May 13, 2022 • 4 MIN READ
Problems Faced by Small and Medium-Sized UK Businesses and Their Solutions
This article will explain some of the main problems faced by small and medium-sized businesses in the UK but will explain how you can solve them
Running a small or medium-sized business can be rewarding, but it’s not without its difficulties. Managing finances for such businesses can be costly. At the very least, you’ll be paying for accountants, software platforms, and banking fees.
Not only can this be expensive, but it can also be energy-consuming as well. You have to dedicate a lot of time and effort to keeping everything running smoothly and ticking along as it should. What’s more, if you run your business at an international level, these problems only become more difficult to manage.
This article will explain some of the main problems faced by small and medium-sized businesses in the UK but will explain how you can solve them, as well.
Difficulties Faced by Small and Medium Business
When running a small or medium-sized business, you will encounter numerous challenges along the way. Here are a few:
Multiple Bank Accounts
While it isn’t necessarily essential to have multiple bank accounts, it often makes managing your finances far easier. At the very least, you’ll need a current account, but it may be worth considering a savings account and a loans account too.
Having multiple accounts isn’t just handy because different accounts can serve different functions. It’s also useful because it is more secure. If someone hacks into one of your accounts, they won’t have access to them all.
Of course, these all come with fees attached. The more accounts you open, the more you’ll have to pay. When you’re just starting out and don’t have much revenue, this is hardly ideal.
Additional Interfaces for Different Tools
When managing a company, you need access to a whole range of business tools. This includes, but is not limited to, payroll, invoicing software, and accounting software.
Many kinds of software are available on a monthly subscription basis. These costs may not seem exorbitant, but they add up over time. Not only that, but it will be your responsibility to make sure all these different pieces of software are all working properly.
Visiting the Bank
Running a business certainly keeps you busy. On some days, you might find you don’t have enough hours in the day to take care of all that needs doing! That’s why taking time out of your day to visit the bank can be such a hassle and, potentially, even a costly one.
Nonetheless, this is often a necessary evil. Whether it’s to make deposits, get advice, or open accounts, you’re bound to spend a lot of time waiting in queues at the bank. When your time could be much better spent elsewhere, this is hardly ideal!
Unsurprisingly, there’s an awful lot of paperwork involved in running a business. Organising all your papers is a full-time job in and of itself. Not only that, but physical papers take up a lot of space in your office. If you’re running a small operation out of a small location, this can end up being a bit of a nuisance.
Many responsibilities are included in running a business, but one of them is chasing up customers who have yet to pay for services or goods that have already been delivered. Keeping on top of accounts receivable is a crucial part of running a business; if you fall behind with it, your company’s cash flow could be seriously affected.
Not only do you need to make sure your records are organised, but you also have to make sure you establish solid communication between your customers. Keeping on top of all this can be extremely difficult, especially without any employees to delegate tasks to.
High FX Fees
While operating internationally does have some considerable benefits, it can also be quite expensive. Cross-border e-commerce costs are raised by payout fees and currency exchange rates. These are just more expenses that will get added to regular shipping fees.
Let Payrow Solve Your Business Problems
As we’ve shown, running a business comes with a long list of difficulties and expenses. However, Payrow has just the solution for you!
Payrow is a business banking solution for internet entrepreneurs based in the UK. Our aim is to increase the number of businesspeople based in the UK, helping them grow their company or freelance enterprise with access to affordable and up-to-date money-management tools.
If you’re wondering what benefits you can expect from Payrow, read on to find out more!
With Payrow’s powerful toolset, you can easily automate routine and time-consuming processes, like issuing invoices, paying salaries, managing account expenses, and so on. By automating these procedures, you’ll be able to free up time to work on managing other aspects of your business.
Payrow’s invoicing functionality makes it easy for you to issue invoices for your company. Its customizable templates give your invoices a polished, put-together feel. With Payrow, you can schedule payment reminders, match payments to invoices for ease of monitoring and even pay for invoices straight from your Payrow account.
By streamlining and simplifying the invoicing process, Payrow helps you keep on top of your company’s finances.
Payrow makes it easy for you to generate and check business statements. You can easily retrieve detailed information on required payments for the period and can generate statements in whatever format is most convenient to you. You can even automate this process so that statements are automatically created and distributed to several recipients at once.
Business is Easy with Payrow!
Payrow makes running your business easy and more affordable. If you would like some help managing your small or medium-sized company, we encourage you to check out our website to read more about our services.
If you would like to open an account with us and let us simplify your business management, you can easily register an account here.