Small businesses waste 120 days a year on admin
Small businesses spend an average of 120 working days each year on repetitive administration tasks, with accounting tasks costing firms the most.
Sage, a market leader in cloud-based accountancy software, found that around 5% of a small businesses man hours are taken up by administrative tasks globally.
Compared with other countries in the study, Britain performs slightly worse with around 5.6% of staff time spent on back office tasks like invoicing and recruitment.
Sage argues that productivity is suffering because small businesses are spending too much time on tasks that don’t add value to the business.
Businesses could minimise these wasted man hours by putting systems in place to automate or streamline these back office functions.
By eliminating the time spent on back office functions, British firms could generate an extra £33.9bn for Britain’s GDP, according to the study.
For Sage, failing to use technology like cloud-based accounting software hurts British productivity.
It is one of the reasons that British productivity lags so far behind many other developed countries. This summer, it was revealed that British workers were 27% less productive than their German counterparts.
To complete their ‘Sweating the Small Stuff’ report, Sage commissioned Plum Consulting to survey 3,000 companies across 11 countries to consider whether technology can be used to reduce the burden of administration.
The biggest administrative task for small businesses in the UK is accounting, amounting to more than 20% of the wasted time.
Stephen Kelly CEO of Sage said in the report foreword: “We consistently hear from our customers the world over just how burdensome bureaucracy is for them, and how much it distracts them from the real, valuable work of growing their businesses.
“Because let’s face it – no one started their own business because they dreamed of creating an expense report or chasing a late payment. This small stuff turns into a sizeable, worrying burden.”
Miles Grady, Director of Cloud Accountant said: “Administrative tasks like accounting take up more staff time than most directors think, or want to acknowledge. New technology presents a great opportunity for businesses to save on time and act more productively by automating or streamlining some of the most basic tasks.
“Cloud based accounting software packages like Sage, FreeAgent and Xero can help freelancers, small businesses and SMEs save dozens of hours each week on things like invoicing, chasing payments and filing expenses.”
Cloud Accountant offers a range of supported accountancy software packages to help your business prosper. Get in touch for more information. Call: 0808 281 0303.