Lack of planning hitting SME profits
Exact's survey finds SMEs are much more likely to turn a profit if they make a business plan
Exact's survey finds SMEs are much more likely to turn a profit if they make a business plan
SMEs are losing out by failing to put a business plan in place, according to a survey by Exact.
Of the 453 SMEs surveyed, 70% of those with plans made a profit, while profits were attained by 52% of those without a business plan. The average annual profit before tax was £2.8m.
A third failed to put a plan in place for the year, with two-thirds of those suggesting they didn’t see the need for a plan.
Lucy Fox, general manager UK cloud solutions for Exact, said: “The findings clearly show there are many SMEs who are missing out on the added value a business plan can offer, the consequence being that many may be failing to reach their full growth and business potential as a result.
“While the results should serve as a bit of a wake-up call, they also highlight that more needs to be done to address some of the misconceptions over what is involved in the planning process. Many don’t seem to realise that with the help of a trusted financial advisor, like an accountant, creating a plan can be done easily and the benefits can be enormous.”
More about:
In the past decade, the professional services industry has transformed significantly. Digital disruptions, increased competition, and changing market ...
View resourceIn recent months, professional services firms are facing more pressure than ever to deliver value to clients. Often, clients look at the firms own inf...
View resourceIn a world of instant results and automated workloads, the potential for AP to drive insights and transform results is enormous. But, if you’re still ...
View resourceThe first phase of Making Tax Digital (MTD) saw the requirement for the digital submission of the VAT Return using compliant software. That’s now behi...
View resourceSMEs suffering from late payments often find themselves facing gargantuan tax bills, forcing them to dip into their cash reserves. Here are 5 tips for...
View articleSMEs line up growth in 2014, but unsure about taking aggressive action to drive forward, finds Baker Tilly survey Read More...
View articleGovernment launches Growth Vouchers Programme for SMEs to use on professional advice Read More...
View articleBT encourages accountants to move their SME clients onto its online accounting software product called Xero Read More...
View articleOwner-managed companies are hoping to expand through acquisition or joint venture as the downturn hits sales Read More...
View articleSMEs want their accountant to provide more support and expert analysis, survey finds. Read More...
View article