Accounting the most stressful part of running a small business
UK micro-businesses spend ten weeks of the year working on financial according to research from digital business bank Starling.
In a new report, the app-based challenger bank shines a light on the working practices of 5.6 million of the UK’s smallest firms.
Studying more than 1,000 British micro-businesses, it found that the average company clocks 79 man hours each week, with an average of 17 hours spent solely on financial admin tasks.
That’s a whopping 19% of their total time - or just under 10 weeks each year - spent doing some of the most mundane jobs that small business owners can do.
The research also found that the smallest businesses were disproportionately affected, with sole traders spending almost a third (31%) of their time on financial admin and companies with 1-4 employees spending a quarter of their time on it.
Accounting represents the most time-consuming finance task, with firms spending more than one week each year trying to stay on top of their books.
Around a third (32%) of micro-business owners also named accounting as the most stressful part of running a business.
Jason Bradley, Business Development Manager of said: “Nobody gets into business because they are passionate about the books. But the simple fact is that you won’t stay in business for very long if you don’t stay on top of your accounts.
Software, apps and other technology has made it easier than ever before to manage business finances. Starling is a great example of a company that has totally disrupted what was quite a traditional industry, making business banking easier and more enjoyable.
Cloud-based accountancy software companies like FreeAgent and Xero have done a similar thing. Cloud software takes slow and painful processes and makes them easy to stay on top of, wherever you are.
I can’t say that using FreeAgent will save you ten weeks each year, but if you use it with a specialist accountancy provider like CloudAccountant.co.uk I can promise that it will make your life more worry-free.”
UK micro-businesses account for around 96% of all businesses in the country. They employ almost nine million people and generate nearly a trillion pounds in revenue each year.
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