UK businesses forget to invoice clients for work worth £3.7billion
Small and medium-sized enterprises (SME) in the UK are failing to invoice their clients for up to £3.7billion a year, according to recent research.
Even though businesses are battling through a difficult economic climate, 20% admit they have forgotten to invoice for work on at least one occasion.
Of the 450 SMEs surveyed, 6% admitted they had forgotten to send an invoice for more than £10,000, and 12% forgot for work between £5,000 and £10,000.
The results suggest that the 4.8 million SMEs in the UK are missing out on a combined £3.7billion for work they have already done.
Hartmut Wagner, managing director of Cloud Solutions Exact which carried out the survey, said: “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 cashflow.”
Nearly a quarter of businesses expressed concerns over their finances, on issues such as cashflow and debt collection. A lack of organisation and time management has left 25% of business owners admitting they do not feel in full control of their accounts.
The survey found that these administrative errors are leading to further problems, with 45% of businesses having to defer payments due to cash flow problems, and 12% admitting they have been unable to pay their staff on time in the past.