Lack of planning hitting SME profits

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

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.”

Resources & Whitepapers

Why Professional Services Firms Should Ditch Folders and Embrace Metadata

Professional Services Why Professional Services Firms Should Ditch Folders and Embrace Metadata

1y

Why Professional Services Firms Should Ditch Folde...

In the past decade, the professional services industry has transformed significantly. Digital disruptions, increased competition, and changing market ...

View resource
2 Vital keys to Remaining Competitive for Professional Services Firms

2 Vital keys to Remaining Competitive for Professional Services Firms

1y

2 Vital keys to Remaining Competitive for Professi...

In 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 resource
Turn Accounts Payable into a value-engine

Accounting Firms Turn Accounts Payable into a value-engine

1y

Turn Accounts Payable into a value-engine

In 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 resource
Digital Links: A guide to MTD in 2021

Making Tax Digital Digital Links: A guide to MTD in 2021

1y

Digital Links: A guide to MTD in 2021

The 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 resource