A new survey has revealed that small and medium sized businesses are losing billions of pounds every year simply by forgetting to invoice their customers.
The survey, by finance software provider Exact, questioned 450 businesses on their cashflow and invoicing practices. One-fifth (20%) admitted that their had forgotten to invoice for goods or services at least once. With 18% of the respondents’ invoices worth more than £5,000, the overall loss to businesses is estimated at £3.7 billion each year.
The survey also found that cashflow is a key concern for businesses, second only to the pressure of competing for new business. A quarter of business owners in the study said they don’t feel in control of their finances, and 45% said they have had to defer some sort of payment due to cash flow issues.
Harmut Wagner, managing director of Exact, 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 cash flow.”