax Return campaign, which aims to shed light on the hidden costs of entrepreneurship—the mental and emotional toll that often goes unrecognized.
Interview By SK Uddin
Ashalee Mohamed is a senior business leader with over 18 years of experience driving growth and leading high-performance teams across a variety of industries. As the Head of Canada, Sales & Go-To-Market (GTM) at Xero, Ashalee leads the Canadian GTM team, focusing on accelerating revenue growth and delivering operational excellence. Throughout her career, Ashalee has demonstrated a unique ability to build cultures of high performance, deliver results, and navigate diverse sectors.
Her experience spans PR communications, media, travel and tourism, insurance, legal services, private investigations, and investor relations. Ashalee’s previous leadership roles at Cision, Adventure Canada, and Investigative Research Group showcased her talent for driving transformative business strategies and fostering growth at scale. Beyond her professional expertise, Ashalee is an advocate for small businesses, recognizing their essential role in shaping the Canadian economy. She is passionate about helping these businesses succeed by providing the tools, resources, and guidance they need to grow and innovate.
Xero’s Emotional Tax Return campaign looks beyond the balance sheet to measure how business ownership feels. For readers who haven’t seen the report yet, how do you define “emotional tax,” and what were the most striking findings that stood out to you?
The cost of running a small business is often measured in dollars, but our research reveals a different price altogether. The “Emotional Tax” is the cumulative stress and mental load required to keep a business afloat in an operating environment that is harder to manage every year. It’s the weight of financial uncertainty, the sleepless nights, the strain on personal relationships. These are the invisible costs that don’t show up on a balance sheet but profoundly impact how small business owners live and work.
Several findings really stood out to me. First, the sheer pervasiveness of this burden: 49% of Canadian small business owners say they can’t completely switch off from work, and 78% say this year has been more stressful than previous years. Second, the physical toll is staggering. Over half of owners report getting less sleep since starting their business, with nearly a quarter losing five or more hours a night. Third, stress has become so severe that nearly two in five business owners have considered giving up their business entirely because of how stressed they are about its financial success. That’s not just a well-being issue; it’s a signal that we need to do more to support the backbone of our economy.
Running a small business in Canada today means juggling cash flow, staffing, customers, and constant change. From the data, what factors are having the greatest impact on small business stress right now, and how is that stress showing up in owners’ day-to-day lives?
The operating environment is having a massive impact on Canadian small business owners’ stress. Our research found that 78% of small businesses report that economic pressures, including rising costs (50%), unpredictable demand (30%), tariffs (30%), and political uncertainty (18%), have made this year more stressful to navigate than previous years. 90% of owners are concerned about the upcoming fiscal year, with 30% very or extremely concerned. These are forces largely outside the control of small business owners, yet they bear the full emotional weight of navigating them.
Financial management is also a significant pressure point. More than three-quarters of Canadian small business owners find managing their finances stressful, and they’re spending an average of 27 hours per month on financial admin. The fear of making a mistake or the stress of gathering paperwork causes many owners to avoid financial management altogether, which only compounds the problem.
In terms of how this shows up in daily life, half of Canadian small business owners said they can’t disconnect from work in their personal lives. Over half report getting less sleep since starting their business. Owners are giving up hobbies and self-care, like exercise (32%), travel (30%), and quality time with their partners (26%). Many are missing important life events like family dinners, birthday parties, and even weddings, and many have hidden their business-related stress from a partner or family member, with a large number reporting being more short-tempered with others when stressed. The Emotional Tax doesn’t stay at the office, it follows owners home.
When stress becomes chronic, it doesn’t just affect the owner—it affects decision-making, employee morale, and long-term resilience. Based on the research, what are some of the most concerning consequences you see for Canadian small business performance and health?
Stress isn’t just affecting owners’ wellbeing, it’s directly impacting business performance and survival. Our research shows that Canadian small business owners spend an average of nine hours per week feeling stressed, concerned, or worried about their business, and stress impacts their ability to work for an average of five hours per week. That translates to approximately 31 working days of lost productivity per year. That’s more than a full month stolen from Canadian small businesses annually.
