Would-be business owners don’t have a plan and are confused by accounting terms
In lean times businesses need to be on top of their game, but when testing the financial fitness of 155 entrepreneurs accounting software company Intuit found many in dire need of a workout.
Intuit tested entrepreneurs thinking about starting or already running a business and found many are without a plan, baffled by accounting speak and confused by compliance.
For example, 47 per cent don’t know the correct definition of gross profit, 31 per cent don’t know what turnover means and only 61 per cent are aware that the VAT threshold is £73,000.
“We want to help Britain’s small businesses get fighting fit,” says Pernille Bruun-Jensen, managing director at Intuit UK. “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.
In addition to accounting software, which can help business owners better manage their finances, entrepreneurs need practical advice and support to feel more confident and equipped to tackle the financial challenges of starting and running a business.
Says Bruun-Jensen: “Over the next year Intuit will be training more than 1,000 small businesses across the UK as part of a workshop initiative backed by the Department for Business, Innovation and Skills.”
Intuit’s financial workshop sessions provide hands-on practical training on the basics of good record keeping, explaining and demonstrating how to track and improve cash flow, and how to save time on everyday tasks such as invoicing, tracking expenses and calculating and reporting VAT.
To take the Intuit financial fitness test visit http://app.snapapp.com/financialfitness.