Self-employed waste 19 million hours on finances

Sole traders and micro businesses are spending 19 million hours every month, equivalent to 2.5 million working days, managing their finances resulting in 50% lacking in confidence and a third stressing over the task, according to research from KashFlow

The study aimed to get a better understanding about how the self employed felt when it comes to tasks such as balancing the books, managing cashflow and completing an annual tax return.

Around 15% of those surveyed said that managing their business finances was the thing they least enjoyed about being self-employed, with a fifth admitting not being able to switch off is a downside of being your own boss.

Among those who did not rate their financial management abilities highly and lacked confidence, or even left it to someone else to do, 43% said they feel frustrated with themselves and 54% are constantly worried that they have made a mistake. A quarter admitted to relying heavily on other people like friends and family, or their accountant, for help.

However, 34% said that they feel in control with 42% rating themselves highly and report feeling confident when dealing with the business finances.

Oliver Shaw, CEO of KashFlow said: ‘It’s clear that even those who feel confident managing their accounts still find it challenging at times, and that the overwhelming majority of sole traders and small business owners would like to spend less time on it.

‘Although half a day a month sounds reasonable for such a task, almost a third of those surveyed are spending longer than that, which is time they could be spending on doing what they love or, exploring growth opportunities.’

Kashflow surveyed hundreds of sole traders and business owners with one to nine employees for their research.

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