Over one in four small company owners have admitted they should have sought outbetter bookkeeping support when starting out, as new findings reveal the early business investments founders most regret overlooking.
In a survey of over 500 small and micro business owners, by accounting software provider Xero and insurer Aviva, almost two-thirds of respondents viewed bookkeeping as the least rewarding aspect of running their company.
Despite a majority being worried about keeping their accounts in order, small business owners spent on average just three hours and 40 minutes each week managing their finances.
Overall, over a quarter wished they had invested better in account management from day one. However, several other business investments were ranked as more important by respondents.
Technology dominated the results, with a third admitting they should have invested in a website from the start. Further spending on general IT followed, with 29 per cent regretting overlooking this.
Top five business investments founders regret not making
Created a website
Invested in better IT
Bought accountancy software
Employed some help
Sought financial advice
Commenting on the findings, Darren Upson, director of small business at Xero said mistakes were inevitable as a first-time entrepreneur, with no set handbook for starting a company.
He added: The research from those business owners who have been through it has uncovered clear advice – invest in the technology that can help simplify your business admin and allow you to spend more time and energy growing your business.
Aviva’s SME director, Andy Beswick, said entrepreneurs could be forgiven for overlooking some key administrative tricks due to large amount of priorities that need balancing at the start. “We all look back on some of the decisions we have made and with hindsight, wish we had done things differently”, he said.
Listening to what established business owners have to say is a great way of avoiding similar mistakes.
Xero and Aviva left behind three essential dos and don’ts of starting a small business
The dos and don’ts of starting a small business
Make sure your heart is in it and that you have the support of the people you care about, as the journey is going to be tough.
Sort out processes and business administration sooner rather than later. Having outstanding and time-consuming administration tasks hanging over you can be distracting. Accounting software that enables you to keep on top of your numbers can help here.
Don’t leave your assets and people unprotected – you have a lot at stake. Insurance might feel like a complex decision, but once it’s done, it’s done.