Nearly half of small and medium sized businesses have no efficient system in place to chase unpaid invoices, new figures from Business Link have revealed.
The poll of London SMEs also found that nearly a third are lacking when it comes to cashflow management, while almost half have no idea of what their gross profit margin or breakeven point is.
The findings have been released to coincide with the launch of Business Link’s new ten point financial health checklist, which it hopes will help business owners keep their finances in rude health.
“Sound financial management should be the bread and butter of every business, especially during these tough economic times,” said Matthew Perkins, a senior Business Link advisor.”
Smaller businesses (those with less than 10 staff) fared worse in the poll. Only 50% had a structured process in place to chase unpaid invoices compared to 72% of larger SMEs.
Perkins added: “As we head into the recovery period, understanding where your money is, following up your unpaid debts and knowing what your profit is, are vital to keep your business in the black and head for growth.”
Download the checklist here
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