Starting a new business? Get 40% off our accountancy services for 3 months! 😀

x

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.

More posts by this author
guest
0 Comments
Inline Feedbacks
View all comments

Read more posts...

June 2022 Client of the Month: Manea Kella

This month we spoke to Adrian Manea, architect and director at Manea Kella, a London based RIBA Chartered architecture and interior design…

Read More

Succession Planning for Business Owners: What Comes Next?

When you own a business, it’s extremely normal to feel like you’re surviving one day to the next – ‘winging it’, as…

Read More

The Accountancy Partnership – Our Positive Reviews

Here at The Accountancy Partnership, we’re proud of our customer reviews The reviews we receive from our customers show how hard we…

Read More
Back to Blog...

Confirm Transactions

The number of monthly transactions you have entered based on your turnover seem high. A transaction is one bookkeeping entry such as a sale, purchase, payment or receipt. Are you sure this is correct?

Yes, submit my quote
No, let me change it

Please contact our sales team if you’re unsure

VAT Returns

It is unlikely you will need this service, unless you are voluntarily registered for VAT.

Are you sure this is correct?

Yes, the business is VAT registered
No, let me change it

Call us on 020 3355 4047 if you’re not sure.

Bookkeeping

You only need this service if you want us to complete the bookkeeping on your behalf.

Would you prefer to complete your own bookkeeping?

Yes
No

Call us on 020 3355 4047 if you’re not sure.