Lack of planning hitting SME profits
Exact's survey finds SMEs are much more likely to turn a profit if they make a business plan
Exact's survey finds SMEs are much more likely to turn a profit if they make a business plan
SMEs are losing out by failing to put a business plan in place, according to a survey by Exact.
Of the 453 SMEs surveyed, 70% of those with plans made a profit, while profits were attained by 52% of those without a business plan. The average annual profit before tax was £2.8m.
A third failed to put a plan in place for the year, with two-thirds of those suggesting they didn’t see the need for a plan.
Lucy Fox, general manager UK cloud solutions for Exact, said: “The findings clearly show there are many SMEs who are missing out on the added value a business plan can offer, the consequence being that many may be failing to reach their full growth and business potential as a result.
“While the results should serve as a bit of a wake-up call, they also highlight that more needs to be done to address some of the misconceptions over what is involved in the planning process. Many don’t seem to realise that with the help of a trusted financial advisor, like an accountant, creating a plan can be done easily and the benefits can be enormous.”
More about:
The numbers you crunch tell a story. Your expertis...
10yEmbracing user-friendly AP systems can turn the tide, streamlining workflows, enhancing compliance, and opening doors to early payment discounts. Read...
View articleOrganisations can enhance their financial operations' efficiency, accuracy, and responsiveness by adopting platforms that offer them self-service cust...
View articleIn a world of instant results and automated workloads, the potential for AP to drive insights and transform results is enormous. But, if you’re still ...
View resourceDiscover how AP dashboards can transform your business by enhancing efficiency and accuracy in tracking key metrics, as revealed by the latest insight...
View articleLast month it was reported that Deloitte would be cutting approximately 1,200 jobs in the United States, making it the latest of the Big Four accounti...
View articleSMEs suffering from late payments often find themselves facing gargantuan tax bills, forcing them to dip into their cash reserves. Here are 5 tips for...
View articleSMEs line up growth in 2014, but unsure about taking aggressive action to drive forward, finds Baker Tilly survey Read More...
View articleGovernment launches Growth Vouchers Programme for SMEs to use on professional advice Read More...
View articleBT encourages accountants to move their SME clients onto its online accounting software product called Xero Read More...
View articleOwner-managed companies are hoping to expand through acquisition or joint venture as the downturn hits sales Read More...
View articleSMEs want their accountant to provide more support and expert analysis, survey finds. Read More...
View article