Survey reveals lack of financial information
A recent study by Worldpay has revealed that over half of UK small businesses will not be able to produce precise data on sales and costs for their organisations in 2016. The research indicates that, due to poor administration, keeping tabs on the simplest of business transactions including profit, revenue and best sellers will be difficult and thus make creating a yearly strategy nearly impossible.
Pen and Paper are still out there!
Startlingly, a fifth of SMEs still only use a pen and paper when it comes to recording these figures, whilst 48% cannot provide answers to who their chief 10 clients are, or trends in sales for their most popular products or services. Indeed, the findings show that 40% do not have a sales or profit forecast, surely crucial ingredients for making 2016 a success?
David Hobday, Managing Director at Worldpay in the UK, commented as follows: “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”.
You need a Business Plan, Forecast and regular Accounts
All too often, I come across small business owners who neither know what is going on in their organisations, nor are planning ahead by forecasting sales, profit or cash flows, a dangerous combination. A business review plan and forecast, together with regular management accounts can be just the solution to put you back in control of your business, maximize your profits and cash, and reduce your stress levels. If you would like to have a chat about this, or any other challenges you may be facing, please contact me on 07774 548822 or email me at firstname.lastname@example.org.