British businesses are struggling with money management basics according to government statistics.
The surprising poll by Business Link found that small businesses are unaware of their breakeven point or gross profit margin. Almost one-third of businesses have no effective form of cashflow management, while 45 per cent have no efficient system in place to chase unpaid invoices.
‘Sound financial management should be the bread and butter of every business, especially during these tough economic times,’ Matthew Perkins, a senior Business Link advisor told the British Chambers of Commerce.
‘As we head into the recovery period,’ he added, ‘understanding where your money is, following up your unpaid debts and knowing what your profit is, are vital to keep your business in the black and head for growth.’
The latest statistics come as Business Link launches its 10-point financial health checklist, which aims to help businesses keep their finances in check.
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