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A survey conducted by Intuit, a financial management company, has indicated that a large number of UK entrepreneurs don’t have sufficient financial knowledge to maximise business performance. Out of 155 businesses in the UK, 20 percent of owners of established businesses don’t have a business plan, and 16 percent of people considering starting a business don’t expect to have a plan.

A plan is considered necessary when applying for business finance, in addition to keeping the business focused and on track. Accounting terminology is also a problem with some UK entrepreneurs, with 47 percent failing to identify the correct meaning of gross profit. Turnover remains a puzzle for 31 percent of entrepreneurs surveyed, and margin confuses 19 percent of respondents. Cash flow is a necessary component of business management, and yet 16 percent don’t know the proper definition.

Compliance is necessary for all businesses to avoid penalties and investigation from HM Revenue & Customs, as well as managing cash flow. The VAT threshold isn’t known by 39 percent of respondents and more than 20 percent aren’t sure what VAT taxable turnover is. According to Pernille Bruun-Jensen, managing director at Intuit UK, entrepreneurs require business support and professional financial help to start and manage a business successfully. Bruun-Jensen said:

“Too many businesses run out of cash, manage it badly or just don’t have the time or the skills to help themselves out of financial difficulty.”

More than 1000 small businesses will benefit from training by Intuit UK over the next 12 months in an initiative which is supported by the Department for Business, Innovation and Skills.

About The Author

Gary Fields

Content Writer working alongside our expert accountants to bring you the latest Tax and Accounting news.

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