By Paul Holland, managing director for UK/ANZ fleet at Corpay, including UK brand, Allstar.

Paul Holland, managing director for UK/ANZ fleet

Businesses in the UK have been battling against an onslaught of challenges for several years, with inflation and economic uncertainty high on the culprit list for many that were able to survive the harrowing years of the pandemic.

Naturally, business owners therefore have plenty on their plates to be managing, from increased workloads, staffing issues and market fluctuations, before the added strain that chasing payments adds to their stress levels. According to our recent research, over a third (35%) of businesses say chasing payments is the most frequent problem they encounter.

It is clear that the increasing amount of time spent chasing payments and managing admin is taking a significant toll on the UK’s business owners, but to what extent, and what can be done to stem the tide?

What does the data tell us?

Allstar’s research, which surveyed 500 SME business owners and decision-makers, completed with Censuswide, found that taking phone calls and chasing payments are the top gripes for businesses. More than a third (35%) say chasing payments is their most frequent problem while a quarter (25%) assign that status to the time they spend on the phone.

Time is money so each minute of the day counts, yet expense management is topping the list as the biggest time sap. Over a third of businesses (37%) say that chasing unpaid invoices is the admin task that takes the most time. Coupled with the 26% that put expense management at the top of their list, money admin is dominating the day for SMEs. While it’s the biggest, it’s not the only time sap, with getting organised and sending emails or making phone calls also high on the list.

With many reporting chasing unpaid invoices and admin as their perceived drain on time, does this translate into the reality for many? The answer is a resounding yes, with the research finding that SME owners are spending more than a full day every week on work-related admin. A third (30%) spend more than half a working day every week on admin, while a fifth take a full day every week (7-10 hours).

It’s not just time that chasing payments and work-related admin is draining but other vital resources too. While admin is key to running a tight ship that ensures visibility and efficiency, it’s not coming without cost. Almost three-quarters (70%) of businesses spend up to £1,000 on cash flow management and admin every week.

Keeping admin at bay

Burdened with a daily onslaught of challenges including cash flow management, SME owners are on the lookout for little wins that make their lives easier by removing points of friction and simplification.

This can take many forms and what will work best for one company might not be the same for another, but there are certain tools or practices that help. To minimise time spent on admin, consider the processes that are currently in place and if there are ways to streamline or automate them. For example, there are tools and software packages that can reduce the time spent on HR or managing appointments, while many businesses are turning to instant messaging services to whittle down the time spent on internal emails.

There are other tactics that business owners can implement such as setting time limits for each task on their to-do list or using the Pomodoro technique to avoid distractions. Some businesses have made it a point to limit internal meetings to save everyone time and improve efficiencies.

Managing payments

The old saying that if you ‘look after the pennies, the pounds will take care of themselves’ is true – every saving can contribute towards a healthier bank balance. To do this, assess if it’s possible to liquidate slow-moving inventory in order to free up cash tied up in stock that may be constraining the business’s cash flow, or avoid under- or overstocking generally. Meanwhile, maintaining a good relationship with your customers and suppliers is crucial to win trust and build stronger bonds that make negotiating longer payment terms easier, and discounts more likely to come your way.

Beyond these tactics, businesses can further drive down their cash flow headaches by harnessing the latest tools and products that could give customers up to 44 days’ interest free credit on all business purchases. Such solutions could help to make business payments and expenses easier to manage, as one relationship creates ‘less work’.

Helping everyone thrive

It’s a tough climate for the UK’s SMEs; our insights show that one of the biggest issues that are impacting businesses is the time and resources spent on managing payments and keeping on top of admin. That’s why business owners and proprietors are increasingly looking for ways to simplify their operations and improve efficiencies, making these arduous tasks less work. An all-in-one solution achieves this by enabling more simplicity and easier management.

In doing so, SMEs can re-focus their attention on those big-ticket items that require their expertise and attention and will ultimately mean the business can focus on its own success and that of the economy.