A survey of small firms in the UK has found that cash flow issues are the number one financial worry for over one quarter of them, with the COVID-19 pandemic having made this worse.
The report, called Business Challenges, spoke to small businesses across a variety of different sectors, with 26% of them stating that they had been forced to chase up overdue payments regularly throughout the pandemic. This, in turn, led to problems maintaining adequate cash flow, making that their single biggest worry when it comes to their finances.
Business Challenges reveals that pensions and insurance firms have the most worries about overdue payments, with 46% stating that they anticipate having to go on chasing these payments during the rest of 2021. This is followed by companies in the voluntary and charitable sector, at 42%.
Many of those small firms that took part in the survey also stated that they were worried about Brexit impacting on their cash flow situations, with 21% of them indicating this.
Bringing in a small business accountant from Goole or anywhere else can help, as they will understand the importance of cash flow to such firms.
Speaking to The Fintech Times, Sandra Rowley from Takepayments Limited said:
“It is concerning that one in four business owners are finding themselves constantly chasing up late payments. It’s not only time consuming for them but it also has a worrying impact on them.”
Rowley added that it could make the difference between these firms surviving the pandemic or not.