Many UK small businesses are losing out by having to spend significant time dealing with routine admin tasks, claims a new survey.
Research by Tide revealed 63 per cent of those running new businesses have to spend at least one day per month on administrative financial tasks, such as dealing with taxes, payroll and expense claims.
The survey of nearly 150 sole traders and small enterprise owners in the UK revealed they often felt their time could be better spent on developing business rather than dealing with admin tasks.
Companies set up less than a year ago were found to be struggling with tax and accounting issues, while longer established firms faced challenges due to payroll and keeping track of expenses.
George Bevis, chief executive officer of Tide, called on the UK’s smaller employers to be given more support to help their focus their efforts in the correct way and technology could improve efficiency.
“In the early days of starting a new business, entrepreneurs and sole traders all too easily find themselves tied up in financial red tape,” said Mr Bevis.
He added: “While the tasks they have to complete aren’t necessarily complicated, they are time-consuming and unfamiliar, and there can be significant consequences if done incorrectly.”