Cash flow pressures climb as 57% of UK SMEs warn of rising costs

New data from Intuit QuickBooks paints a stark picture for the UK’s small and medium-sized businesses, with 57% predicting rising costs in the next quarter and 64% of those expressing concern over how this will affect their operations.

Nearly half (47%) report cash flow challenges, while 51% cite financial or resource management issues as barriers to business growth.

The findings, based on a UK sample of 980 SMB owners, form part of QuickBooks’ Quarterly Small Business Insights Survey and suggest that many small firms are ill-equipped to weather current and future economic volatility.

Pauline Green, Head of International Compliance at Intuit, said:

“SMBs may not be able to control global markets, but they can control their finances and be better prepared for changes. In the face of rising costs, supply chain pressures, and economic uncertainty, robust financial planning procedures play a vital role in helping businesses stay on the front foot.”

Further data shows:

• 57% predict costs will rise over the next 3 months
• Of those, 64% are concerned about the impact
• 47% are already experiencing cash flow pressures
• 42% source from overseas, leaving them exposed to global cost shocks
• 51% cite poor financial or resource management as a limiting factor

QuickBooks is urging business owners to adopt smarter, tech-driven financial practices to build resilience.

Amy Hancock, founder of accounting firm Hancock & Hastings, has spent more than 20 years helping SMBs simplify their financial processes. She offers five tips to help business owners strengthen their financial position:

1. Make time to review your numbers

Set aside 30 minutes each week to look over your income and outgoings. This regular check-in can help you spot overspending, identify cashflow issues early, and highlight opportunities for savings. Developing this habit not only improves visibility but gives you the confidence to make more informed financial decisions.

2. Improve financial awareness across your team

You don’t need a finance department to boost financial understanding. Equipping team leaders with the knowledge to understand core financial concepts—like gross profit, overheads and cash buffers—can lead to smarter, more proactive decisions across the business. A financially informed team is better prepared to adapt when challenges arise.

3. Forecast with flexibility

Building financial forecasts is essential, but going one step further and modelling different scenarios makes your business more agile. Think through potential changes such as supplier price increases or loss of a major client, and use this to test your resilience. Scenario planning gives you a clear picture of your options if the unexpected happens.

4. Invest in automation

Modern accounting software can help streamline everything from invoicing to payroll. Automating routine tasks saves valuable time, reduces the risk of human error, and gives you up-to-date data to support decision making. It also frees up resources to focus on strategy and growth.

5. Work with an accountant

Bringing in a qualified accountant can add real value beyond just year-end accounts. From identifying risks and tax planning to supporting long-term growth decisions, the right accountant is a trusted partner who helps your business stay compliant, agile and financially sound.

Also featured in the report is Will Jones, founder of Journeys by Design, whose travel and conservation business went from solo operation to international success. He credits better financial practices for helping to stabilise the company and grow sustainably through unpredictable times.

The data suggests many small firms remain vulnerable to global headwinds, but with better tools, forecasting, and expert support, the path to resilience is within reach.