According to a new survey, Britain’s small and medium-sized enterprises (SMEs) are collectively losing out on as much as £3.7 billion in revenues due to poor internal systems such as invoicing.
Exact, a business software solutions company that commissioned the survey, found that 20% of the 450 SMEs surveyed had forgotten to invoice for goods or services at least once. Of these 12% were for jobs and services worth between £5,000 and £10,000. A further 6% admitted that they had failed to invoice for jobs and services worth more than £10,000.
The survey was carried out to help gain a better understanding of the working relationships and processes in place between accountants and their SME clients.
The survey showed 29% of respondents cited worries over finances such as cash-flow issues, debtors and business planning as the second most common cause of stress behind fighting for new business (31%), with pressures related to winning new business (28%) and worries about workload (21%) following behind.
Additionally, a quarter of business owners and leaders surveyed admitted they didn’t feel fully in control of their accounts and business finances. This appears to be having a wider impact on the running of the business and those further down the supply chain: nearly half (45%) of SMEs have had to defer payments due to cash flow problems including failing to pay their staff on time (13%). A third has failed to pay suppliers on time; 16% have failed to pay loan or overdraft repayments on time; and 15% have filed tax or VAT returns late.
In our opinion, this report clearly highlights the need for improved processes and working practices between SMEs and their accountants. At Bradleys, we recognize the pressures of the entrepreneurial world and understand the impact a healthy cash-flow has on the running of your business. That’s why we customise our small business accounting services to guide you so that cashflow isn’t a major concern and funds are available on time to pay suppliers and invest in the business.