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Financial inefficiency costing SME's

Financial inefficiency could cost UK SMEs £175bn a year, research has found.

Accountancy software firm Xero said an average business could lose £35,000 a year due to not having access to the right tools.

Its study, which surveyed more than 1,000 entrepreneurs across the UK, identified the increasing importance of technology for small businesses.

Nationally, 95 per cent of people said technology was a central part of a happy workplace.

Entrepreneur and former Dragons Den star James Caan CBE said every entrepreneur “should be equipped with the right tools” to run their business.

The increasing availability of technology is boosting the number of businesses launched each year, he added.

He said: “Technology is such an important factor in the success of a business and its influence cannot be underestimated.

“Using the right technology to stay on top of your accounts is so fundamental to keeping a successful business and also a happy one.”

Xero said 45 per cent of UK entrepreneurs feel they do not have the right tools to do their job, greater emphasis is being put on technology, gadgets, good internet speeds and software, all of which are key to a happy workplace.

Entrepreneurs also value their work/life balance with nearly six out of 10 (58 per cent) small business owners prioritise juggling home life with business commitments. As a result, 67 per cent of those surveyed said they felt fulfilled in their work.