Majority of Small Businesses Struggle to Monitor Basic Finances
Report finds a fifth of UK business owners use just a pen and paper for business admin while many don’t have accurate revenue records
The majority of UK small and medium businesses will go through 2016 without accurate revenue records or sales information a new report by Worldpay has found.
The report suggests that small business owners are struggling to plan for the year ahead because they are unable to monitor even the most basic numbers including revenue, profit and top-selling items – with one in five using just a pen and paper for business admin.
Nearly half (48%) of small business owners cannot identify their top 10 customers or their ordering habits while 40% cannot provide up-to-date monitoring or forecast of revenue and profit.
A further 57% unable to pinpoint their busiest trading day of the month while 62% of the small businesses surveyed were unaware of their top three selling items.
Worldpay UK managing director, Dave Hobday, said that educating small business owners on digital technologies is key to helping them save time and plan with confidence:
‘’We already know that small business owners spend twice the amount of time on finance and admin than they do on selling. This unhealthy balance means many business owners feel compelled to cut back on paperwork, even when it leaves them with nothing but a blank sheet of paper to work from when it comes to forecasting.’’
Want to use technology to drive success and limit costs for your small business? Read our guide here for cost-effective IT.