Just one-third of self-employed feel “in control” of finances, says study

Sole traders and micro businesses spend 19 million hours every week managing their finances, according to new research from accountancy software KashFlow.

It says 50 per cent of those lack confidence to carry out the task comfortably, while a third are stressed as a result.

Small business owners were surveyed to gain an understanding of how they felt when it came to tasks such as balancing the books, managing cashflow and completing an annual tax return.

Around 15 per cent said managing their business finances was the aspect they least enjoyed about being self-employed.

A further 54 per cent said they felt “constantly worried” about making a mistake, while 43 per cent said they did not rate their financial management abilities highly and lacked confidence.

Comparatively, just 34 per cent said they felt in control, and 42 per cent rated themselves highly and report feeling confident when dealing with finances.

Oliver Shaw, CEO of KashFlow said: “It’s clear that even those who feel confident managing their accounts still find it challenging at times, and that the overwhelming majority of sole traders and small business owners would like to spend less time on it.

“Although half a day a month sounds reasonable for such a task, almost a third of those surveyed are spending longer than that, which is time they could be spending on doing what they love or exploring growth opportunities.”