Small businesses in the UK lose almost an hour a day to one dull task
Key Points
- UK SMEs spend 53 minutes a day on financial admin
- 39% say admin holds their business back from growing
- SME software spending rose 15% in a year, per Monzo data
- 55% use other tools because their bank falls short
- Monzo Business now serves over one million businesses
UK small businesses spend an average of 53 minutes every working day on financial admin, according to Monzo Business.
Monzo Business published the figures in its first Money Moves Report on Wednesday (23 September). The report surveyed UK SMEs on their growth plans and the financial tools they use.
Financial admin covers tasks such as processing invoices and handling business expenses.
Nearly half of businesses (49%) said financial admin takes too long. A further 39% said it actively holds their business back from growing.
Monzo Business said the admin burden caused some firms to miss out on several opportunities, including:
- Investing in tech, equipment or premises (21%)
- Pursuing new markets (20%)
- Hiring staff (18%)
Monzo Business customer data showed that spending on software rose 15% over the past year. More than a third of SMEs (37%) said they now spend more time on financial admin than they did a year ago.
Only 24% of SMEs agreed that their bank actively helps them run their business rather than simply holding their money. More than half (55%) said they often use other tools because their bank doesn’t offer everything they need.
Nearly two-thirds of SMEs (63%) said simpler financial admin would free up time for strategy, sales and customer relationships. With that extra time, 33% said they would pursue new customers or markets, and 31% would invest in equipment, technology or premises. Another 26% said they would hire new staff.
The report found that 56% of UK SMEs feel confident about growth over the next year. Nearly two-thirds (62%) plan or hope to grow their headcount over the same period.
Rising costs topped the list of barriers to growth at 46%. Economic uncertainty followed at 33%, and 26% named the tax burden.
Monzo Business customer data also showed that spending on bills rose 12% over the past year. Transport spending stayed flat over the same period.
“Small businesses are confident about the year ahead and thinking about how they can grow,” said Jordan Shwide, general manager at Monzo Business.
“However, running a business still comes with far too much financial admin, and our research shows that this isn’t simply an inconvenience – it can take time away from growth,” Shwide added.
Monzo Business now has more than one million business customers and said it serves one in six UK businesses. Its tools include expense cards, tax pots, invoicing and payment links. The bank said payment links help businesses get paid 11 days faster.
