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ccording to new research from Dext , a leading bookkeeping automation platform provider , the UK ’ s small- and medium-sized businesses ( SMBs ) surveyed could be losing a staggering average of £ 742 every month from incorrect invoicing stemming from poor tracking of rechargeable expenses . With the UK home to over 5.5 million SMBs , the figures indicate up to a £ 1.1 billion monthly shortfall in the economy , signalling the need for a massive overhaul of outdated expense management practices .

The data , which compiled survey responses from over 500 UK SMB leaders as well as 100 accountants and bookkeepers , revealed inadequate client invoicing and expense management systems are leaving SMBs without access to real-time , accurate financial information . This deficiency affects businesses ’ ability to meet payment deadlines , with late payments from clients due to poor expense tracking costing SMBs up to an estimated £ 1.9 billion a month . These delays in payment create a ripple effect , challenging cash flow for SMBS and their suppliers . The incorrect tracking of rechargeable expenses , such as travel and supplies , is further exacerbating the issue , costing the UK ’ s SMB community up to £ 1.1 billion per month .

With 69 % of SMB leaders claiming untracked , misreported or delayed expenses results in limited visibility of their outstanding liabilities , the knock-on effect has been felt heavily by suppliers , who are dealing with delayed payments from SMBs worth up to £ 1.4 billion .

These inefficiencies were also found to hold severe long-term implications with two-thirds ( 68.6 %) of SMBs stating expense mismanagement had an impact on their growth initiatives . At the start of

2025 , 53 % of SMB owners have listed stronger financial control as their new year ’ s resolution .

According to Dext ’ s research , 48 % of SMB owners have experienced financial trouble over the past year with respondents stating better cash flow visibility would have helped them to avoid these issues . The findings align with the UK government ’ s emphasis in recent months to address late payment issues for SMBs on a broader scale , primarily through its Fair Payment Code .

Overseen by the Small Business Commissioner , Liz Barclay , the code helps smaller firms identify reliable and trusted partners by introducing a gold , silver and bronze system to reward best payment practices . Geared towards tackling late payments and lengthy payment terms that can lead to financial failure , the goal of the initiative is centred on boosting cash flow for small businesses which is central to their survival .

Sabby Gill , CEO at Dext , said : “ With SMBs forming over 99.9 % of total businesses , it ’ s clear that expense mismanagement is a challenge for the entire economy . As the data reveals , we ’ re in a vicious and costly cycle of delayed invoices , late payments and strained relationships , which is impacting stakeholders across the board .

“ No matter their size , industry or service , businesses need to embrace digital tools and get smarter about their expenses , especially in the face of rising rates and tighter tax controls . Those SMBs that prioritise smarter financial practices now will be better positioned to drive growth , strengthen relationships and contribute to a more resilient UK economy in 2025 .” �

AS THE DATA REVEALS , WE ’ RE IN A VICIOUS AND COSTLY CYCLE OF DELAYED INVOICES , LATE PAYMENTS AND STRAINED RELATIONSHIPS , WHICH IS IMPACTING STAKEHOLDERS ACROSS THE BOARD .

Intelligent SME . tech

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