An independent survey has found that small and medium-sized enterprises (SMEs) could be collectively out of pocket by as much as £3.7 billion due to poor internal systems such as invoicing.
The report, carried out on behalf of business and software provider, Exact, found that 20 per cent of SMEs admit to having forgotten to invoice for goods or services at least once. Among those, around 12 per cent confessed to not invoicing for a job worth between £5,000 and £10,000.
A further six per cent admitted to having forgotten to invoice for a project worth more than £10,000 to their business.
The survey was carried out nationwide to help gain a wider understanding of the working relationships and processes in place between small businesses and their accountants.
Hartmut Wagner, managing director of cloud solutions at Exact, said: "We don’t want to blow this issue out of proportion, but these findings do highlight that many SMEs who are eager to grow are not doing themselves any favours, particularly with so many of them expressing concern over their cash flow."
Further data from the survey shows the biggest cause of stress for SMEs is fighting for new business (31 per cent), closely followed by worries over finances (23 per cent), such as cash flow issues, debtors and business planning.
Additionally, a quarter of business owners and leaders surveyed admitted they don’t feel fully in control of their accounts and business finances.
The data certainly suggests there is a genuine need for improved working practices and processes in place between SMEs and their accountants.
At TaxAssist Accountants we appreciate just how busy SMEs are in making sure businesses are as successful as they can be. That’s why we offer a tailored, personal accountancy service to start-ups, sole traders, partnerships, limited companies and more across the country.
Our bespoke online accounts software gives our clients the financial information they need to know about their business instantly, as well as creating new invoices which can be printed or e-mailed to customers at the touch of a button.
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