When you’re stressed, you’re not at your best. Stress affects the very skills owners need to succeed, creating a vicious cycle. More than three-quarters of small business owners say stress has negatively impacted their work, resulting in slower decision-making, missed opportunities, reduced creativity, loss of confidence, slower growth, and avoidable mistakes, including financial errors.
What concerns me most is the compounding effect. Stress leads to avoidance behaviours like procrastinating on financial management or delaying tax filings until the last minute. More than half of small business owners have been surprised by a tax outcome, and 28% avoid dealing with taxes altogether. This creates a cycle where unmanaged stress leads to poorer financial decisions, which in turn creates more stress. When two in five Canadian small business owners have considered giving up their business because of stress, it’s clear this isn’t just a personal challenge; it’s a threat to the resilience of our small business economy.
Xero’s platform is built to simplify financial tasks and provide real-time visibility. In practical terms, how can better systems, automation, and collaboration with advisors reduce the emotional tax that comes from not knowing “where the business really stands”?
So much of the Emotional Tax stems from uncertainty. When you don’t have clear visibility into your financial position, every decision carries extra mental weight. Our research found that a third of owners are stressed by the need to chase paperwork, and 28% fear making mistakes, both of which are solvable problems with the right systems in place.
At Xero, we address stress at multiple levels. On the time front, our automation handles repetitive tasks like bank reconciliation, invoice reminders, and expense categorization, giving owners back hours every month. On visibility, real-time dashboards show financial position at any moment, reducing the uncertainty and surprise that drive so much anxiety. On accuracy, automated reconciliation and checks reduce the fear of mistakes. When it comes to tax readiness, year-round organization means no last-minute paperwork scramble. That’s critical when 36% of owners find the end-of-fiscal-year significantly more stressful than the rest of the year.
Technology is only one part of the equation, however. Our research also shows that only 10% of Canadian small business owners seek advice from an accountant or advisor when they feel financial stress. That’s a significant gap. Professional advice helps owners reclaim the mental space required to navigate economic uncertainties with confidence. Xero enables real-time collaboration between owners and their advisors, so financial management becomes an ongoing partnership rather than a once-a-year scramble. The goal isn’t just to manage numbers; it’s to reduce the emotional burden so owners can focus on what they love about their business.
For Canadian small business owners who are feeling particularly stretched this year, what advice would you share—both in terms of mindset and practical steps—to manage their emotional load while still moving their business forward?
The economy is tough right now, and the Canadian small business ecosystem has been through a lot in recent years. First, I want small business owners to know that what they’re feeling is valid and shared. You’re not alone in this. Our research makes it clear that the Emotional Tax is widespread, and it’s a reflection of how challenging the current operating environment is, not a personal failing.
In terms of mindset, I’d encourage owners to focus on what’s within their control. Economic factors like rising costs and geopolitical uncertainty are largely outside of any one business owner’s influence, but how you manage your finances, take care of your health, and build your support network. Those are areas where you can take meaningful action. Getting enough sleep, prioritizing your mental and physical health, and making time for the relationships and activities that recharge you aren’t luxuries. They’re essential to sustaining your business for the long term.
On the practical side, I’d offer three things. First, don’t go it alone. Reach out to peers, family, friends, and professional advisors when you’re feeling the pressure. Only 10% of owners seek professional financial advice when stressed, but it’s one of the most effective ways to reduce the mental load. Second, lean into digital tools that can take the administrative burden off your plate. Automating tasks like bank reconciliation, invoicing, and expense tracking gives you back time and reduces the anxiety that comes with manual processes. And third, prioritize year-round financial management over last-minute scrambling. Maintaining organized digital records and having clear visibility into your financial position throughout the year means tax season becomes predictable instead of panic-inducing.
Small businesses are the backbone of the Canadian economy. They account for nearly half of our private sector GDP and employ 5.7 million Canadians. Supporting our small business owners’ well-being isn’t just good for them; it’s essential for the health of our economy. We owe it to them to help lighten the load wherever we can.
Disclaimer:
The views and opinions expressed in this interview are those of the interviewee and do not necessarily reflect the official policy or position of CanadianSME Small Business Magazine. Our platform is dedicated to fostering dialogue and sharing insights that inspire and empower small and medium-sized businesses across Canada.
