Did you remember to invoice for that job last week? If you’re not sure, you’re not alone – business software developer Exact has found that as many as one in five firms have forgotten to invoice for at least one job in the past.
That might not sound like such a big deal, but 12% of those surveyed have forgotten to invoice for a job worth £5,000-£10,000, and a startling 6% have simply forgotten to charge on a job worth over £10,000.
This lapse in credit control is just one of the internal failures that have ended up costing UK SMEs an estimated £3.7 billion in the past 12 months.
One in four survey respondents admitted that they feel a lack of control over their finances, and 23% are worried about things like cash flow, business planning and debtors; yet ironically, it is the chase for new business that occupies the minds of 31% of those queried, perhaps leaving little time to focus on the small details.
Hartmut Wagner, managing director of cloud solutions at Exact, says: “We don’t want to blow this issue out of proportion, but these findings do highlight that many SMEs who are eager to grow are not doing themselves any favours, particularly with so many of them expressing concern over their cash flow.”
The research found many SMEs relying on their accountants for broad-reaching business guidance, yet in 61% of cases direct communication between the accountant and the firm was limited to once a month or less.