UK small firm face up to costs of managing company expenses
The UK’s network of small businesses are losing out on more than £8.7 billion every year as a result of managing their financial obligations.
Soldo commissioned YouGov to survey 1,200 businesses and found that the time it takes to manage company expenses and other financial admin is causing firms to lose out.
Employers at UK small firms spend more than four hours every week on dealing with financial outgoings, covering everything from invoicing and accounting, to budgeting, expenses and forecasting.
While the management of everyday cash flow is an essential part of any business operation, being able to free up time for employees to carry out other tasks can bring many benefits.
Productivity especially can receive a boost, which in turn can lead to enhance sales and more creative thinking, helping to bring even more products and services to market.
Soldo CEO Carlo Gualandri says such a move can “make a big difference”, especially among SMEs who struggle with day to day cash flow management – of those questioned, around 15% reported regular issues.
The study also found that cash flow management becomes more of a challenge as a business increases in size, although it was the smaller firms that suggested they were more fearful of administration or alternative financial measures.
It is to be anticipated that greater levels of finance would be passing through larger firms but it is the complexity of the processes involved that can cause issues.
With firms fearing for their futures and looking to combat the threat of insolvency, it becomes important to effectively track and manage outgoings, especially as far as expenses and invoices are concerned.
Technology can significantly enhance the process by streamlining and simplifying what is required in terms of management.
Key staff are then freed up to invest their time in strategic decisions that can drive growth and prosperity for the company.
Should this process not be possible and a firm is fearing for its long-term future, enlisting the support of a corporate insolvency firm is recommend as they should be able to provide advice and possible solutions.
By Phil Smith
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