Small Businesses Losing Money Due to Inefficient Petty Cash Systems
The average UK small enterprise loses £355 a year due to mishandled petty cash budgets
On average, UK small businesses lose £355 a year due to insufficient petty cash systems, with 43% admitting that the biggest barrier to effectively monitoring petty cashflow was misplaced receipts.
Worryingly the research, conducted by Argos for Business, found that 15% of employees did not know how the petty cash system worked at their small business employer, with 37% believing it was the responsibility of the finance department and 15% blaming line managers for misplaced cash.
Complicated processes was the second biggest obstacle to the effective management of petty cash at 12%, and healthcare and retail were the largest sectors affected by the issue, with 17% and 12% respectively.
Danny Clenaghan, managing director at Argos for Business, said:
“While petty cash is often considered a small necessity within a business, it’s clear to see from the results that if managed incorrectly it can become a costly problem.
“With over five million businesses registered in the UK, with an average number of 240 employees, it’s easy to see how the management and reconciliation of receipts and change can become a complicated process for everyone involved.”