Small firms spend 2.5 million days every month managing finances
Business owners say dealing with finances makes them feel stressed and often rely on help from family, friends or an accountant
The UK’s 5.3 million micro businesses spend a collective2.5 million working days every month managing their finances, according to new research from KashFlow.
This equates to 19 million hours, with 32% of those surveyed admitting it makes them feel stressed and 50% saying they lack confidence in financial matters.
However, not everyone bemoaned having to maintain accounts: 34% claimed to feel “in control” of their finances and 42% rated themselves as “really good” and felt “totally confident in their abilities”.
Amongst those who reported to lack confidence and skill, 43% said they felt frustrated with themselves and 54% admitted to being constantly worried they’d made a mistake, while 25% relied heavily on other people such as friends, family or an accountant.
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Micro businesses and sole traders were also asked what they liked most and least about running their own business. 48% stated that being their own boss and “not having to answer to anyone” was the biggest benefit, while 20% said not being able to switch off was the worst aspect. 15% cited managing finances as the worst thing about being self-employed.
Oliver Shaw, CEO of KashFlow, said: “It’s clear that even those who feel confident managing their accounts still find it challenging at times, and that the overwhelming majority of sole traders and small business owners would like to spend less time on it.
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“Although half a day a month sounds reasonable for such a task, almost a third of those surveyed are spending longer than that, which is time they could be spending on doing what they love or, exploring growth opportunities.”