LONDON, January 29, 2015 /PRNewswire/ --
Half a million self-employed or small businesses will leave their tax returns to the last day
- Research released today shows almost one in ten self-employed people or small businesses still haven't finished completing their returns
- The survey also shows that inefficiencies around tax and accounting are amongst the biggest worries and barriers to small business in 2015
- Inefficiencies in the workplace cost the average UK business up to £35,000 in their first year
The deadline may be this Saturday, but more than half a million (one in ten) self-employed people or small businesses still haven't finished their self-assessment tax returns.
The study released today by business software provider Xero showed more than a quarter of small businesses believe other accounting issues such as slow or late payments are the biggest obstacles to the success of their business in 2015, with the same number saying chasing payments is one of the most difficult parts of running a business.
And these inefficiencies are costing businesses a significant amount of money and time with the average business saying they have lost up to £35,000 in their first year because of bad practices, potentially equating to over £175 billion in lost revenue (with over 5 million SMEs in the UK). Furthermore, businesses run by men are likely to lose up to £96,000 compared to female-led businesses, which estimate an average £78,000 loss as a result of bad practice.
But it's not just money - the average SME in the UK has been set back a minimum of 12 months as a result of these inefficiencies as they are unable to focus on other areas of the business.
If businesses in the UK could start over, 17% admit that they would put better systems in place to ensure the business runs smoothly, whereas one in 10 would have started a different business in a different sector and 20% would just have hired 'better' people.
Gary Turner, UK Managing Director at Xero, said: "Xero aims to take the headache out of dealing with finances by providing simple software solutions to allow business owners to focus on what they are passionate about, instead of allowing paperwork to pile up which causes so many people to leave dealing with their end of year tax return to the last minute."
Emma Lomax, founder of start-up company Sew Lomax, commented: "Recent improvements in technology have made it so much simpler for people to achieve their business goals - I'm constantly on the go, but mobile technology allows me to keep on top of my finances wherever I am so that I can focus on other aspects of my business."
Xero will be hosting Xerocon in February (10th/11th), its annual conference aimed at mobilising small business in the economy by offering insight and practical advice to transform accounting practices.
For more details and to purchase tickets, please head to https://www.xero.com/uk/xerocon/london/.
More case studies available on request
Notes to editors
The research for Shine Communications on behalf of Xero was carried out by Opinion Matters between:
09/01/2015 and 15/01/2015
Sample: 1,000 UK SME decision makers
All research conducted adheres to the MRS Codes of Conduct (2010) in the UK and ICC/ESOMAR World Research Guidelines. Opinion Matters is registered with the Information Commissioner's Office and is fully compliant with the Data Protection Act (1998).
Xero is beautiful, easy-to-use online accounting software for small businesses and heir advisers. The company has over 400,000 paying customers in more than 100 countries around the world, with more than 60,000 in the UK.
Xero seamlessly integrates with over 350 third party business tools, was ranked No.1 by Forbes as the World's Most Innovative Growth Company and was recently also the recipient of the prestigious British Accountancy, International Accounting Bulletin and most recently The Cloud Award.
Contact: Bernie Glendennan, Account Manager, Bernie.Glendennan@shinecom.com , +44-(0)7725-260-438 / +44-(0)207-100-7100