Tax & admin · 19 May 2017

Half of micro business owners afraid of tackling finance administration

finance_administration
Daily accounting tasks could be costing UK micro business owners 2.5 million days of productivity every month
Britain’s community of sole traders and freelancers have delivered a split verdict on their ability to handle finance administration, as new survey findings revealed just how long micro business owners spend dealing with accounts.

The study, by finance management software provider KashFlow, asked founders running firms of nine staff or fewer what they like most and least about running a small company.

For 15 per cent of sole traders and freelance workers, finance administration was the least enjoyable part of being a business owner.

Half of respondents admitted they lacked confidence in tackling finance admin, while a third cited their daily bookkeepingresponsibilities as ‘stressful.

However, a significant number of Britain’s self-assured micro business owners were more than happy to take on their own finance admin.

A third believed they were in control? of their accounts, while 42 per cent said they were totally confident? in their own abilities.

Commenting on the findings, Oliver Shaw, CEO of KashFlow, said despite the varying responses in accounting skills, owners agreed time could be better spent elsewhere.

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, Shaw said in a statement.

For the UK’s army of 5.3 million micro business owners, tough finance administration could be costing the economy 19 million hours of productivity every month.


 
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ABOUT THE EXPERT

Praseeda Nair is the editorial director of Business Advice, and its sister publication for growing businesses, Real Business. She's an impassioned advocate for women in leadership, and likes to profile business owners, advisors and experts in the field of entrepreneurship and management.

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